Urban Tea Plan to Build a New Production, Training and Research Center
Urban Tea Inc. (NASDAQ: MYT), a Chinese beverage and baked-goods retailer, said it plans to establish a production, training and research institute center. The announcement sent its shares up 1.5 percent, closing at 67 cents on Tuesday.
The Changsha-based company said the new center will help to expand its research and product development capabilities in the future. It will also help the company meet the growing demand for products and provide streamlined logistical support.
Urban Tea said it expects to replicate the business model for foreign markets.
In statement released today, Urban Tea said that it will invest $1.45 million to set up the new center.
The center will include refrigeration facilities and a food warehouse in accordance with relevant State Food and Drug Administration regulations. In the future, the company announced it will focus its research and development on new beverages, light meals, and bakery goods.
Kan Lu, chief financial officer of Urban Tea, said, "The Center is expected to begin construction in June 2019 and be fully operational by December.
Lu added, "The construction of the center is an important milestone in the company's development process by centralizing many of the company's functions, and thus allowing us to reducing costs and continue our growth. In the future, we plan to establish production Centers in other cities in China. We strive to lay a solid foundation and expand rapidly while maintaining and steadily building upon our infrastructure."
Urban Tea Inc. is an emerging specialty tea product distributor, located in Changsha, Hunan. It is wholly owned Shanghai Ming Yun Tang Tea Ltd., which also controls Hunan Ming Yun Tang Brand Management Ltd.
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