Migao Group Holdings Limited provided consolidated earnings guidance for the year ended 31 March 2024. The net profit of the group for the year ended 31 March 2024 is estimated to range from RMB 256 million to RMB 280 million, representing a year-on-year decrease of approximately 34% to 39% as compared to that for the year ended 31 March 2023. Despite the Group's sales volume of the potash fertilizer products in fiscal year 2024 recorded an increase comparing to fiscal year 2023, the Group's net profit for fiscal year 2024 is expected to decrease due to the following reasons: as disclosed in the prospectus of the Company dated 13 March 2024, the Group's net profit for the eight months ended 30 November 2023 decreased by approximately 32% comparing to the same period of fiscal year 2023, primarily due to the high market selling price of potash fertilizer products during fiscal year 2023 as a result of global supply uncertainty of potassium chloride (KCL); and during the last quarter of fiscal year 2024 which was the peak season of the Group's business, the net profit of the Group did not rebound along with the sales volume of potash fertilizer products as the market selling price of potash fertilizer products remained weak.

According to the General Administration of Customs of the People's Republic of China, the import volume of KCL has increased by approximately 49% during the period from January 2024 to March 2024 comparing to the same period of last year. Such significant increase in the supply of KCL in the domestic market has adversely affected the market selling price of potash fertilizer products during the last quarter of fiscal year 2024, and thus affecting the net profit of the Group.