Fund Utilization Allocation for Muyuan Foods' Hong Kong IPO

According to the latest public information, Muyuan Foods’ Hong Kong IPO has passed the HKEX hearing, with joint sponsors being Morgan Stanley, CITIC Securities, and Goldman Sachs[1]. The following is the detailed allocation of the raised funds:

• Overseas Business Expansion
  : Mainly used to establish pig breeding bases in emerging markets such as Southeast Asia, including the Phase II agreement signed with BAF Vietnam Agriculture Co., Ltd. in September 2025, which plans to invest approximately RMB 3.2 billion in a high-rise pig breeding project with an annual output of 1.6 million head and supporting feed mill in Tay Ninh Province, Vietnam[2]
• International Feed Sourcing
  : Actively carry out sourcing work for international feed raw materials to ensure the stability of feed supply and reduce procurement costs[3]
• Overseas Talent and Industrial Center Construction
  : Expand the overseas talent pool, establish overseas industrial centers, and strengthen technical cooperation with leading overseas enterprises[3]

• Whole Industry Chain Technological R&D
  : Increase R&D investment in core technical links such as feed production, pig breeding, and intelligent breeding[2]
• Breeding Technology Upgrade
  : Focus investment in key technical fields such as breeding pig cultivation and genetic improvement[2]
• Intelligent Breeding System
  : Promote the construction of smart pig farms to improve breeding efficiency and biosecurity levels[2]

• Mergers and Acquisitions (M&A) and Strategic Alliances
  : Used for industry M&A, strategic alliances, joint venture cooperation, or minority equity investments[3]
• International Layout
  : Supports the company’s landmark strategic initiative to expand from domestic to overseas markets[3]

• Issuance Scale
  : Plans to issue no more than 546 million overseas listed ordinary shares, with joint sponsors being Morgan Stanley, CITIC Securities, and Goldman Sachs[1]
• Fundraising Goal
  : For the Hong Kong listing, “completing the issuance itself is more important than the fundraising scale”, and the main purpose is to enhance the “credibility” in the global capital market[2]
• Latest Progress
  : Has passed the HKEX hearing on January 16, 2026[1]

The core strategic goal of the funds raised from Muyuan Foods’ Hong Kong IPO is to accelerate the internationalization process. Qin Jun, the company’s Secretary to the Board of Directors, stated that the Hong Kong IPO is one of the landmark events for Muyuan Foods to expand from domestic to overseas markets[3]. Through the Hong Kong listing, the company can issue stocks denominated in US dollars or Hong Kong dollars, which facilitates future capital expenditures such as cross-border M&A and overseas factory construction, and reduces the risk of exchange rate mismatch.

[1] Sina Finance - “Muyuan Foods Passes HKEX IPO Hearing” (https://finance.sina.com.cn/stock/hkstock/2026-01-19/doc-inhhvmxv7983961.shtml)
[2] Beijing Business Today - “One Step Closer to Hong Kong Listing, Muyuan Foods Seeks Solutions for Internationalization” (https://finance.sina.com.cn/jjxw/2025-12-07/doc-infzysvy4402634.shtml)
[3] National Business Daily - “Muyuan Foods’ Hong Kong IPO Application Arrives” (https://www.nbd.com.cn/articles/2025-05-27/3890507.html)