香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 派發末期股息的匯率 茲提述米高集團控股有限公司（「本公司」）日期為2025年6月26日的年度業績公告 （「該公告」），內容有關（其中包括）宣派截至2025年3月31日止年度的末期股息每 股普通股人民幣0.075元（「末期股息」）。除文義另有所指外，本公告中使用的詞彙 應與該公告所界定者具相同涵義。 末期股息以人民幣宣派，將於2025年10月10日以港元派發。根據人民幣1元兌 1.096924港元的匯率（即中國人民銀行於2025年8月26日（即除息日）所公佈人民 幣兌港元的中間匯率）計算，本公司欣然宣佈截至2025年3月31日止年度每股應付 末期股息的金額為0.082港元。 承董事會命 米高集團控股有限公司 主席兼執行董事 劉國才先生 香港，2025年8月26日 MIGAO GROUP HOLDINGS LIMITED 米高集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9879） 於本公 ...

開曼群島公司法（經修訂） MIGAO GROUP HOLDINGS LIMITED 米高集團控股有限公司 獲豁免股份有限公司 第二次經修訂及重訂 組織章程大綱及細則 （經於2025年8月22日通過的特別決議案採納） 1 開曼群島公司法（經修訂） MIGAO GROUP HOLDINGS LIMITED 米高集團控股有限公司 的 第二次經修訂及重訂 組織章程大綱 獲豁免股份有限公司 （經於2025年8月22日通過的特別決議案採納） 1 名稱 本公司名稱為Migao Group Holdings Limited米高集團控股有限公司。 2 註冊辦事處 本公司的註冊辦事處為Harneys Fiduciary (Cayman) Limited，地址為4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands，或董事會不時決定於開曼群島的其他地點。 5 股東的責任 各股東承擔的責任以其不時所持股份的未繳款項為限。 2 6 存續 3 宗旨及能力 在本組織章程大綱第8段的規限下 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 MIGAO GROUP HOLDINGS LIMITED 米高集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：9879） 於2025年8月22日舉行的股東週年大會的投票表決結果 米高集團控股有限公司（「本公司」）董事（統稱「董事」）會（「董事會」）欣然宣佈， 於2025年8月22日舉行之本公司股東週年大會（「股東週年大會」）上，所有就日期 為2025年7月25日之股東週年大會通告內所載各項提呈之決議案均以投票方式進 行表決。投票表決結果如下： | | 普通決議案 | 票數 （概約百分比） | | | --- | --- | --- | --- | | | | 贊成 | 反對 | | 1. | 省覽及批准本公司截至2025年3月31 日止年度之經審核綜合財務報表及董 | 814,872,000 (100.00%) | 0 (0.00%) | | | 事報告及核數師報告。 | | | | 2 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 米高集團控股有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09879 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | 10,000,000,000 | USD | | 0.01 | USD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | 10,000,000,000 | USD | | 0.01 | USD | | 100,000,000 ...

Financial Performance - Total revenue for FY2025 was approximately RMB4,966.0 million, a year-on-year increase of approximately 31.7% compared to FY2024's RMB3,770.5 million[16] - Profit for FY2025 was approximately RMB339.5 million, reflecting a year-on-year increase of approximately 22.9% from FY2024's RMB276.2 million[16] - Overall sales volume for FY2025 reached approximately 2,345,000 tonnes, representing a year-on-year increase of 35.2% from FY2024's 1,734,000 tonnes[18] - In FY2025, the Group's total revenue reached approximately RMB4,970 million, marking a 31.7% increase compared to the previous year[23] - The Group's net profit for FY2025 was approximately RMB340 million, reflecting a 22.9% growth year-on-year[23] - The overall sales volume of the Group's products increased to approximately 2.3 million tonnes, a rise of 35.2% from FY2024[23] - Sales of KCL increased by 38.1% to RMB4,372.9 million in FY2025, while sales of NOP surged by 204.0%[41] - Gross profit rose by approximately 19.7% to RMB642.0 million in FY2025, although the gross profit margin decreased to approximately 12.9% from 14.2% in FY2024[50] - The cost of goods sold increased by approximately 33.7% to RMB4,323.9 million in FY2025, consistent with the increase in overall sales volume[51] - Other income surged by approximately 121.7% to RMB20.4 million in FY2025, primarily due to an extra deduction of input value-added tax[57] Assets and Liabilities - Total assets as of March 31, 2025, were RMB5,246.5 million, an increase from RMB4,605.5 million as of March 31, 2024[14] - Total liabilities as of March 31, 2025, were RMB2,329.7 million, up from RMB1,989.8 million as of March 31, 2024[14] - Total equity as of March 31, 2025, was RMB2,916.7 million, compared to RMB2,615.7 million as of March 31, 2024[14] - Current assets amounted to approximately RMB4,447.7 million, with trade and other receivables and prepayments of approximately RMB3,180.4 million[78] - Current liabilities were approximately RMB2,161.9 million, primarily consisting of contract liabilities of approximately RMB764.8 million and trade and other payables of approximately RMB734.2 million[78] - The gearing ratio as of March 31, 2025, was approximately 21.3%, down from 22.3% as of March 31, 2024[85] - Total cash and restricted cash balances increased from approximately RMB964.5 million as of March 31, 2024, to approximately RMB973.6 million as of March 31, 2025[77] Dividends - The Board recommended a final dividend of RMB0.075 per share for FY2025[16] - The proposed final dividend for FY2025 is RMB0.075 per share, totaling approximately RMB68.2 million[100] - The Board has recommended a final dividend of RMB0.075 per share for FY2025, totaling approximately RMB68.2 million[105] Capital Expenditures and Investments - Capital expenditures for FY2025 were approximately RMB119.8 million, mainly for the construction and development of a warehousing and production center in Heilongjiang Province[86] - The Group's strategic investments aim to improve supply capacity and enhance its position in the agricultural industry[38] - The Group is exploring strategic business development opportunities in the Middle East as part of its long-term global growth strategy[39] Environmental and Social Responsibility - Carbon emissions decreased by approximately 9.0% compared to the previous year, achieving the established environmental goals for FY2025[21] - The Group achieved a 9.0% reduction in total carbon emissions in FY2025, aligning with national 'dual carbon' strategies[25] - The total charitable donations made by the Group in FY2025 were approximately RMB1.8 million, a decrease from RMB3.1 million in FY2024[127] - The Group has not noted any material non-compliance with relevant laws and regulations regarding environmental protection[123] Employee and Management Information - The total staff cost for FY2025 was approximately RMB84.9 million, an increase from approximately RMB66.3 million in FY2024[191] - The Group had a total of 428 employees as of March 31, 2025[191] - The Group maintains a good working relationship with employees and has not experienced any material labor disputes during FY2025[196] - The remuneration of Directors and senior management is determined by the Board based on operating results and market statistics[168] Future Plans and Developments - The construction of a modern storage and production center in Tongjiang, Heilongjiang Province, is progressing well, expected to enhance supply chain efficiency in Northeast China[20] - The company is advancing the planning and construction of production facilities in Vietnam, marking its entry into emerging Southeast Asian markets[20] - A new production facility in Vietnam is being planned, which will serve as a key hub for the Group's expansion into Southeast Asia[24] - The expected timeline for utilizing the net proceeds is subject to change based on future market conditions[150] Shareholder Information - As of March 31, 2025, Mr. Liu Guocai holds 675,000,000 shares, representing approximately 74.26% of the Company's total issued shares[181] - As of March 31, 2025, Migao Barbados holds 675,000,000 shares, representing approximately 74.26% of the company's total shareholding[184]

