The City of London financial district can be seen as people walk along the south side of the River Thames, Britain, in this March 19, 2021 file photo. [Photo/Agencies]

Chinese tea maker Xiangpiaopiao Food Co., Ltd. (Xiangpiaopiao Food, 603711. SH) announced on Monday that the company has signed a 12-year strategic cooperation agreement with Oatly China to explore Chinese market of plant-based drink products.

Eyeing the great potential and huge market of plant-based food across the globe, the two sides will establish a joint venture (JV) to conduct research and development (R&D), production and sales of oat drinks in China. One of Xiangpiaopiao Food's brand LAN Fong Yuen and Oatly Inside will jointly develop pre-packaged plant-based drinks.

The introduction of oat-based milk tea will contribute to Xiangpiaopiao Food's health-orientied upgrade and sustainable growth of its business, said the Chinese tea maker.

Oatly China is a wholly-owned subsidiary of the Nasdaq-listed Oatly Group AB, the Swedish original and largest oat drink company.

Founded in 2005, Xiangpiaopiao Food has been committed to the R&D, porduction and sales of milk tea and juice tea in China. As a leading player in the industry, Xiangpiaopiao Food was listed in China's A-share market in November 2017, with three brands of Xiang Piao Piao Senpure, Meco and LAN Fong Yuen.