Milkground invests $310m of idle funds in cash management products

Shanghai Milkground Food Technology Co., Ltd. (Milkground) announced its decision to utilize $310 million of temporarily idle proceeds from its public offering for cash management. This decision, approved by the board of directors and board of supervisors on November 18, 2024, aims to enhance the efficiency of fund utilization and increase company profits without affecting normal operations or investment project progress. The funds are being invested in principal-protected floating income bank wealth management products, characterized by high security and liquidity.

The capital originates from Milkground's public offering of 100,976,102 A-shares at 29.71 yuan per share, totaling 2,999,999,990.42 yuan. After deducting issuing expenses, the net proceeds amounted to 2,981,164,864.86 yuan. The cash management plan involves two structured deposit products with a duration of 49 days each, maturing on November 25, 2025, and November 28, 2025. These products offer a minimum guaranteed annual yield of 0.70%, with potential for higher floating yields up to 1.32% based on the performance of the EUR/USD exchange rate.

As of June 30, 2025, Milkground's consolidated balance sheet showed monetary capital of 65,561.66 million yuan. The $310 million investment represents 47.28% of the company’s most recent period-end monetary capital. The company asserts that this cash management strategy will not negatively impact its core business, financial health, operating results, or cash flow. The transaction is in compliance with regulatory requirements and has received approval from both the supervisory board and the recommending institution.