Core Viewpoint - The U.S. Department of Commerce has made a preliminary ruling on countervailing duties for erythritol imported from China, impacting companies like Baolingbao and Sanyuan Biotech, which are adjusting their strategies in response to the investigation [1][2]. Company Responses - Sanyuan Biotech has acknowledged the impact of the U.S. investigation on its sales and is shifting its sales strategy to focus more on the domestic health consumer market while also exploring new markets in Southeast Asia, India, and the Middle East [1][3]. - Baolingbao, facing a lower anti-dumping tax rate of 34.4% from the EU, has seen a significant increase in revenue from erythritol products in Europe, with a 123% year-on-year growth in Q1 2025 [3]. Industry Challenges - The sugar substitute industry is facing multiple international trade challenges, including anti-dumping investigations from both the U.S. and the EU, with the EU imposing anti-dumping duties ranging from 34.4% to 233.3% [2][3]. - The domestic erythritol market is currently experiencing low prices, but the competitive landscape is easing, which may lead to a more stable supply-demand balance in the future [4]. Financial Performance - In 2024, Sanyuan Biotech reported revenues of 710 million yuan, a 42.7% increase year-on-year, and a net profit of 110 million yuan, up 87.5% [3]. - Baolingbao's revenue for the same period was 2.4 billion yuan, a decrease of 4.8%, but its net profit increased by 106% to 110 million yuan [3].