China Xiangtai Food Co Ltd (NASDAQ:PLIN), which is mainly engaged in pork processing, revealed on Monday that it won the 2020 First Class Award from marketing platform Preferred Merchant, which ranks companies in different industries and conducts field investigations and monitors them in real-time.
The award, which is described as an “Excellent Chongqing International Food Enterprise Recommendation,” is aimed at setting up industry standards, and promoting sustainable and vigorous development of China’s international food industry. The award also brings consumer awareness, resulting in “more rational consumption choices,” saving shoppers time and energy by pointing them towards the better food decisions and companies.
The China Xiangtai Food Company is headquartered in Chongqing, an important industrial center in southwestern China.
"We are excited to win the award. The recognition from Preferred Merchant reinforces our growing footprint locally, where we continue to increase our products offerings, ensure our products' quality, and attract more customers,” China Xiangtai Food CEO Zeshu Dai said in a statement.
“The award highlights the commitment and passion of our team to build an industry benchmark that meets consumers' needs for healthy and high-quality food," she added.
The food company's stock was up 3.4% at $1.21 in afternoon trading in New York.
China Xiangtai Food Co boss added that every year the company received “multiple awards,” and every one of them demonstrated the firm’s “exceptional reputation” and market position.
“We are honored to receive the Award from Preferred Merchant and we believe it can help improve PLIN's branding awareness and expand our business," she added.
Meanwhile, the China Xiangtai Food Company through its primary operating subsidiary Chongqing Penglin Food Company struck a lease agreement to expand its hog breeding business in the Guangxi Province.
Following the agreement, the company has agreed to rent a 2,500-square-meter hog breeding farm with four hog breeding houses in Guangxi for five years until May 7, 2025.
"By combining the capacity of the farm and business experience of our company, we will be able to have better control of the supply chain and thus our company to continue building our competitive advantages in the market," said Dai.
Xiaohui Wu, who is the president and a director of China Xiangtai said the company is implementing its “vertical integration strategy to seize development opportunities.”
“The farm can further optimize the deployment of PLIN's production capacity while also increasing the quality of our offerings at fair and stable prices since we are able to control the supply end of our products. We believe this move will further enhance the company's profitability and realize our commitment to increase long-term shareholder value,” added Wu.
The company's operations span the pork processing value chain, including slaughtering, packing, distribution, and the wholesale marketing of fresh pork meat and parts. Although it is focused on pork products, the company also sells other fresh and processed products, including beef, lamb and poultry.
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