Business
PLIN Announces Signing of Contract to Expand into the Soybean Oil Market
NEW YORK, May 13, 2020 /PRNewswire/ -- China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) ("Xiangtai" or the "Company"), an emerging growth company engaged in the
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[{"type":"text","content":"NEW YORK, May 13, 2020 /PRNewswire/ -- China Xiangtai Food Co., Ltd. (NASDAQ: PLIN) (\"Xiangtai\" or the \"Company\"), an emerging growth company engaged in the food processing business, today announced that its subsidiary, Chongqing Ji Mao Cang Feed Co., Ltd. (\"JMC\") entered into an agreement to sell 10,000 tons of soybean oil to Chongqing Wave Trading Co., Ltd. by October, 2020. The contract is worth $8.5 million (RMB 60.5 million) and JMC has received a 20% deposit as advance payment.\nAcquired by the Company in April 2020, JMC specializes in the sale of feed raw material and supplying feed formula solutions. JMC has sold more than 200,000 tons of soybean meal in 2019. \nSoybean oil is a vegetable oil extracted from the seeds of the soybean plant. It is one of the most widely consumed cooking oils and the second most consumed vegetable oil in the world. Between 2019 and 2020, around 56.75 million metric tons of soybean oil were produced around the world. \n\"We were very busy at supporting the food supply chain during the COVID-19 pandemic and glad to see more and more businesses reopened,\" said Ms. Jiaping Zhou, General Manager of JMC. \"For we saw the need for healthy food and believe there is an opportunity in other soybean products, our team decided to expand business into the soybean oil market.\"\n\"As we saw the price of soybean contracts raised recently, we believe our recently acquired subsidiary JMC seized a great opportunity and can deliver a better financial result this year,\" said Mr. Xiaohui Wu, President and Director of China Xiangtai Food Co., Ltd. \"The need for healthy food ingredient has been instrumental in driving the growth of the soybean oil market. This business expansion will benefit the financial results of both JMC and subsequently Xiangtai this year.\" \n\"As we continue to navigate the unprecedented time, it's more important than ever to keep entire supply chain working, ensure a sustainable, safe and reliable supply for our customers.\" Said Ms. Zeshu Dai, Chairman and Chief Executive Officer of China Xiangtai Food Co., Ltd. \"We are excited to leverage JMC's resources to continuing add accreditive value to our shareholders in the future.\"\nAbout Ji Mao Cang Feed Co., Ltd.\nFounded in 2012, Chongqing Ji Mao Cang Feed Co., Ltd (\"JMC\"). is a private enterprise specializing in the sale of fee...