CHANGSHA, China, Jan. 20, 2021 /PRNewswire/ -- Urban Tea Inc. (the
"Company," "we" or "Urban Tea")
(NASDAQ: MYT), a premier retailer of specialty teas and baked goods
based in Hunan, China, announced
today that its 51% owned subsidiary, Hunan 39 Pu Tea Co., Ltd. ("39
Pu Tea"), has completed its financial performance commitment for
the 12 months ended December 31,
2020.
The acquisition of the 51% equity interest in 39 Pu Tea, a
limited liability company engaged in tea research and development,
tea production, tea treading, distribution, and tea cultural
heritage projects, was completed in November
2019. Pursuant to the terms of the Share Purchase Agreement
by and among the Company, Mingyuntang (Shanghai) Tea Co., Ltd., 39 Pu Tea, and
certain shareholders of 39 Pu Tea , 39 Pu Tea shall achieve revenue
of $4 million or a net income of
$1 million for the fiscal year of
2020 for earn out payment to the 39 Pu Tea shareholders.
Based on Urban Tea's internal
accounting review, the revenue of 39 Pu Tea from January 1, 2020 to December 31, 2020 is $4.05
million. As such 39 Pu Tea has met the financial performance
target set forth in the Share Purchase Agreement. Due to 39 Pu
Tea's revenue contribution, Urban
Tea expects to record a robust revenue growth of over 400%
in the year ending June 30, 2021.
Ms. Tan, the Executive Manager of 39 Pu Tea, said, "We are proud
to be able to thrive during the pandemic and turn the challenges we
face into new opportunities. The sales team has tried a range of
different strategies to boost sales from live streaming, precision
marketing, and launching new customized products. Since the second
half of 2020, 39 Pu Tea has fully resumed its sales operations, and
has implemented changes and innovations adopted during Covid-19
pandemic. We firmly believe that our innovative sales plan will
continue to drive growth in the future."
Long Yi, Chief Executive Officer
of Urban Tea, commented, "In a year
full of unprecedented challenges due to the Covid-19 pandemic, this
achievement indicates our team's unwavering commitment and
dedication. Tea trading, as one of our three core business
segments, will increase total sales of Urban Tea by more than
400% in the year ending June 30,
2021. After a successful year of launching our strategic
layout plan, the management team is increasingly confident in our
ability to grow our franchisee network and expand operations
internationally. We anticipate strong financial and operational
momentum in 2021 and beyond."
About Urban Tea, Inc.
Urban Tea, Inc. is an emerging
specialty tea product distributer and retailer headquartered in
Changsha City, Hunan Province, China. Through its wholly owned subsidiary,
Mingyuntang (Shanghai) Tea Limited
which controls Hunan Ming Yun Tang Brand Management Co., Ltd. and
Hunan 39 Pu Tea Co., Ltd., the
Company currently market a wide range of trendy tea drinks, light
meals, and pastries targeting China's new urban generation in Hunan province. The Company also currently
operates two stores in New York
City. Our products are focused on not only their taste but
also their aesthetic presentation and health benefits. Our products
are currently being offered via our own stores. For more
information, please visit: http://ir.h-n-myt.com/investor.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involving known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website
(http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other
than as required under the applicable securities laws, the Company
does not assume a duty to update these forward-looking
statements.
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SOURCE Urban Tea Inc.
