China Xiangtai Launches Online Ordering Service; Shares Down 9%
China Xiangtai Food Co. Ltd. (Nasdaq: PLIN) announced Thursday that it has launched an online ordering service with Casin Smart Service Group Co. Ltd., (CSSG) to accommodate communities in Chongqing, but its stock fell more than 9% to $2.65 per American depositary share by midday.
The Chongqing-based pork processor said in a statement today that its products can now be ordered through CSSG's e-commerce platform.
China Xiangtai said Chongqing is a place where residents have limited outdoor access to food purchases due to the implementation of coronavirus epidemic control regulations.
"We are excited to work with CSSG to launch an online order and delivery service. It is a good start for us to serve five communities managed by CSSG and benefit over 70,000 residents. We hope to leverage the platform and deliver our products to more communities and help more people in the epidemic," Zeshu Dai, the chairwoman and chief executive officer of China Xiangtai, said in a statement today.
Earlier this month, China Xiangtai slipped to a historic trading low of $2.39 per share. Since its IPO in August, raising $5.86 million, the company has mostly traded under its issuance price of $5 per share.
In pork processing, China Xiangtai provides slaughtering, packing, distribution, and wholesale of a variety of pork meat and pork parts. It also offers other fresh and processed products, including beef, lamb, and poultry.
On Tuesday, the company said it partnered with Chongqing Good Helper Commerce Co. Ltd., which is backed by the local government, to expand its meat business.
Earlier this month, China Xiangtai announced that its supermarket achieved sales growth of 300% during the Chinese New Year.