Angel Yeast Plans CNY 3.5B Convertible Bond, First Such Move to Expand Yeast Protein Capacity

September 24 — Angel Yeast Co., Ltd. (SH600298, closing price: 39.70 yuan, market cap: 34.452 billion yuan) announced on the evening of September 24 that it plans to issue convertible corporate bonds to unspecified investors, with total proceeds not exceeding 3.5 billion yuan.

This marks the company's first-ever convertible bond financing since its listing. After deducting issuance expenses, the funds will be allocated to several projects, including:

• Phase II of the Baiyang Biotechnology Park project in Yichang High-tech Zone
• Yichang Company's core technology research project for yeast protein
• Kekedala's annual 20,000-ton yeast product green manufacturing project
• Park factory's annual 60,000-ton flexible smart food ingredient manufacturing and supporting project
• Supplementary working capital

Several of these projects are directly aimed at expanding yeast protein production capacity. The company has identified yeast protein as a core strategic growth driver for the "15th Five-Year Plan" period.

80% of Funds Directed Toward Capacity Projects

According to the proposal, each bond will have a face value of 100 yuan, issued at par, with a term of six years, and will be listed on the Shanghai Stock Exchange. Total fundraising will not exceed 3.5 billion yuan. After deducting issuance costs, the funds will be invested in five major projects with a total investment of 3.771 billion yuan.

Breakdown of fund allocation:

• Baiyang Biotechnology Park Phase II (Yichang High-tech Zone): 955 million yuan, including:
• 875 million yuan for the annual 32,000-ton yeast protein and co-product green manufacturing project
• 80 million yuan for the annual 12,000-ton high-purity yeast protein and co-product core technology project
• Yichang Company yeast protein core technology project: 890 million yuan
• Kekedala annual 20,000-ton yeast product green manufacturing project: 775 million yuan
• Park factory annual 60,000-ton flexible smart food ingredient manufacturing project: 200 million yuan
• Supplementary working capital: 680 million yuan

Based on feasibility analysis, once completed, these projects are expected to add over 33,000 tons of yeast protein capacity per year, along with additional capacity for yeast extract and food ingredients. The company stated that the projects will rapidly boost its yeast protein capacity, aligning with its strategic goal of becoming "the world's top yeast company and a first-class international biotechnology company" during the "15th Five-Year Plan" period.

The company emphasized that this issuance focuses on its core business and rational financing, with investments closely tied to existing operations. There is no cross-industry or diversified investment involved. The plan is subject to shareholder approval, review by the Shanghai Stock Exchange, and registration approval by the China Securities Regulatory Commission.

Steady Growth and Full-Capacity Yeast Protein Production

Angel Yeast is a global leader in yeast and yeast derivatives, engaged in R&D, production, and sales of yeast, yeast derivatives, and related biological products. Its products are widely used in baking, fermented foods, seasonings, animal nutrition, microbial nutrition, human nutrition, and bio-manufacturing. The company's total fermentation capacity has reached 490,000 tons, with a 55% domestic market share and over 20% global market share, ranking second worldwide in yeast product scale.

In recent years, Angel Yeast has achieved steady revenue growth:

| Period | Revenue (billion yuan) | Net Profit (billion yuan) | |--------|------------------------|---------------------------| | 2023 | 13.585 | 1.273 | | 2024 | 15.197 | 1.325 | | 2025 | 16.729 | 1.544 | | H1 2026 | 9.187 | 0.881 |

In the first half of 2026, revenue grew 16.3% year-on-year, and net profit rose 10.21%.

Yeast protein is the company's third growth curve, following its core yeast business and yeast extract. In December 2023, China's National Health Commission included yeast protein in the new food ingredient catalog, making it the first approved protein raw material in the microbial field in China. Currently, the company's yeast protein production lines are running at full capacity, with downstream applications expanding from traditional health supplements and sports nutrition to food and beverages, and meat products.

The company has designated yeast protein as a core strategic growth driver for the "15th Five-Year Plan" period. The fundraising projects are centered on expanding yeast protein capacity, which will help optimize product structure, improve capacity utilization of food ingredient production lines, strengthen market position, and enhance overall competitiveness and risk resilience. This is expected to support future earnings growth and align with long-term development and shareholder interests.

The company noted that after the funds are in place, its cash, total assets, and net assets will increase accordingly. The financial cost of using the funds before conversion is relatively low. As bondholders gradually convert, the company's debt-to-asset ratio will decline, helping to optimize its capital structure and improve risk resistance.

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Cover image source: Liu Guomei