HK Stock Market Move | YOURAN DAIRY (09858) closed up nearly 5%, the company plans to raise HK$2.3 billion in funds, which may drive future improvements in pasture integration.

YOURAN DAIRY (09858) rose nearly 5% at the close of trading, rising 4.84% to HK$4.98 as of the time of drafting, with a turnover of HK$1.08 billion. In terms of news, YOURAN DAIRY recently announced a share placement in a "old first, new later" manner, along with a special authorization for subscription, raising a total of approximately HK$2.33 billion, equivalent to about RMB 2.07 billion. The majority of this funding comes from its major shareholder Yili. After the transaction is completed, Yili's stake in YOURAN DAIRY will increase from 33.93% to 36.07%. Cathay Haitong released a research report stating that the company's net proceeds from this fundraising are HK$2.33 billion, which will be used to repay loans and for digital transformation construction. The company will continue to drive cost reduction, efficiency improvement, and asset structure optimization. In addition, the acquisition of assets at the bottom of the cycle has a high cost-effectiveness, and the company may further integrate and optimize its ranch layout in the future.