China Xiangtai Food Co. Ltd. (PLIN) late last month came opening a restaurant in Chongqing, China. With the grand opening of that restaurant, the company paved the way for its hot pot restaurant strategy.
China Xiangtai Food is an increasingly growing company attached with the food processing business in China.
Chairwoman and Chief Executive Officer of the Company, Ms Zeshu Dai said that grand opening of the first hot pot restaurant is a key achievement. It is not only company’s very first move to explore and expand in the new market but is also an opportunity to extend our clientage.
The company is intending using a franchise model for its own hot pot brand. The company is in plan to open 200 restaurants using that model by 2021. She took pride for her company being resourceful in the industry. She hailed company’s ability to provide customers with a true experience of farm to table foods. She shared company’s future plan of expanding hot pot chain and believed that it will be driving revenues for the company.
In a separate announcement at the time company also reported that its subsidiary Chongqing Ji Mao Cang Feed Co., Ltd. (“JMC”) made significant sales. JMC sold soybean meal of worth nearly $5 million in a time period of one week. PLIN won a purchase agreement for providing 12,000 tons of soybean meal. The company inked the agreement with Zhenjiang Branch of China Grain Reserve Corporation. After extracting oil from the soybean, the remains left behind have been used to make soybean meal. That has been further used as a food supplement in foods and animal feeds.
Ms Zeshu Dai encouraged the significant sales in a week of time. She expected the company maintaining its sales to Sinograin stable in the future. The current approach will result in company’s further excel into the south western Chinese markets. And that will be a value creation for our shareholders, she added.