Core Insights - Baolong Chuangyuan (605016) reported a revenue of 969 million yuan for the first three quarters of 2025, representing an 18.10% year-on-year increase, and a net profit of 265 million yuan, up 44.93% year-on-year [1] - The growth in performance is attributed to product structure optimization and the release of production capacity from projects including 30,000 tons of soluble dietary fiber and 15,000 tons of crystalline sugar [1] - The functional sugar industry is experiencing a recovery in profitability, with the approval of allulose as a legal food additive in China marking a new competitive phase in the sector [1] Company Developments - Baolong Chuangyuan is one of the main producers of allulose in China, currently having a production capacity of 15,000 tons and plans to add another 20,000 tons at a health factory in Thailand [1] - Other companies in the A-share market, such as Baolingbao (002286), Sanyuan Biological (301206), and Huakang Co., Ltd. (605077), are also expanding their capacities in the allulose sector [2] - Baolingbao plans to complete a technical transformation project for allulose with an annual capacity exceeding 5,000 tons by 2024, and will start a second-phase expansion project of 20,000 tons in March 2025 [2] Industry Trends - The potential market size for allulose in China is estimated to reach 142 million USD, which is about 15% of the current alternative sweetener market [1] - The entry of allulose into the market is expected to reshape the competitive landscape of the high-end alternative sweetener market in China [1] - Despite the promising outlook for the industry, there are concerns regarding market promotion uncertainties and the risk of price wars due to increasing production capacity from various companies [2]