Urban Tea Inc. (NASDAQ: MYT), a Chinese beverage and the baked-goods retailer says it plans to establish a production, training and research institute center. Sending its shares up 1.52 percent, closing at 67 cents on Tuesday.
Changsha- based company said this center will help to expand its production, training, research, and product development capabilities in the future. As well as meet the growing demand for products and provide streamlined logistical support. Uber Tea said it expects to replicate the business model from foreign markets.
Urban Tea said in the statement that it will invest $1.45 million to set up the center. And a research and development center, a training center, a production center in accordance with relevant State Food and Drug Administration regulations, a fridge facility and food warehouse will be included in the center.
In the future, the company announces it will focus on research and development on new beverages, light meals, and bakeries.
Kan Lu, the chief financial officer of Urban Tea, said, "The Center is expected to begin construction in June 2019 and be fully operational by December 2019. The construction of the Center is an important milestone in the Company's development process by centralizing many of the Company's functions, and thus allowing us to reducing costs and continue our growth. In the future, we plan to establish production Centers in other cities in China. We strive to lay a solid foundation and expand rapidly while maintaining and steadily building upon our infrastructure."
Urban Tea, Inc. is an emerging specialty tea product distributor, which located in Changsha, Hunan. It wholly owned Shanghai Ming Yun Tang Tea Ltd., which controls Hunan Ming Yun Tang Brand Management Ltd.