[Annual Results Announcement](index=1&type=section&id=%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A) This section presents the company's annual financial and operational performance for the fiscal year 2025, along with management's discussion and analysis, and corporate governance information [Financial Highlights](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For FY2025, the company reported a 31.7% increase in total revenue to RMB 4,966.0 million and a 22.9% rise in profit to RMB 339.5 million, with basic earnings per share decreasing by 8.1% to RMB 0.34 Key Financial Indicators for FY2025 | Indicator | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 4,966.0 | 3,770.5 | 31.7% | | Profit | 339.5 | 276.2 | 22.9% | | Basic Earnings Per Share | RMB 0.34 | RMB 0.37 | (8.1)% | - The Board recommends a final dividend of **RMB 0.075 per share**[5](index=5&type=chunk) [Operational Highlights](index=1&type=section&id=%E7%B6%93%E7%87%9F%E6%91%98%E8%A6%81) The company achieved significant business expansion in FY2025, with overall sales volume increasing by 35.2% to 2,345 thousand tonnes Sales Volume Overview for FY2025 | Indicator | 2025 (thousand tonnes) | 2024 (thousand tonnes) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales Volume (Overall) | 2,345 | 1,734 | 35.2% | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial position for the year ended March 31, 2025, detailing revenue, profit, assets, and liabilities - The Board announced the consolidated results for FY2025 and proposed amendments to the existing articles and adoption of new articles of association to comply with legal and regulatory requirements and enhance flexibility for general meetings[6](index=6&type=chunk) - Profit attributable to owners of the company for FY2025 was **RMB 307,471 thousand**, with basic earnings per share of **RMB 0.34**[7](index=7&type=chunk) - Total equity attributable to owners of the company as of March 31, 2025, was **RMB 2,730,707 thousand**[9](index=9&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For FY2025, revenue increased to RMB 4,965,954 thousand, gross profit rose to RMB 642,047 thousand, and profit for the year reached RMB 339,484 thousand, with basic earnings per share at RMB 0.34 Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 4,965,954 | 3,770,543 | | Cost of Sales | (4,323,907) | (3,234,039) | | Gross Profit | 642,047 | 536,504 | | Other Income | 20,400 | 9,218 | | Profit Before Tax | 413,373 | 333,604 | | Income Tax Expense | (73,889) | (57,410) | | Profit for the Year | 339,484 | 276,194 | | Profit for the Year Attributable to Owners of the Company | 307,471 | 252,479 | | Basic Earnings Per Share (RMB) | 0.34 | 0.37 | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2025, total assets less current liabilities increased to RMB 3,084,549 thousand, net current assets rose to RMB 2,285,790 thousand, and equity attributable to owners of the company grew to RMB 2,730,707 thousand Key Data from Consolidated Statement of Financial Position | Indicator | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current Assets | 798,759 | 744,984 | | Current Assets | 4,447,717 | 3,860,545 | | Current Liabilities | 2,161,927 | 1,822,093 | | Net Current Assets | 2,285,790 | 2,038,452 | | Total Assets Less Current Liabilities | 3,084,549 | 2,783,436 | | Equity Attributable to Owners of the Company | 2,730,707 | 2,448,276 | | Total Equity | 2,916,745 | 2,615,692 | | Non-current Liabilities | 167,804 | 167,744 | [Notes to the Financial Statements](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the Group's accounting policies, revenue composition, expenses, dividend policy, earnings per share calculation, receivables, payables, financial assets, and borrowings, providing supplementary information for understanding the financial statements - The company primarily engages in the production and trading of specialty potash fertilizers in China and was listed on the Main Board of the Stock Exchange on **March 21, 2024**[10](index=10&type=chunk)[11](index=11&type=chunk) - The Group has adopted several amendments to Hong Kong Financial Reporting Standards for the first time, including retrospective application of new accounting policies for classifying liabilities as current or non-current, which had no significant impact on other liability classifications[13](index=13&type=chunk)[17](index=17&type=chunk)[18](index=18&type=chunk) - The Group is assessing the detailed impact of HKFRS 18 'Presentation and Disclosure in Financial Statements', effective on or after **January 1, 2027**, on its consolidated financial statements[21](index=21&type=chunk) [General Information](index=5&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Michael Group Holdings Limited, incorporated in the Cayman Islands in 2017 and listed on the Stock Exchange in March 2024, primarily engages in specialty potash fertilizer production and trading in China, with financial statements presented in RMB - The company was incorporated in the Cayman Islands on **November 21, 2017**, and listed on the Main Board of the Stock Exchange on **March 21, 2024**[10](index=10&type=chunk) - The company and its subsidiaries primarily engage in the production and trading of specialty potash fertilizers in China[11](index=11&type=chunk) - The consolidated financial statements are presented in RMB, which is also the company's functional currency[12](index=12&type=chunk) [Application of New and Amended Hong Kong Financial Reporting Standards](index=5&type=section&id=%E6%87%89%E7%94%A8%E6%96%B0%E8%A8%82%E9%A6%99%E6%B8%AF%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E6%BA%96%E5%89%87%E6%9C%83%E8%A8%88%E6%BA%96%E5%89%87%E5%8F%8A%E5%85%B6%E4%BF%AE%E8%A8%82%E6%9C%AC) The Group adopted several HKFRS amendments this year, including those on sale and leaseback, liability classification, and supplier finance arrangements, with retrospective application for liability classification having no significant impact on other classifications, and is currently assessing the impact of HKFRS 18, effective in 2027 - The Group has adopted amendments to HKFRS 16 'Lease Liabilities in a Sale and Leaseback Transaction', HKAS 1 'Classification of Liabilities as Current or Non-current and Related Amendments to HK Interpretation 5', and 'Non-current Liabilities with Covenants' for the first time[13](index=13&type=chunk)[15](index=15&type=chunk) - The 2020 and 2022 amendments clarified that liability classification should be based on rights existing at the end of the reporting period, and future covenants do not affect liability classification at the reporting date[15](index=15&type=chunk)[16](index=16&type=chunk) - The Group is assessing the detailed impact of HKFRS 18 'Presentation and Disclosure in Financial Statements', effective on or after **January 1, 2027**, on its consolidated financial statements[21](index=21&type=chunk) [Revenue and Segment Information](index=8&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group's primary revenue streams are from specialty potash fertilizer sales and production services in China, with product sales significantly increasing in FY2025, led by potassium chloride, and operations concentrated in a single segment within China - The Group primarily recognizes revenue from the sale of specialty potash fertilizers and the provision of production services in China[22](index=22&type=chunk)[24](index=24&type=chunk) Revenue by Product or Service Category for FY2025 | Product or Service Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Potassium Chloride | 4,372,941 | 3,166,130 | | Potassium Sulfate | 464,500 | 438,190 | | Potassium Nitrate | 7,138 | 2,348 | | Compound Fertilizer | 65,767 | 53,446 | | Other Product Sales | 32,871 | 86,444 | | Provision of Production Services | 22,737 | 23,985 | | **Total** | **4,965,954** | **3,770,543** | - The Group operates in a single operating segment, with revenue, non-current assets, and business primarily derived from its activities in China[29](index=29&type=chunk) [Other Income](index=10&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income significantly increased by 121.7% to RMB 20,400 thousand in FY2025, primarily due to additional input VAT deductions Other Income Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Additional Input VAT Deduction | 13,902 | – | | Government Grants | 3,233 | 3,292 | | Bank Interest Income | 2,055 | 4,473 | | Rental Income | 527 | 844 | | Others | 683 | 609 | | **Total** | **20,400** | **9,218** | - The increase in other income was primarily due to an additional input VAT deduction of approximately **RMB 13.9 million** in FY2025[30](index=30&type=chunk) [Finance Costs](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs slightly increased by 2.0% to RMB 19,980 thousand in FY2025, mainly due to higher interest expenses on borrowings Finance Costs Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Borrowings | 19,805 | 14,262 | | Interest Expense on Loans from Related Companies | – | 4,865 | | Interest Expense on Lease Liabilities | 175 | 470 | | **Total** | **19,980** | **19,597** | [Income Tax Expense](index=11&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) Income tax expense increased to RMB 73,889 thousand in FY2025, primarily due to higher profit before tax and a fixed effective