Hongmian Zhihui Flags Uncertainty in Short-Term Earnings Linked to El Nino and Sugar Output Risks

Stock News
Sep 09

Hongmian Zhihui Science And Technology Innovation Co., Ltd. Guangzhou (SZ: 000523) has issued a statement addressing a notable surge in its stock price. Over two consecutive trading days, September 8 and September 9, 2026, the company's closing price saw an accumulated deviation exceeding 20%, which, according to regulations set by the Shenzhen Stock Exchange, constitutes abnormal trading activity.

In the first half of 2026, the company's sugar business generated approximately RMB 725 million in revenue, accounting for 68.07% of its total operating income. To date, the company's sugar-related operations continue to function normally.

Nevertheless, the company has cautioned that several external factors could introduce variability to its near-term financial performance. These factors include the recent uptick in international raw sugar prices and the potential for major sugar-producing countries to experience reduced output due to El Nino weather patterns. The company notes that the impact of these developments on its short-term operating results remains subject to a degree of uncertainty.

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