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.
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SOURCE Urban Tea Inc.