According to the Wise News Finance app, Meg International Group (09879) fell nearly 9% in early trading, and as of the time of publication, it fell 3.99% to HKD 6.25 with a turnover of HKD 4.15 million.

On the news side, Meg International Group issued a profit warning, and the net income for the fiscal year ending March 31, 2024 is expected to be approximately RMB 256 million to RMB 280 million, a decrease of approximately 34% to 39% compared to the same period last year. The announcement stated that the net income for the first eight months of the fiscal year ending November 30, 2023 decreased by approximately 32% compared to the same period in the 2023 fiscal year, mainly due to the uncertainty of global potassium chloride (KCL) supply in the 2023 fiscal year, leading to higher market selling prices for potassium fertilizer products in that fiscal year.

In addition, in the last quarter of the 2024 fiscal year (the peak season for the Group's business), due to the continued weak market selling prices of potassium fertilizer products, the Group's net income did not rebound with the sales volume of potassium fertilizer products. In the last quarter of the 2024 fiscal year, the significant increase in the domestic market’s KCL supply had an adverse effect on the market selling price of potassium fertilizer products, thereby affecting the Group's net income.