Migao Group Holdings (9879) H1 24/25 earnings summary

Executive summary

• 6MFY2025 revenue rose 69.5% YoY to RMB2,128.2m, driven by an 87.9% increase in sales volume to 1.037m tonnes.

• Profit increased 23.0% to RMB75.3m, while basic EPS fell 5.3% to RMB0.089.

• Gross margin contracted to 8.7% from 14.0%, mainly due to lower KCL margins.

Financial highlights

• Revenue increased 69.5% to RMB2,128.2m; cost of goods sold rose 80.1% to RMB1,943.7m.

• Gross profit rose to RMB184.6m from RMB176.4m; profit before tax was RMB91.9m versus RMB76.6m.

• Profit attributable to owners was RMB80.7m, with a RMB5.3m loss attributable to non-controlling interests; basic and diluted EPS were RMB0.089.

• G&A expenses increased 30.1% to RMB63.1m and finance costs rose 12.2% to RMB10.8m; no listing expenses were incurred, versus RMB11.0m in 6MFY2024.

Outlook and guidance

• Priorities include product innovation, broader offerings, new markets, improved efficiency and customer satisfaction.

• Capacity and technology investments aim to serve emerging overseas markets and support growth in China and Asia.

• A Vietnam facility is planned in Phu My Town, Ba Ria-Vung Tau; a site sublease MOU is signed and local approvals are being pursued following an in-principle application in August 2024.

• Vietnam proceeds are expected to be used by 31 March 2027; funds for Heilongjiang construction and equipment upgrades are expected to be used by 31 March 2026.