tax rate, with some Group entities benefiting from a 15% high-tech enterprise income tax rate Income Tax Expense Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China Corporate Income Tax | 75,270 | 57,048 | | Deferred Tax | (1,381) | 362 | | **Total** | **73,889** | **57,410** | - The standard corporate income tax rate in China is **25%**, with some high-tech enterprise-qualified subsidiaries enjoying a reduced tax rate of **15%**[33](index=33&type=chunk) [Dividends](index=13&type=section&id=%E8%82%A1%E6%81%AF) The Board recommended a final dividend of RMB 0.075 per ordinary share for FY2025, totaling approximately RMB 68.17 million, an increase from RMB 0.061 per share in FY2024 - The Board recommended a final dividend of **RMB 0.075 per ordinary share** for the year ended March 31, 2025 (2024: **RMB 0.061**)[35](index=35&type=chunk) Proposed Final Dividend | Fiscal Year | Dividend Per Share (RMB) | Total Amount (RMB thousand) | | :--- | :--- | :--- | | 2025 | 0.075 | 68,171 | | 2024 | 0.061 | 55,445 | [Earnings Per Share](index=13&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share for FY2025 were RMB 0.34, lower than RMB 0.37 in FY2024, primarily due to an increase in the weighted average number of ordinary shares used in the calculation Earnings Per Share Calculation | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the Year Attributable to Owners of the Company for Basic and Diluted EPS (RMB thousand) | 307,471 | 252,479 | | Weighted Average Number of Ordinary Shares for Diluted EPS | 908,578,566 | 682,438,525 | | Basic Earnings Per Share (RMB) | 0.34 | 0.37 | | Diluted Earnings Per Share (RMB) | 0.34 | 0.37 | [Trade and Other Receivables and Prepayments](index=14&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E4%BB%A5%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of March 31, 2025, total trade and other receivables and prepayments increased to RMB 3,239,693 thousand, driven by a significant rise in prepayments for inventories, with the majority of trade receivables due within 90 days Trade and Other Receivables and Prepayments Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables (Net of Allowance) | 312,322 | 159,074 | | Bills Receivable | 130,234 | 422,086 | | Prepayments for Inventories | 2,639,461 | 1,758,736 | | VAT Receivables | 42,799 | 50,169 | | Prepayments for Plant and Equipment | 49,561 | 57 | | Other Receivables, Deposits and Prepayments | 65,316 | 47,880 | | **Total** | **3,239,693** | **2,438,002** | - As of March 31, 2025, trade receivables due within **90 days** amounted to **RMB 111,030 thousand**, representing the largest portion[38](index=38&type=chunk) - As of March 31, 2025, the total carrying amount of receivables that were past due but not impaired was **RMB 132,216 thousand**[39](index=39&type=chunk) [Financial Assets Measured at Fair Value Through Profit or Loss](index=15&type=section&id=%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F%E4%B8%94%E5%85%B6%E8%AE%8A%E5%8B%95%E8%A8%88%E5%85%A5%E7%95%B6%E6%9C%9F%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of March 31, 2025, the Group held RMB 82,758 thousand in unlisted investment funds measured at fair value for short-term investments, which were fully redeemed post-period end Financial Assets Measured at Fair Value | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Unlisted Investment Funds | 82,758 | – | - The balance of unlisted investment funds as of March 31, 2025, was subsequently fully redeemed at an amount close to fair value[41](index=41&type=chunk) [Trade and Other Payables](index=16&type=section&id=%E8%B2%A3%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of March 31, 2025, total trade and other payables increased to RMB 734,213 thousand, primarily due to a significant rise in bills payable, while trade payables decreased Trade and Other Payables Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 47,366 | 129,991 | | Bills Payable | 485,170 | 219,940 | | Other Taxes Payable | 160,360 | 128,794 | | Payables for Plant and Equipment | 10,000 | 307 | | Amounts Due to Related Companies | 7,755 | – | | Accrued Employee Expenses | 3,829 | 4,252 | | Accrued Transportation Costs | 1,803 | 1,170 | | Accrued Issuance Costs and Listing Expenses | – | 18,480 | | Others | 17,930 | 16,581 | | **Total** | **734,213** | **519,515** | - As of March 31, 2025, bills payable due within **0 to 90 days** amounted to **RMB 191,600 thousand**[43](index=43&type=chunk) [Borrowings](index=17&type=section&id=%E5%80%9F%E6%AC%BE) As of March 31, 2025, the Group's total borrowings increased to RMB 582,344 thousand, mainly comprising bank and other loans, with most being secured, and interest rates ranging from 3.75% to 7.33% for fixed-rate and 2.30% to 4.90% for floating-rate borrowings Borrowings Details | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Loans | 314,990 | 320,800 | | Advances from Banks for Discounted Bills Receivable with Full Recourse | 115,271 | 116,015 | | Other Loans | 152,083 | 108,348 | | **Total** | **582,344** | **545,163** | - As of March 31, 2025, **RMB 513,594 thousand** of borrowings were secured, and **RMB 68,750 thousand** were unsecured[44](index=44&type=chunk) - Fixed-rate borrowings carried interest rates ranging from **3.75% to 7.33%**, while floating-rate borrowings ranged from **2.30% to 4.90%**[45](index=45&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides a detailed review of the Group's operating results and financial position for FY2025, covering business growth, revenue composition, cost control, profit drivers, liquidity, capital expenditure, future strategy, and corporate governance - For FY2025, the Group's overall sales volume and production services increased by **35.2%**, revenue grew by **31.7%**, and profit rose by **22.9%**[46](index=46&type=chunk) - The Group plans to drive future growth through innovation, expanding product offerings, exploring new markets, including establishing production facilities in Vietnam, and evaluating strategic business development opportunities in the Middle East[47](index=47&type=chunk) - The Group maintained sufficient bank balances and cash, with a current ratio of approximately **2.1** and a gearing ratio of approximately **21.3%**, indicating a stable financial position[65](index=65&type=chunk)[67](index=67&type=chunk) [Business Overview](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A6%BD) In FY2025, Michael Group, a leading Chinese potash fertilizer enterprise, achieved a 35.2% increase in overall sales volume and production services, with revenue and profit growing by 31.7% and 22.9% respectively, driven by its commitment to product quality and customer needs - For FY2025, the Group's overall sales volume and production services increased by approximately **35.2%**, from approximately **1.7 million tonnes** in FY2024 to approximately **2.3 million tonnes** in FY2025[46](index=46&type=chunk) - Revenue and profit for the year in FY2025 increased by **31.7%** and **22.9%** to approximately **RMB 4,966.0 million** and **RMB 339.5 million**, respectively[46](index=46&type=chunk) - The Group's potassium chloride procurement volume increased from approximately **1.5 million tonnes** in FY2024 to approximately **1.9 million tonnes** in FY2025, establishing well-developed procurement channels[46](index=46&type=chunk) [Future Outlook](index=19&type=section&id=%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) The Group plans to drive future growth through innovation, expanding product offerings, exploring new markets, including establishing production facilities in Vietnam and evaluating opportunities in the Middle East, and making strategic investments in new facilities and technologies to strengthen its position in the agricultural industry - The Group aims to drive growth through innovation and expanding product offerings, while continuing to explore new markets to support the growing global demand for efficient fertilizers[47](index=47&type=chunk) - The Group plans to establish a subsidiary in Vietnam to operate production facilities and meet the demands of emerging Asian markets[47](index=47&type=chunk) - The