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CHANGSHA, China, Jan. 20, 2021 /PRNewswire/ -- Urban Tea Inc. (the "Company," "we" or "Urban Tea") (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that its 51% owned subsidiary, Hunan 39 Pu Tea Co., Ltd. ("39 Pu Tea"), has completed its financial performance commitment for the 12 months ended December 31, 2020.
The acquisition of the 51% equity interest in 39 Pu Tea, a limited liability company engaged in tea research and development, tea production, tea treading, distribution, and tea cultural heritage projects, was completed in November 2019. Pursuant to the terms of the Share Purchase Agreement by and among the Company, Mingyuntang (Shanghai) Tea Co., Ltd., 39 Pu Tea, and certain shareholders of 39 Pu Tea , 39 Pu Tea shall achieve revenue of $4 million or a net income of $1 million for the fiscal year of 2020 for earn out payment to the 39 Pu Tea shareholders.
Based on Urban Tea's internal accounting review, the revenue of 39 Pu Tea from January 1, 2020 to December 31, 2020 is $4.05 million. As such 39 Pu Tea has met the financial performance target set forth in the Share Purchase Agreement. Due to 39 Pu Tea's revenue contribution, Urban Tea expects to record a robust revenue growth of over 400% in the year ending June 30, 2021.
Ms. Tan, the Executive Manager of 39 Pu Tea, said, "We are proud to be able to thrive during the pandemic and turn the challenges we face into new opportunities. The sales team has tried a range of different strategies to boost sales from live streaming, precision marketing, and launching new customized products. Since the second half of 2020, 39 Pu Tea has fully resumed its sales operations, and has implemented changes and innovations adopted during Covid-19 pandemic. We firmly believe that our innovative sales plan will continue to drive growth in the future."
Long Yi, Chief Executive Officer of Urban Tea, commented, "In a year full of unprecedented challenges due to the Covid-19 pandemic, this achievement indicates our team's unwavering commitment and dedication. Tea trading, as one of our three core business segments, will increase total sales of Urban Tea by more than 400% in the year ending June 30, 2021. After a successful year of launching our strategic layout plan, the management team is increasingly confident in our ability to grow our franchisee network and expand operations internationally. We anticipate strong financial and operational momentum in 2021 and beyond."
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, Mingyuntang (Shanghai) Tea Limited which controls Hunan Ming Yun Tang Brand Management Co., Ltd. and Hunan 39 Pu Tea Co., Ltd., the Company currently market a wide range of trendy tea drinks, light meals, and pastries targeting China's new urban generation in Hunan province. The Company also currently operates two stores in New York City. 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. For more information, please visit: http://ir.h-n-myt.com/investor.
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.