Wanxiang Doneed Co.,Ltd. (600371.SH) has issued a statement regarding unusual trading activity in its shares, addressing recent market speculation around climate phenomena.

The company acknowledged that heightened discussions on "super El Ni帽o" events have drawn attention to potential volatility in agricultural commodity prices, particularly for commercial corn. However, it clarified that its own operations, which focus on the research, development, production, and sale of corn seeds, sit at the upstream end of the agricultural value chain 鈥?a segment distinct from the commercial corn market itself.

Within the domestic corn seed industry, the company noted that the sector is currently undergoing an inventory de-stocking cycle. Supply continues to outpace demand across the market, intensifying competitive pressures and pushing seed prices downward. As a result, Wanxiang Doneed has experienced a decline in the gross margin of its corn seed business, reflecting the broader challenges facing the industry.