Cofco Sugar Industry announced that since October, under the influence of La Nina extreme weather, the company's sugar beet sugar enterprises Zhongliangtun he Bozhou Sugar Co., Ltd., Xinjiang Sifang Industrial Co., Ltd. and other companies during raw material harvest frequent rain and snow, especially on November 4-5, 2021, the northern Xinjiang region experienced the strongest cold wave weather process in nearly 45 years, in which the measured temperature of sugar beet plot in Zhaosu area of Yili was-27 ℃. The sudden drop in temperature has caused serious damage to the sugar beet raw materials of the sugar company owned by the company. According to preliminary statistics and verification, the disaster affected about 96000 mu of sugar beet (that is, unable to harvest or seriously damaged the quality of raw materials due to freezing), accounting for about 20% of the raw material area in the production season. The economic losses brought to the company will affect the company's net profit of 180 million to 300 million yuan this year (including direct losses and other possible losses caused by reduced sugar production, rising costs, abnormal wear and tear of harvester, etc.).
The following is the full text:
Announcement of Cofco Sugar holding Co., Ltd. on suffering from natural disasters
The board of directors and all directors of the Company guarantee that there are no false records, misleading statements or material omissions in the contents of this announcement, and bear individual and joint and several liability for the authenticity, accuracy and completeness of its contents.
Since October 2021, under the influence of La Nina extreme weather, the company's sugar beet sugar enterprises Zhongliangtun he Bozhou Sugar Co., Ltd., Xinjiang Sifang Industrial Co., Ltd. and other companies have frequent rain and snow during raw material harvesting. Especially on November 4-5, 2021, the northern Xinjiang region experienced the strongest cold wave weather process in nearly 45 years, in which the measured temperature of sugar beet plot in Zhaosu area of Yili was-27 ℃. The sudden drop in temperature has caused serious damage to the sugar beet raw materials of the sugar company owned by the company.
According to preliminary statistics and verification, the disaster affected about 96000 mu of sugar beet (that is, unable to harvest or seriously damaged the quality of raw materials due to freezing), accounting for about 20% of the raw material area in the production season. The economic losses brought to the company will affect the company's net profit of RMB 180 million to 300 million yuan this year (including direct losses and other contingent losses caused by reduced sugar production, rising costs, abnormal wear and tear of the harvester, etc.). The final actual loss shall be based on the audited financial report.
After the occurrence of the disaster, the company made every effort to organize disaster relief, launched disaster emergency plans, and carried out various forms of production self-rescue and other effective measures to minimize losses. At present, the rush to collect raw materials is still in progress.
Investors are respectfully invited to pay attention to the investment risk.
Cofco Sugar holding Co., Ltd.
18 November 2021