CHANGSHA, China, April 23, 2019 /PRNewswire/ -- Urban Tea
Inc. (the "Company", "we" or "Urban
Tea") (NASDAQ: MYT), a premier retailer of specialty teas
and baked goods in China,
announced today that the sale of the Company's wholly-owned
specialty chemicals was completed on April
13, 2019 after shareholders' approval at the shareholders
meeting on March 29, 2019.
As such, Urban Tea's current
business is solely engaged in specialty tea product distribution
and retail. Urban Tea's mission is
integrating strategic brand positioning, offline operations, store
management, and brand marketing into a one-stop business solution
in order to provide customers the most high-quality, dedicated, and
unique dining experience in a stylist, yet inviting, store
environment. The Company currently operates flagship stores and
general stores in the center of metropolitan areas in Changsha and Shaoyang city, Hunan province, with a clear plan of expanding
its base in the similar busy centers throughout other
cities.
Since November 2018, the Company
has opened a total of 8 stores including two flagship stores and
six general stores with the ninth store pending for its grand
opening in Hunan Province. The
stores are currently under "Your Ladyship Tea" and "Buoyance Manor"
brands. "Your Ladyship Tea" stores provide specialty teas, such as
fruit tea, milk tea, along with some light snacks. "Buoyance Manor"
stores mainly offer bakery products and variety of coffee drinks. A
third brand which is to be promoted soon, "Meet Honey" will mainly
focus on selling snacks and accessories, including peanut nougat
gift boxes, cookies, coffee mugs, and tea cups.
According to industry data, the sales of national comprehensive
beverage stores in 2017, such as dessert shops, various types of
water bars, traditional tea shops, traditional tea houses, new
Chinese teas, etc., excluding coffee shops, reached RMB 47.2 billion (approximately USD 7.04 billion) with a year-on-year increase of
14.29%. It is expected that the sales of integrated beverages in
2019 will exceed RMB 60 billion
(approximately USD 8.95 billion). The
potential market size for Chinese tea is estimated between
RMB 40 billion (approximately
USD 5.97 billion) and RMB 50 billion (approximately USD 7.46 billion). In addition to the beverage
store management, the Company also plans to provide intimate new
retail sharing platforms for investment partners to serve their
business needs in a full range of "housekeeping" services such as
site selection, decoration, training, publicity, and custody
operations to generate additional revenues.
Mr. Yi Long, Executive Chief
Officer of Urban Tea Inc., commented, "this divestiture is an
important step for the Company in our new direction focusing on
specialty teas and bakery business; we expect these to have
moderate growth in the future. Our talented team is in the process
of building a brand that seeks to expand the definition of tea with
innovative products and inviting stores with a company culture with
a concentration on the knowledge and passion for tea that will
delight customers. It is a very exciting time for Urban Tea - the Company is working on
establishing a strong presence within China and potentially expanding in other
countries. Going forward, with innovative and expansion in mind, we
are committed to the fast-growing beverage market to generate
robust business results for our long-term supported
shareholders."
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,
Shanghai Ming Yun Tang Tea Limited ("Shanghai MYT") which controls
Hunan Ming Yun Tang Brand Management Co., Ltd. ("Hunan MYT"), the
Company currently market a wide range of trendy tea drinks, light
meals, and pastries targeting China's new urban generation in Hunan province. 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. We expect to start selling our products in our managed
and JV stores in mid-2019.
Safe Harbor Statement
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.
For more information, please contact
investor relations:
Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE Urban Tea Inc.