Group is evaluating and considering strategic business development opportunities in the Middle East, aligning with its long-term global growth strategy[47](index=47&type=chunk) [Revenue](index=20&type=section&id=%E6%94%B6%E5%85%A5) Total revenue for FY2025 increased by 31.7% to RMB 4,965,954 thousand, primarily driven by potassium chloride sales, which accounted for 88.1% of revenue, with state-owned enterprise customers contributing a 46.3% revenue increase and overall sales volume growing by 35.2%, including a 47.7% rise in potash fertilizer sales Revenue Details and Y-o-Y Change for FY2025 | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Potassium Chloride Sales | 4,372,941 | 3,166,130 | 38.1% | | Potassium Sulfate Sales | 464,500 | 438,190 | 6.0% | | Potassium Nitrate Sales | 7,138 | 2,348 | 204.0% | | Compound Fertilizer Sales | 65,767 | 53,446 | 23.1% | | Other Product Sales | 32,871 | 86,444 | (62.0)% | | Provision of Production Services | 22,737 | 23,985 | (5.2)% | | **Total** | **4,965,954** | **3,770,543** | **31.7%** | Revenue by Customer Category for FY2025 | Customer Category | 2025 (RMB thousand) | 2024 (RMB thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | State-owned Enterprises | 2,950,909 | 2,017,636 | 46.3% | | Non-state-owned Enterprises | 2,015,045 | 1,752,907 | 15.0% | | **Total** | **4,965,954** | **3,770,543** | **31.7%** | Sales Volume Details for FY2025 | Sales Category | 2025 (thousand tonnes) | 2024 (thousand tonnes) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Potash Fertilizer | 2,061 | 1,395 | 47.7% | | Compound Fertilizer | 83 | 83 | 0.0% | | Others | 201 | 256 | (21.5)% | | **Total** | **2,345** | **1,734** | **35.2%** | [Cost of Sales](index=21&type=section&id=%E9%8A%B7%E8%B2%A8%E6%88%90%E6%9C%AC) Cost of sales increased to RMB 4,323.9 million in FY2025, a 33.7% year-on-year rise, consistent with the increase in overall sales volume and production services - Cost of sales for FY2025 was approximately **RMB 4,323.9 million**, representing a year-on-year increase of approximately **33.7%**[52](index=52&type=chunk) - The increase in cost of sales was primarily consistent with the increase in the Group's overall sales volume and production services provided[52](index=52&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit increased by 19.7% to RMB 642.0 million in FY2025, but the gross profit margin decreased from 14.2% to 12.9%, mainly due to lower market prices Gross Profit and Gross Profit Margin Changes | Indicator | 2025 | 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB million) | 642.0 | 536.5 | 19.7% | | Gross Profit Margin | 12.9% | 14.2% | (1.3) percentage points | - The decrease in gross profit margin was primarily due to lower market prices for most of FY2025[53](index=53&type=chunk) [Other Income](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5_MDA) Other income significantly increased by 121.7% to RMB 20.4 million in FY2025, primarily driven by additional input VAT deductions - Other income for FY2025 was approximately **RMB 20.4 million**, representing a year-on-year increase of approximately **121.7%**[54](index=54&type=chunk) - The increase was primarily due to an additional input VAT deduction, which increased by approximately **RMB 13.9 million** in FY2025[54](index=54&type=chunk) [Other Gains and Losses](index=22&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E8%99%A7%E6%90%8D) Other gains and losses remained relatively stable in FY2025, with a gain of approximately RMB 5.5 million - Other gains and losses (net of reversals) remained relatively stable in FY2025, with a gain of approximately **RMB 5.5 million**[55](index=55&type=chunk) [Impairment Losses Under Expected Credit Loss Model (Net of Reversals)](index=22&type=section&id=%E9%A0%90%E6%9C%9F%E4%BF%A1%E8%B2%B8%E8%99%A7%E6%90%8D%E6%A8%A1%E5%BC%8F%E4%B8%8B%E7%9A%84%E6%B8%9B%E5%80%BC%E8%99%A7%E6%90%8D%EF%BC%88%E6%89%A3%E9%99%A4%E6%92%A5%E5%9B%9E%EF%BC%89) Impairment losses of approximately RMB 4.0 million were recognized in FY2025, mainly due to increased trade and unbilled receivables resulting from higher revenue - Impairment losses of approximately **RMB 4.0 million** were recognized in FY2025, primarily attributable to increased trade and unbilled receivables resulting from higher revenue[56](index=56&type=chunk) - A net reversal of impairment losses of approximately **RMB 2.6 million** was recognized in FY2024 due to a decrease in trade receivables balances[56](index=56&type=chunk) [Distribution and Selling Expenses](index=22&type=section&id=%E5%88%86%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E9%96%8B%E6%94%AF) Distribution and selling expenses slightly increased to RMB 32.0 million in FY2025, consistent with the rise in revenue - Distribution and selling expenses slightly increased to approximately **RMB 32.0 million** in FY2025, compared to approximately **RMB 30.1 million** in FY2024[57](index=57&type=chunk) [General and Administrative Expenses](index=22&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) General and administrative expenses significantly increased by 46.7% to RMB 137.0 million in FY2025, primarily due to higher travel expenses, salaries and benefits, and professional fees, aligning with business development - General and administrative expenses for FY2025 were approximately **RMB 137.0 million**, representing a year-on-year increase of approximately **46.7%**[58](index=58&type=chunk) - The increase was primarily due to higher travel expenses, salaries and benefits, and professional fees, consistent with the Group's business development[58](index=58&type=chunk) [Research and Development Expenses](index=22&type=section&id=%E7%A0%94%E7%99%BC%E9%96%8B%E6%94%AF) Research and development expenses increased by 12.6% to RMB 34.8 million in FY2025, reflecting the Group's continued investment in R&D activities - Research and development expenses for FY2025 were approximately **RMB 34.8 million**, representing a year-on-year increase of approximately **12.6%**[59](index=59&type=chunk) - The increase was due to the Group's continued investment in research and development activities[59](index=59&type=chunk) [Listing Expenses](index=22&type=section&id=%E4%B8%8A%E5%B8%82%E9%96%8B%E6%94%AF) No listing expenses were incurred in FY2025, compared to approximately RMB 40.3 million in FY2024 due to the listing - No listing expenses were incurred in FY2025, compared to approximately **RMB 40.3 million** in listing expenses incurred in FY2024[60](index=60&type=chunk) [Share of Results of Joint Ventures](index=23&type=section&id=%E6%87%89%E4%BD%94%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD%E6%A5%AD%E7%B8%BE) Share of losses from joint ventures significantly increased by 345.6% to RMB 26.7 million in FY2025, primarily due to reduced sales volume of fertilizer products and higher impairment losses on plant and equipment at joint ventures - Share of losses from joint ventures for FY2025 was approximately **RMB 26.7 million**, representing a year-on-year increase of approximately **345.6%**[61](index=61&type=chunk) - The increase in losses was primarily due to reduced sales volume of fertilizer products by joint ventures and an increase in the share of impairment losses on plant and equipment recognized by its joint ventures of approximately **RMB 17.4 million**[61](index=61&type=chunk) [Finance Costs](index=23&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC_MDA) Finance costs slightly increased by 2.0% to RMB 20.0 million in FY2025, mainly due to an overall increase in borrowings - Finance costs for FY2025 were approximately **RMB 20.0 million**, representing a year-on-year increase of approximately **2.0%**[62](index=62&type=chunk) - The increase was primarily due to an overall increase in the Group's borrowings in FY2025[62](index=62&type=chunk) [Income Tax Expense](index=23&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF_MDA) Income tax expense increased by 28.7% to RMB 73.9 million in FY2025, primarily due to higher profit before tax and a fixed effective tax rate - Income tax expense for FY2025 was approximately **RMB 73.9 million**, representing