Milkground invests idle funds in short-term cash management

Shanghai Milkground Food Technology Co., Ltd. (Milkground) has announced the use of RMB 20 million in temporarily idle public offering proceeds for cash management. This investment, approved by the board and supervisory board on November 18, 2024, is in a principal-protected, floating-yield structured deposit product from China Everbright Bank. The product has a 44-day term, maturing on December 8, 2025, and its yield is tied to the BFIX EURUSD spot exchange rate, offering potential returns between 0.70% and 1.70%.

The funds originate from a 2021 public offering, which raised gross proceeds of RMB 2,999,999,990.42. The company emphasizes this cash management strategy aims to enhance returns for the company and shareholders without impacting ongoing operations or the progress of its investment projects, which include intelligent production for specialty cheese and a comprehensive processing base in Changchun.

This move is intended to improve the efficiency of capital use, with the investment not expected to negatively affect Milkground's core business, financial health, operating results, or cash flow. As of June 30, 2025, the RMB 20 million investment represents 3.05% of the company's consolidated cash and bank balances of RMB 655,616,600.