Tianli Agritech Signs Contract with Leading Wuhan Supermarket Chain
WUHAN CITY, China, May 29, 2013 /PRNewswire/ -- Tianli Agritech, Inc. (NASDAQ: OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs, market hogs, and black hogs, headquartered in Wuhan City, China, today announced that the company had signed an agreement with Zhongbai Warehouse Supermarket Co., Ltd. ("ZHONGBAI") to sell cuts of its Tianli-Xiduhei™ black hog meat through five of ZHONGBAI's warehouse outlets in Wuhan, Hubei province.
Established in 1997, ZHONGBAI is a wholly owned subsidiary of Zhongbai Holding Group Co. Ltd. (ticker: 000759.SZ) ("Zhongbai Holding"), a leading supermarket chain in the Wuhan metropolitan area. According to its latest Annual Report, Zhongbai Holding had 244 warehouses, 651 convenience stores, 5 department stores, and 45 consumer electronics stores at the end of 2012. Net sales of Zhongbai Holding totaled RMB 15.7 billion in 2012, of which ZHONGBAI contributed approximately RMB 11.2 billion.
Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "We are very excited to see cuts of our branded black hog meat gain traction in the Wuhan market following our recent entry into the Beijing market. This marks an important milestone for our retail channel buildout effort and could potentially open the door for us to gain broader access to Zhongbai Holding's network of stores. As we are committed to expand our reach in the Wuhan market and explore other geographic markets, we expect retail sales of our black hog products to generate meaningful revenue and earnings in coming quarters."
Tianli's black hogs and Tianli-Xiduhei™ meat cuts are products of the Company's "10,000 families and 1,000,000 Black Hogs" program in Enshi Prefecture, Hubei Province. By March 31, 2013, the Company had provided funds totaling $12.67 million and completed the construction of 765 black hog farms in Enshi Prefecture.
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising, and selling breeder and market hogs in China and is developing a retail channel for its pork products including high-value, black hog meat. The Company is focused on growing high quality hogs for sale for breeding and meat purposes. The Company conducts genetic, breeding, and nutrition research to steadily improve its production capabilities.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
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SOURCE Tianli Agritech, Inc.