a year-on-year increase of approximately **28.7%**[63](index=63&type=chunk) - The increase was primarily attributable to higher profit before tax and a fixed effective tax rate[63](index=63&type=chunk) [Profit for FY2025](index=23&type=section&id=2025%E8%B2%A1%E5%B9%B4%E7%9A%84%E5%88%A9%E6%BD%A4) Net profit for FY2025 increased by 22.9% to RMB 339.5 million, driven by higher revenue and gross profit and reduced listing expenses, partially offset by increased administrative expenses and joint venture losses - Net profit for FY2025 was approximately **RMB 339.5 million**, representing a year-on-year increase of approximately **22.9%**[64](index=64&type=chunk) - The increase in profit was primarily due to higher revenue and gross profit, as well as reduced listing expenses[64](index=64&type=chunk) - The increase in profit was partially offset by higher general and administrative expenses and increased share of losses from joint ventures[64](index=64&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90) As of March 31, 2025, the Group's total cash and restricted cash increased to RMB 973.6 million, with a current ratio maintained at 2.1 and a gearing ratio stable at 21.3%, indicating a robust financial position, while total borrowings slightly increased, mainly related to sale and leaseback arrangements for machinery - As of March 31, 2025, total cash and restricted cash balances were approximately **RMB 973.6 million**, an increase from the previous year[65](index=65&type=chunk) - As of March 31, 2025, the current ratio was approximately **2.1**, consistent with the previous year[65](index=65&type=chunk) - As of March 31, 2025, the gearing ratio was approximately **21.3%**, a slight decrease from **22.3%** last year, maintaining stability[67](index=67&type=chunk) - As of March 31, 2025, total borrowings were approximately **RMB 582.3 million**, an increase from the previous year, primarily attributable to sale and leaseback arrangements for machinery leases[66](index=66&type=chunk) [Capital Expenditure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for FY2025 was approximately RMB 119.8 million, primarily allocated to the construction of the Group's warehousing and production center in Heilongjiang Province, China - Capital expenditure for FY2025 was approximately **RMB 119.8 million**[68](index=68&type=chunk) - Capital expenditure was primarily used for the construction and development of the Group's warehousing and production center in Heilongjiang Province, China[68](index=68&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of March 31, 2025, the Group had no significant contingent liabilities - As of March 31, 2025, the Group had no significant contingent liabilities[69](index=69&type=chunk) [Pledge of Assets](index=24&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of March 31, 2025, the Group's pledged plant and equipment, right-of-use assets, and restricted cash had a total carrying value of approximately RMB 451.3 million, serving as collateral for bills payable, letter of credit deposits, and sale and leaseback transactions - As of March 31, 2025, the total carrying value of the Group's pledged plant and equipment, right-of-use assets, and restricted cash was approximately **RMB 451.3 million**[70](index=70&type=chunk) - The pledged assets served as collateral for the Group's bills payable and/or letter of credit deposits and/or sale and leaseback transactions[70](index=70&type=chunk) [Future Plans for Material Investments and Capital Assets](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E5%8F%8A%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%88%83) Beyond disclosed plans, the Group has no other material investment and capital asset plans but will continue to explore value-added investment opportunities and focus on enhancing production capacity and operational efficiency - Except for those disclosed in the prospectus and this announcement, the Group has no other plans for material investments and capital assets[71](index=71&type=chunk) - The Group will continue to explore various value-added investment opportunities and future plans focused on enhancing production capacity and operational efficiency[71](index=71&type=chunk) [Material Investments, Significant Acquisitions and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E8%A6%81%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) In FY2025, the Group had no material investments, significant acquisitions, or disposals of subsidiaries, associates, or joint ventures, other than those disclosed in this announcement - In FY2025, other than those disclosed in this announcement, there were no material investments held, nor any significant acquisitions or disposals of subsidiaries, associates, or joint ventures[72](index=72&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group is exposed to foreign exchange risk as some cash, bank balances, and financial assets are denominated in USD and HKD, but currently has no foreign currency hedging policy, with management continuously monitoring the risk - The Group is exposed to foreign exchange risk as some cash, bank balances, and financial assets measured at fair value are denominated in USD and HKD[73](index=73&type=chunk) - The Group currently has no foreign currency hedging policy, and management will continue to monitor foreign exchange risk[73](index=73&type=chunk) [Significant Events After Year-End](index=25&type=section&id=%E5%B9%B4%E6%9C%AB%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) No significant events occurred from March 31, 2025, up to the date of this announcement - No significant events occurred from **March 31, 2025**, up to the date of this announcement[74](index=74&type=chunk) [Use of Proceeds](index=25&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The net proceeds from the listing were approximately HKD 798.6 million, with the Board resolving in October 2024 to reallocate funds from the Sichuan production facility to Vietnam expansion and broaden equipment upgrade scope, utilizing HKD 223.575 million as of March 31, 2025 - Net proceeds from the listing were approximately **HKD 798.6 million**[75](index=75&type=chunk) - The Board resolved in **October 2024** to change the use of net proceeds, reallocating funds originally designated for the 'New Sichuan Production Facility' to 'Vietnam Expansion' and expanding the scope of 'Upgrading and Replacement of Equipment and Machinery'[75](index=75&type=chunk) Summary of Use of Net Proceeds (As of March 31, 2025) | Intended Use | Revised Net Proceeds Allocation (HKD thousand) | Amount Utilized in FY2025 (HKD thousand) | Unutilized Amount as of March 31, 2025 (HKD thousand) | Expected Timeline for Utilization | | :--- | :--- | :--- | :--- | :--- | | Heilongjiang Warehousing and Production Center | 360,975 | 114,285 | 246,690 | Before March 31, 2026 | | Vietnam Expansion | 196,459 | 5,882 | 190,577 | Before March 31, 2027 | | R&D Center | 113,403 | – | 113,403 | Before March 31, 2026 | | Upgrading and Replacement of Equipment and Machinery | 47,917 | 23,546 | 24,371 | Before March 31, 2026 | | General Working Capital | 79,862 | 79,862 | – | Not Applicable | | **Total** | **798,616** | **223,575** | **575,041** | | [Employees and Remuneration Policy](index=27&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of March 31, 2025, the Group had 428 employees, with total employee costs of approximately RMB 84.9 million in FY2025, offering basic salaries, performance bonuses, social security, merit-based promotions, and training programs - As of March 31, 2025, the Group had **428 employees**[77](index=77&type=chunk) - Total employee costs for FY2025 were approximately **RMB 84.9 million**, an increase from **RMB 66.3 million** in FY2024[77](index=77&type=chunk) - The Group implements a merit-based promotion mechanism, regularly assesses employee performance, and provides various training programs to improve performance[77](index=77&type=chunk) [Payment of Final Dividend](index=27&type=section&id=%E6%94%AF%E4%BB%98%E6%9C%AB%E6%9C%9F%E8%82%A1%E6%81%AF) The Board recommended a final dividend of RMB 0.075 per share for