Milkground allocates CNY 425m to wealth management products

Shanghai Milkground Food Tech (SSE:600882) announced that it will allocate CNY 425 million of temporarily idle raised funds to bank wealth management products. The company’s board of directors approved the move, which aims to enhance the efficiency of its capital utilization and increase returns for shareholders, without affecting normal business operations or the progress of its investment projects funded by raised capital. The investments will be in principal-protected, floating-rate income products. The company said that the money will come from funds raised in 2021, with the plan for this amount of idle funds to be in wealth management approved back in 2024. The individual products have a lifespan of around 30-160 days.