Global Feed Market Size Projected To Exceed $90 Billion During 2020-2024 - Seite 2

China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWS - China Xiangtai Food Enters into MOU to Acquire Controlling Interest in Chongqing Ji Mao Cang Feed Co., Ltd.  - China Xiangtai Food (the "Company" or the "PLIN"), an emerging growth company primarily engaged in pork processing in China, today announced that the Company, through its subsidiary Chongqing Jinghuangtai Enterprise Management Consulting Co., Ltd., entered into a non-binding Memorandum of Understanding (the "MOU") to acquire 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd.("JMC"), a private enterprise specializing in feed raw material sales and providing feed formula solutions, to expand the southwest market in China.

Pursuant to the MOU signed on March 23, 2020, PLIN proposed to acquire 51% controlling interest of JMC, one of the leading feed sales companies in southwest China. JMC has more than 200 customers in farm industry and nearly 100 customers in feed production industry. In 2019, JMC sold more than 200,000 tons of soybean meal, exceeding RMB 500 million (approximately $70,000 USD) in sales. Given the Company's revenue of fiscal year 2019 was $102,545,152USD, PLIN is expected to increase 70% of revenue through this acquisition.

Ms. Jiaping Zhou, General Manager of JMC, commented, "We are pleased to have an opportunity to start a partnership with a Nasdaq listed company, and it is regarded as an essential milestone in JMC's history. JMC stands to benefit greatly from PLIN's senior experience and resources in the food industry, and values PLIN's continued involvement as we look to further expand JMC's profitability with the development of production capability and enhancements to our distribution channels."

Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food, commented, "We are enthusiastic about partnering with JMC to continue accelerating the growth of the Company. This move is in line with our growing strategy of solidifying our industry position by gaining additional market share and expanding our product portfolio. With JMC's capability in feed raw material and formula solutions, we can improve our industrial chain and our competitiveness to position well for the expansion."