FY2025, totaling approximately RMB 68.2 million, expected to be paid by October 10, 2025, with no predetermined dividend payout ratio, subject to the Group's financial condition and Board discretion - The Board recommended a final dividend of **RMB 0.075 per share** for FY2025 to shareholders whose names appear on the company's register of members on **September 2, 2025**[78](index=78&type=chunk) - The total proposed final dividend is approximately **RMB 68.2 million**, expected to be paid on or before **October 10, 2025**[78](index=78&type=chunk) - The company has no predetermined dividend payout ratio, and the dividend amount will be at the discretion of the Directors, depending on the Group's future operations, profitability, capital requirements, and other factors[78](index=78&type=chunk) [Annual General Meeting](index=27&type=section&id=%E8%82%A1%E6%9D%B1%E9%80%B1%E5%B9%B4%E5%A4%A7%E6%9C%83) The Annual General Meeting will be held on August 22, 2025, with share transfer registration suspended from August 19 to 22, 2025, to determine attendance and voting rights, and from August 28 to September 2, 2025, to determine eligibility for the final dividend - The Annual General Meeting will be held on **Friday, August 22, 2025**[79](index=79&type=chunk) - To determine shareholders' entitlement to attend and vote, the share transfer registration will be suspended from **August 19, 2025, to August 22, 2025**[80](index=80&type=chunk) - To determine shareholders' entitlement to the proposed final dividend, the share transfer registration will be suspended from **August 28, 2025, to September 2, 2025**[80](index=80&type=chunk) [Corporate Governance Code](index=28&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%88%99) The company is committed to good corporate governance, complying with the Corporate Governance Code in FY2025 except for the Chairman and CEO roles being held by the same individual, an arrangement the Board believes ensures leadership consistency and efficient strategic planning with sufficient checks and balances - The company has adopted the code provisions set out in the Corporate Governance Code as its code of corporate governance practices[81](index=81&type=chunk) - For FY2025, the company has complied with the relevant code provisions, except for a deviation from code provision C.2.1 of the Corporate Governance Code (separation of roles of Chairman and Chief Executive Officer)[81](index=81&type=chunk)[82](index=82&type=chunk) - The Board believes that Mr. Liu Guocai serving as both Chairman and Chief Executive Officer ensures consistent leadership within the Group and provides more effective and efficient overall strategic planning, with sufficient checks and balances within the Board[82](index=82&type=chunk) [Standard Securities Dealing Code for Directors of Listed Issuers](index=29&type=section&id=%E4%B8%8A%E5%B8%82%E7%99%BC%E8%A1%8C%E4%BA%BA%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%88%99) The company has adopted the Standard Code as the code of conduct for directors' securities transactions, and all directors confirmed compliance with the code in FY2025 - The company has adopted the Standard Code as the code of conduct for directors' securities transactions[83](index=83&type=chunk) - All Directors confirmed compliance with the required standards set out in the Standard Code throughout FY2025[83](index=83&type=chunk) [Audit Committee](index=29&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%91%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors with Ms. Qing Meyerson as Chair, reviewed the FY2025 consolidated annual results, confirming compliance with accounting principles and discussing audit, internal control, and financial reporting matters - The Audit Committee comprises three independent non-executive directors, with Ms. Qing Meyerson as Chair[84](index=84&type=chunk) - The Audit Committee has reviewed the company's consolidated annual results for FY2025 and confirmed compliance with applicable accounting principles, standards, and requirements, as well as adequate disclosure[84](index=84&type=chunk) [Scope of Work of the Company's Auditor](index=29&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%A0%B8%E6%95%B8%E5%B8%AB%E7%9A%84%E5%B7%A5%E4%BD%9C%E7%AF%84%E7%95%8C) The Group's auditor, Deloitte Touche Tohmatsu, verified that the financial figures in the annual results announcement align with the audited consolidated financial statements, but this work does not constitute an assurance engagement, thus no opinion or assurance conclusion was expressed - The Group's auditor, Deloitte Touche Tohmatsu, has verified that the figures published in the annual results announcement for the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes for FY2025 are consistent with the audited consolidated financial statements[85](index=85&type=chunk) - The auditor's work does not constitute an assurance engagement, and therefore no opinion or assurance conclusion was expressed on this announcement[85](index=85&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=29&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) In FY2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and no treasury shares were held as of March 31, 2025 - In FY2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[86](index=86&type=chunk) - As of March 31, 2025, the company did not hold any treasury shares[86](index=86&type=chunk) [Publication of Annual Results Announcement and Annual Report](index=29&type=section&id=%E5%88%8A%E7%99%BC%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E5%B9%B4%E5%A0%B1) The annual results announcement has been published on the Stock Exchange and company websites, and the annual report will be published on the same websites and dispatched to shareholders who opted for printed versions in due course - The annual results announcement has been published on the Stock Exchange website and the company's website[87](index=87&type=chunk) - The annual report for the year ended March 31, 2025, will be published on the same websites in due course and dispatched to shareholders who have indicated their preference for receiving printed versions[87](index=87&type=chunk) [Proposed Amendments to Existing Articles and Proposed Adoption of New Memorandum and Articles of Association](index=30&type=section&id=%E5%BB%BA%E8%AD%B0%E4%BF%AE%E8%A8%82%E7%8F%BE%E6%9C%89%E7%B4%B0%E5%88%87%E5%8F%8A%E5%BB%BA%E8%AD%B0%E6%8E%A1%E7%B4%8D%E6%96%B0%E7%B5%84%E7%B9%94%E7%AB%A0%E7%A8%8B%E5%A4%A7%E7%B6%B1%E5%8F%8A%E7%B4%B0%E5%88%99) The Board proposes a special resolution to adopt new memorandum and articles of association to amend the existing articles, aiming to allow hybrid general meetings, electronic voting, enhance efficiency in corporate communications, and ensure compliance with Listing Rules and the Companies Ordinance - The Board proposes to present a special resolution to shareholders for the adoption of new memorandum and articles of association to amend the existing articles[88](index=88&type=chunk) - The proposed amendments aim to explicitly allow the company to hold general meetings in a hybrid format, provide for electronic voting, and enhance the efficiency of disseminating corporate communications electronically[88](index=88&type=chunk) - The proposed amendments will modernize the new articles, enhancing clarity and flexibility to comply with the Listing Rules and the Companies Ordinance[88](index=88&type=chunk) [Definitions](index=31&type=section&id=%E9%87%8B%E7%BE%A9) This section provides definitions for key terms used throughout the announcement, ensuring readers have a clear understanding of specialized terminology - This section provides definitions for key terms used in the announcement, such as 'Annual General Meeting', 'Audit Committee', 'China', 'Company', and 'Compound Fertilizer'[89](index=89&type=chunk)[90](index=90&type=chunk) [Board Information](index=33&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E4%BF%A1%E6%81%AF) This section lists the Board members as of the announcement date, including executive directors Mr. Liu Guocai (Chairman and Executive Director), Mr. Sun Pingfu, Mr. Dong Benzi, and independent non-executive directors Mr. Chen Guofu, Ms. Huang Shasha, and Ms. Qing Meyerson - As of the announcement date, the Board includes executive directors Mr. Liu Guocai (Chairman and Executive Director), Mr. Sun Pingfu, and Mr. Dong Benzi[91](index=91&type=chunk) - Independent non-executive directors include Mr. Chen Guofu, Ms. Huang Shasha, and Ms. Qing Meyerson[91](index=91&type=chunk)

