Yum China Holdings, Inc. (NYSE:YUMC) signed a strategic cooperation framework agreement with the Shaanxi provincial government in Xi'an on September 25, 2019. This agreement consolidates the joint commitment of both parties to leverage their respective advantages to comprehensively deepen their cooperation.
Liu Guozhong, Governor of Shaanxi province, met with Fred Hu, Chairman of Yum China, and Joey Wat, CEO of Yum China, as well as a delegation from Yum China's Board of Directors and leadership team. Jia Feng, Deputy Secretary-General of Shaanxi provincial government, and Joey Wat signed the strategic cooperation framework agreement on behalf of both parties.
Yum China has been active in Shaanxi since opening its first KFC store in Xi'an in 1993, followed by the establishment of its Xi'an Customer Service Center in 2005. This cooperation will help Yum China further benefit from the location and resource strengths of Shaanxi as it seeks to expand its presence in the province and enhance the role of Xi'an as its regional headquarters for Northwest China. It will also combine the huge consumer base of Yum China with the unique assets of Shaanxi to support the economic development of the province.
As part of the agreement, Yum China will bolster its fast-growing digital business by upgrading its Xi'an Customer Service Center to a Digital Service Center that will contribute to building Shaanxi's digital economy. In addition, Yum China will open more stores at prominent locations across Shaanxi, including new builds at historic and cultural sites, and introduce new and innovative business models, store concepts and services to the province. Yum China plans to leverage its expertise in supply chain management and cold-chain logistics to support the development of local businesses in Shaanxi and promote the sustainable growth of the local economy.
Yum China also plans to introduce its signature Corporate Social Responsibility ("CSR") and sustainability programs to Shaanxi. These include the One Yuan Donation program, that provides energy-efficient kitchen equipment to elementary schools in rural areas, and the "Grow Local Initiative", that supports targeted poverty alleviation and the cultivation and commercialization of local agricultural products.
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