Entered into a business collaboration agreement with Chongqing Good Helper Commerce
China Xiangtai Food Co. Ltd., an emerging growth company primarily engaged in pork processing in China, has announced that the Company, through its primary operating subsidiary Chongqing Penglin Food Co., Ltd, entered into a business collaboration agreement with Chongqing Good Helper Commerce Co., Ltd. (“CGHC”), a financing company backed by the local government in Chongqing, China for a business collaboration for up to RMB35,000,000 on the expansion of operation scale and diversification of distribution channels.
Pursuant to the Agreement, both parties agreed to collaborate on the purchasing, packaging, sales of pork, beef and lamb, as well as handle staffing, renting and managing additional facilities. CGHC has agreed to provide the Company with financing up of to RMB 35,000,000 with an annual interest rate of 10% in considerations of equal profit and expense sharing.
Both parties are aware of the spread of 2019 Novel Coronavirus (2019-nCoV) and are focused on being detailed orientated by providing continued transparency, integrity, and keeping its pork clean, price fair and stable, and timely delivery of quality fresh pork and other freshly processed meat products to supermarkets in Chongqing every day.
Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food, commented, “We appreciate CGHC’s trust in PLIN, and are pleased to have reached this agreement. We need to increase our sale volume for premium quality product with diversified distribution channels to meet the strong domestic pork demand. This collaboration would offer us the opportunity to expand to new retail channels and access to considerable working capital for its business needs.”
