Migao Group Holdings (9879) H2 23/24 earnings summary

Executive summary

• FY2024 revenue fell 20.2% YoY to RMB3,770.5 million and profit fell 34.5% to RMB276.2 million, despite a 20.1% increase in total sales volume and production-service volume.

• Lower KCL and SOP selling prices weighed on revenue and gross margin; KCL import supply increased sharply in Q4, while product volumes grew and new customers added sales.

Financial highlights

• Revenue was RMB3,770.5 million vs RMB4,722.7 million in FY2023; gross profit was RMB536.5 million vs RMB767.5 million.

• Profit for the year was RMB276.2 million vs RMB421.5 million; profit attributable to owners was RMB252.5 million vs RMB405.1 million.

• Basic and diluted EPS were RMB0.37; basic EPS was RMB0.60 in FY2023, with no diluted EPS presented for that year.

• FY2024 included RMB40.3 million of listing expenses vs RMB20.9 million in FY2023, driven by IPO-related professional fees.

Outlook and guidance

• Priorities include product innovation, broader offerings and markets, operational efficiency, and investment in facilities and technology to expand capacity in China and Southeast Asia.

• Future material investment plans are primarily focused on production capacity and operational efficiency; no specific financial guidance was stated.