Core Insights - The mulberry leaf extract industry in China is rapidly developing due to the increasing demand for natural plant extracts and the medicinal and health benefits of mulberry leaves [1][6][22] - China is one of the richest countries in mulberry resources, with a complete industrial chain extending from mulberry cultivation to high-value extracts [1][4] - The market size for mulberry leaf extract is projected to grow from 199.17 million yuan in 2024 to 217.65 million yuan in 2025, with an industry output value expected to reach 300.65 million yuan [1][6] Industry Definition and Classification - Mulberry leaves (Folium Mori) are the dried leaves of the mulberry plant, known for their medicinal properties, including clearing lung heat and improving vision [2] - The main functional components of mulberry leaf extract include polyphenols, flavonoids, alkaloids, and polysaccharides, which are associated with antioxidant capabilities [2][4] Current Development Status - The mulberry leaf extract industry has seen a steady increase in demand due to rising health awareness and preference for natural products, leading to market expansion [4][6] - The production capacity of mulberry leaf extract in China is expected to grow from 834 tons in 2024 to 892 tons in 2025, with production increasing from 563 tons to 598.4 tons [4][6] Industry Chain - The upstream of the mulberry leaf extract industry includes mulberry cultivation and extraction production equipment, with raw material costs accounting for over 90% of the total cost [8][10] - The downstream applications of mulberry leaf extract include pharmaceuticals, cosmetics, health products, and food and beverages [8] Industry Development History - The plant extraction industry in China has a long history, with significant advancements in extraction methods since the 1990s, leading to a golden development period in the 21st century [15] Competitive Landscape - The mulberry leaf extract industry exhibits a clear technological stratification, with leading companies using proprietary technologies to dominate the high-end market [17][19] - Major companies in the industry include Hunan Xier Natural Pharmaceutical Co., Ltd., Hunan Huakang Biotechnology Co., Ltd., and Guilin Rhine Biotechnology Co., Ltd. [17][19] Industry Development Trends - The demand for mulberry leaf extract is expected to grow as consumers increasingly seek natural and healthy products, particularly in the fields of medicine, food, and health supplements [22]

Market Position and Growth Potential - The company's main products, including chili red, chili extract, and lutein, currently hold a leading position in the global market, with significant growth potential ahead [2][3] - The chili red business commands an 80% market share globally, although the gross margin has declined due to high raw material costs in 2023 [8][9] International Expansion and Production Capacity - The company has established overseas production capabilities, including two factories in India and two farms in Zambia, with plans for further expansion in Myanmar [3][4] - The company aims to strategically develop processing capacity based on the growth of raw material bases [3] Financial Performance and Projections - In Q1 2025, the company anticipates a net profit of between 90 million and 120 million yuan, representing a year-on-year increase of 133.21% to 210.95% [4][5] - The herbal medicine business accounted for less than 2% of total revenue in 2024, indicating it is still in the early development stage [4][5] Competitive Advantages - The company has established competitive advantages through a focus on R&D, global layout, multi-product development, and integrated operations over its 20+ years in the plant extraction industry [4][5] - The company has developed a new production process for stevia sugar, achieving a 54% year-on-year revenue growth to 231 million yuan in 2024 [4][5] Industry Trends and Future Outlook - The plant extraction industry is expected to grow at a CAGR of 12.3% from 2022 to 2027, with the market size projected to reach 61.5 billion USD by 2027 [10][11] - The industry is experiencing a trend of increasing volume but decreasing prices, with a 21.3% increase in export volume to 134,000 tons in 2024, while total export value decreased by 7.7% to 3.01 billion USD [10][11]