Shanghai Milkground Food Tech, a Chinese cheese products maker, is pursuing dairy acquisition opportunities across mainland China, Southeast Asia and the Middle East, President Kuai Yulong said.

The CNY 10.17bn (USD 1.51bn)-market cap company, backed by dairy giant China Mengniu Dairy, sees acquisitions as part of its strategy to expand across the dairy value chain and strengthen its presence in domestic and overseas markets, Kuai said on the sidelines of a media event in Hong Kong last week.

It is targeting high-quality upstream and downstream assets with established brands and strong distribution capabilities, which could include suppliers of butter and fresh cream, as well as dairy products distributors, he said.

The company is open to various deal sizes and structures, depending on the circumstances of each transaction, he said.

Mengniu owns around 37.8% of the Shanghai-listed Milkground, according to the latter’s latest interim report.

Apart from acquisitions, Milkground is also seeking other growth opportunities outside mainland China, Kuai said.

The company formed a strategic partnership with DKSH, a Swiss market expansion services provider, to launch its cheese products in Hong Kong, marking the first step in its broader international expansion plan, according to a company announcement dated 26 August.

The company plans to use Hong Kong as a base to expand into Macau, Central Asia and Mongolia, before growing its presence in Southeast Asia, including Thailand, Malaysia and Singapore, and subsequently entering the Middle East, with Saudi Arabia as a key market. It has already operated in Thailand, Singapore, Vietnam and Mongolia, and has entered into a partnership agreement with a dairy industry leader in Saudi Arabia, as per the same announcement.

Back in February 2026, Milkground signed a memorandum of understanding (MoU) with Saudi Arabia’s Saudia Dairy & Foodstuff Company (SADAFCO) to co-develop the children’s cheese snack market in the kingdom, as disclosed.

Milkground offers nearly 100 cheese stock-keeping units (SKUs), including cheese sticks, cheese slices, mozzarella and mousse cheese cups, and operates six production bases across mainland China, according to its website.

The company reported a net profit attributable to shareholders of CNY 151.2m on a revenue of CNY 3.3bn for the six months ended June 2026, as per its latest interim report.