Investment Rating - The report does not explicitly state an investment rating for Migao Group [2][4]. Core Viewpoints - Migao Group is a leading potash fertilizer enterprise in China, established in June 2003, and listed on the Hong Kong Stock Exchange in March 2024 [2][4]. - The company primarily engages in the production, processing, and sale of potash fertilizer products, including potassium chloride, potassium sulfate, potassium nitrate, and compound fertilizers [2][4]. - The company ranks third in potash fertilizer sales in China and second among fertilizer companies without their own potash resources [2][4]. - The company benefits from rising potassium chloride prices due to reduced supply from major international producers [2][5]. - The company plans to expand its production scale through an IPO, raising approximately HK$799 million for various projects, including a new production facility in Vietnam [6][7]. Summary by Sections Company Overview - Migao Group is a leading player in the potash fertilizer industry in China, sourcing potassium chloride primarily through imports [2][4]. - The company has production facilities in key agricultural regions of China, including Heilongjiang, Jilin, Guizhou, and Guangdong [2][4]. Financial Performance - The company's operating income for FY22, FY23, and FY24 was RMB 3.84 billion, RMB 4.72 billion, and RMB 3.77 billion, reflecting year-on-year changes of +84.33%, +22.93%, and -20.15% respectively [5]. - Profit during the same period was RMB 397 million, RMB 422 million, and RMB 276 million, with year-on-year changes of +92.03%, +6.29%, and -34.48% respectively [5]. - The decline in FY24 revenue and profit was primarily due to falling potassium chloride prices [5]. Market Expansion - The company is actively expanding into overseas markets, particularly in Southeast Asia and South Asia, to meet the growing demand for quality fertilizers [7]. - A new production facility in Vietnam is planned, with an estimated construction cost of approximately RMB 265 million and expected annual sales of RMB 400-500 million [7].

Revenue and Profitability - Revenue for the six months ended September 30, 2024, was approximately RMB 2,128.2 million, a 69.2% increase from RMB 1,255.7 million in the same period of 2023[72]. - Profit for the period increased by approximately 23.0% to RMB 75.3 million, compared to RMB 61.3 million in the prior year[91]. - The overall sales volume of the Group's products increased by approximately 87.9% from about 552,000 tons in the six months of FY2024 to approximately 1,037,000 tons in FY2025[92]. - Sales of potassium chloride (KCL) reached RMB 1,911,006 thousand, a significant increase of 91.4% compared to RMB 998,593 thousand in the previous year[101]. - The cost of goods sold for 6MFY2025 was approximately RMB 1,943.7 million, reflecting an increase of approximately 80.1% from RMB 1,079.3 million in 6MFY2024[106]. - Gross profit for 6MFY2025 was approximately RMB 184.6 million, with a gross margin decrease to approximately 8.7% from 14.0% in 6MFY2024[104]. - The Group's total comprehensive income for the period was RMB 77.4 million, compared to RMB 54.8 million in the previous year, marking an increase of approximately 41.2%[72]. Expenses and Financial Performance - General and administrative expenses rose to RMB 63.1 million from RMB 48.5 million, an increase of approximately 30.2%[72]. - Finance costs increased to RMB 10.8 million from RMB 9.6 million, representing a rise of approximately 12.4%[72]. - The Group's income tax expenses increased by approximately 8.0% from approximately RMB 15.4 million in 6MFY2024 to approximately RMB 16.6 million in 6MFY2025[125]. - The Group's research and development expenses remained stable at approximately RMB 16.8 million in 6MFY2025, compared to RMB 16.9 million in 6MFY2024[108]. Assets and Liabilities - As of September 30, 2024, the Group had trade receivables totaling approximately RMB 96,203,000, a decrease from RMB 412,307,000 as of March 31, 2024[23]. - The Group's total liabilities included trade payables of RMB 117,069,000 as of September 30, 2024, compared to RMB 129,991,000 as of March 31, 2024[42]. - The Group's current assets amounted to approximately RMB 3,487.8 million, with a current ratio of 2.3[125]. - The Group's total bank balances and cash decreased from approximately RMB 812.3 million as of March 31, 2024, to approximately RMB 158.4 million as of September 30, 2024[125]. - The Group's borrowings decreased to approximately RMB 385.4 million as of September 30, 2024, down from RMB 545.2 million as of March 31, 2024[125]. - As of September 30, 2024, the Group's gearing ratio was approximately 15.4%, down from 22.3% on March 31, 2024, due to debt repayment and an increase in total equity attributable to the Company's owners[129]. Investments and Capital Expenditures - The Group incurred approximately RMB 34,476,000 on the addition of plant and equipment to expand and upgrade production plants in the PRC during the six months ended September 30, 2024[20]. - The Group invested US$42,000,000 (approximately RMB 298,330,000) in three unlisted investment funds for short-term investment purposes, recognizing a fair value gain of approximately RMB 6,334,000 during the six months ended September 30, 2024[25]. - For the six months ended September 30, 2024, the Group's capital expenditures were approximately RMB 97.3 million, primarily for the construction and development of a warehousing and production center in Heilongjiang Province, PRC[129]. - The Group's net proceeds allocation includes HK$360,975,000 (45.2%) for the construction of the Heilongjiang Warehousing and Production Centre, with HK$84,397,000 utilized so far[179]. Strategic Plans and Market Position - The Group aims to enhance its market share in the potash market by expanding its customer base and securing stable supply channels from major overseas producers[95]. - Strategic investments in new facilities and technologies are expected to improve supply capacity and meet rising global demand for high-efficiency fertilizers[96]. - The Group plans to establish a subsidiary in Vietnam to operate a production facility, currently securing local approvals[99]. - The Group plans to establish a subsidiary in Vietnam to meet emerging market demands, with a memorandum of understanding signed for leasing space in Phu My II Expansion Industrial Park[119]. - The Group continues to explore different investment opportunities focused on enhancing production capacity and operational efficiency[129]. Shareholder and Governance Matters - The Group declared a final dividend of RMB 0.061 per share for the year ended March 31, 2024, totaling RMB 55,445,000, which was paid in October 2024[13]. - No interim dividend was declared for 6MFY2025, consistent with 6MFY2024, which also had no dividend declared[164]. - The Audit Committee confirmed compliance with applicable accounting principles and standards for the unaudited interim results of 6MFY2025[172]. - The Company has complied with the Corporate Governance Code, except for the deviation from code provision C.2.1 regarding the roles of Chairman and CEO[166]. - The Board will continue to review and monitor corporate governance practices to maintain high standards[166]. Employee and Operational Metrics - As of September 30, 2024, the Group had a total of 440 employees, with total staff costs for the first half of FY2025 amounting to approximately RMB 31.2 million, a 15.2% increase from approximately RMB 27.1 million in the same period of FY2024[183][195]. - The Group's share of results from a joint venture decreased by approximately 50.0%, reducing the loss from RMB 6.9 million in 6MFY2024 to RMB 3.5 million in 6MFY2025[108].

