[2-Linked Cotton Stock: There is uncertainty about the impact of rising international raw sugar prices and El Niño climate that may lead to production cuts in major sugar-producing countries on the company's short-term operating performance] On September 9th, Red Cotton Stock (000523.SZ) issued an announcement of abnormal stock trading fluctuations. The company is concerned that some media have recently reported that international raw sugar prices have risen, and El Niño climate may lead to production cuts in major sugar-producing countries. The stock trading of listed companies related to the sugar industry is relatively active, and the company's stocks have therefore received more attention from the market. After the company’s self-examination, the relevant situation is explained as follows: The company’s sugar production business is carried out by its subsidiary Guangzhou Huatang Food Co., Ltd. The business model is to purchase raw sugar and ordinary first-grade white sugar as raw materials and sell them after refining and processing. The main products are “Red Cotton” brand refined white sugar, etc. The products are mainly used in food processing, catering and civilian consumption. In the first half of 2026, the company's sugar business achieved operating income of approximately 725 million yuan, accounting for 68.07% of the company's operating income. Up to now, the production and operation of the company's sugar business have remained normal. There is a certain degree of uncertainty in the impact of rising international raw sugar prices and the El Niño climate that may lead to production cuts in major sugar-producing countries on the company's short-term operating performance.