Financial Performance - For the six months ended September 30, 2024, total revenue was approximately RMB 2,128.2 million, a year-on-year increase of about 69.5% compared to RMB 1,255.7 million for the same period in 2023[3]. - Profit for the six months ended September 30, 2024, was approximately RMB 75.3 million, representing a year-on-year increase of about 23.0% from RMB 61.3 million in 2023[3]. - Basic earnings per share for the six months ended September 30, 2024, was approximately RMB 0.089, a decrease of about 5.3% compared to RMB 0.094 in the same period of 2023[3]. - Total comprehensive income for the period was RMB 77.4 million, compared to RMB 54.8 million in the previous year, reflecting an increase of approximately 41.2%[6]. - Gross profit for the six months ended September 30, 2024, was RMB 184.6 million, slightly up from RMB 176.4 million in 2023[5]. - The group reported revenue of RMB 2,128,223,000 for the six months ended September 30, 2024, an increase from RMB 1,255,747,000 for the same period in 2023, representing a growth of approximately 69.2%[23]. - The group recognized revenue from production services amounting to RMB 2,126,908,000, compared to RMB 1,255,334,000 in the prior period, reflecting a growth of approximately 69.2%[25]. - The net profit for the six months ended September 30, 2024, was approximately RMB 75.3 million, a 23.0% increase from RMB 61.3 million in the previous year[68]. Revenue Sources - Potassium chloride sales contributed RMB 1,911,006,000 to the revenue, significantly up from RMB 998,593,000 in the previous year, marking an increase of about 91.2%[23]. - Potassium chloride and potassium sulfate sales accounted for approximately 89.8% and 9.1% of the total revenue, respectively[53]. Expenses and Liabilities - The group incurred a total tax expense of RMB 20,755,000 for the current period, compared to RMB 18,018,000 for the same period last year, indicating an increase of about 9.6%[28]. - The group’s interest expense on borrowings increased to RMB 10,709,000 for the current period from RMB 6,780,000 in the previous period, representing a rise of approximately 57.0%[27]. - The cost of goods sold for the six months ended September 30, 2024, was approximately RMB 1,943.7 million, an increase of about 80.1% from RMB 1,079.3 million in the previous year[54]. - Gross profit increased slightly from approximately RMB 176.4 million in 2023 to about RMB 184.6 million in 2024, but the overall gross margin decreased from about 14.0% to 8.7%[56]. Assets and Equity - Total assets as of September 30, 2024, were RMB 3,487.8 million, a decrease from RMB 3,860.5 million as of March 31, 2024[10]. - The company's equity attributable to owners was RMB 2,507.8 million as of September 30, 2024, compared to RMB 2,448.3 million as of March 31, 2024[11]. - Trade receivables as of September 30, 2024, amounted to RMB 172,586,000, up from RMB 159,074,000 as of March 31, 2024, indicating a growth of approximately 8.9%[40]. - The company’s total receivables, including trade and other receivables, reached RMB 2,605,435,000 as of September 30, 2024, compared to RMB 2,438,002,000 as of March 31, 2024, marking an increase of approximately 6.9%[40]. Investments and Capital Expenditures - The company invested USD 42,000,000 (approximately RMB 298,330,000) in three non-listed investment funds, with a fair value gain of approximately RMB 6,334,000 recognized in profit or loss for the six months ended September 30, 2024[44]. - Capital expenditures for the six months ended September 30, 2024, were approximately RMB 97.3 million, primarily for the construction of a storage and production center in Heilongjiang Province, China[72]. Market Position and Strategy - The company continues to focus on the production and trade of specialty potassium fertilizers in China, indicating ongoing commitment to its core business[14]. - The company continues to strengthen its position as a leading potassium fertilizer enterprise in China, leveraging over 20 years of operational experience in the industry[49]. - The group plans to establish a subsidiary in Vietnam to operate production facilities, aiming to meet the growing demand in emerging markets[50]. Employee and Governance - Employee costs for the first half of the 2025 fiscal year totaled approximately RMB 31.2 million, compared to RMB 27.1 million in the same period of the previous fiscal year[83]. - The company has 440 employees as of September 30, 2024, showing a slight decrease from 441 employees as of March 31, 2024[83]. - The company has adopted corporate governance practices to ensure transparency and accountability to shareholders[86]. - The board of directors is composed of experienced individuals, ensuring a balance of power and responsibilities within the board[90]. Risks and Compliance - The company faces foreign exchange risks due to holding cash and financial assets in USD and HKD, with no current hedging policy in place[76]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months of the 2025 fiscal year, ensuring compliance with applicable accounting principles[90]. - The company has confirmed that all directors are aware of and committed to their fiduciary duties[90].

Investment Rating - The report assigns an initial investment rating of "Buy" for Migao Group with a target price of 8 HKD, corresponding to a forecast PE multiple of 13.4 times for the fiscal year 2025 [5][4]. Core Insights - Migao Group is a leading potassium fertilizer company in China, primarily producing potassium chloride and potassium sulfate, which accounted for 83% and 12% of the revenue in the fiscal year 2024, respectively [1][22]. - The company's revenue for the fiscal year 2024 reached 3.77 billion, a year-on-year decline of 16%, while the net profit attributable to shareholders was 250 million, down 31% year-on-year [1][102]. - The report anticipates a recovery in potassium prices, which is expected to drive improvements in profitability, projecting revenues of 4.11 billion, 4.73 billion, and 5.48 billion for the fiscal years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 9%, 15%, and 16% [4][18]. Summary by Sections Company Overview - Migao Group has established six production bases in key agricultural regions of China, ensuring proximity to major customers and a robust transportation network [1][22]. - The company has strategic relationships with major clients such as Beidahuang and Guizhou Tobacco, maintaining partnerships for over 10 years with several other clients [1][34]. Market Position - According to Frost & Sullivan, Migao Group ranks fourth among potassium fertilizer companies in China by sales volume for 2023 and third among non-reserve potassium fertilizer companies [4][22]. - The global potassium fertilizer market is characterized by oligopolistic competition, with significant supply-demand mismatches, particularly in China, which relies heavily on imports for its potassium fertilizer needs [1][49]. Financial Performance - The report indicates that the average selling price of potassium chloride in the fiscal year 2024 was 2,530 RMB per ton, with a significant decline in prices impacting overall performance [72][100]. - The company's gross margin for the fiscal year 2024 was 14.2%, reflecting a decrease of 2.1 percentage points year-on-year, primarily due to falling potassium fertilizer prices [74][48]. Future Outlook - The report forecasts a compound annual growth rate (CAGR) of 2.2% for potassium chloride sales in China from 2023 to 2027, with expected sales volumes increasing from 16.53 million tons in 2023 to 18.05 million tons in 2027 [18][84]. - The anticipated growth in the potassium fertilizer market is driven by factors such as population growth, dietary changes, and supportive government policies [89][90].