Group 1: Financial Performance - The company expects to achieve operating revenue of 3.46 billion to 3.76 billion yuan in the first half of 2025, representing a year-on-year growth of -0.89% to 7.71% [2] - Net profit attributable to shareholders is projected to be between 202 million and 232 million yuan, with a year-on-year growth of 102.33% to 132.38% [2] - The net profit after deducting non-recurring gains and losses is estimated to be between 174 million and 204 million yuan, reflecting a growth of 117.40% to 154.88% compared to the previous year [2] Group 2: Business Performance Drivers - The recovery in the cottonseed business is a major factor contributing to the company's turnaround [3] - The gross profit from plant extraction products such as chili red, chili essence, and stevia glycosides has increased year-on-year [3] - The company is actively expanding into new product categories, including natural sweeteners and essential oils, aiming to achieve a target of ten world-leading products [3] Group 3: Market Outlook and Strategy - The third quarter is expected to be a slow season, but the company anticipates continued growth in product sales, particularly for chili red and chili essence [4] - The company holds approximately two-thirds of the market share for chili red products, with plans to deepen competitive advantages and expand product applications [4] - The strategy focuses on increasing market share through cost-effective solutions rather than monopolistic pricing, capitalizing on the growth potential in developing countries [4] Group 4: Operational Insights - The company has established a robust risk management framework for its cottonseed business, leading to improved operational stability [4] - A highly educated R&D team and proprietary extraction processes contribute to competitive production costs [5] - The company has acquired farmland in Zambia for cultivation, benefiting from lower land and labor costs compared to domestic operations [5] Group 5: Future Growth Expectations - The plant extraction industry is projected to maintain rapid natural growth, with the company aiming to enhance its market position in core products while nurturing second-tier products [6] - The company plans to leverage its established reputation and strong financial position to ensure supply chain security for downstream customers [6]

Core Viewpoint - The natural pigment safflower yellow has significant applications in food, cosmetics, and pharmaceuticals, with a growing market size in China expected to reach 830 million yuan in 2024, reflecting a year-on-year increase of 23.88% [1][11]. Group 1: Industry Overview - Safflower yellow is a natural yellow pigment extracted from safflower petals, recognized for its safety and stability compared to synthetic dyes, aligning with modern consumer preferences for health and environmental sustainability [1][11]. - The pigment exhibits various pharmacological functions, including antioxidant and anti-inflammatory properties, which may aid in treating cardiovascular and inflammatory diseases [1][3]. - The extraction methods for safflower yellow include water extraction, organic solvent precipitation, and enzyme extraction, with the latter two methods yielding higher purity products [3][5]. Group 2: Industry Chain - The safflower yellow industry chain consists of three segments: upstream (safflower cultivation and supply of auxiliary materials), midstream (production and manufacturing of safflower yellow), and downstream (applications in pharmaceuticals, food, textiles, and cosmetics) [5]. Group 3: Market Demand and Trends - The demand for safflower yellow is expected to grow due to increasing consumer awareness of food safety and health, with applications expanding in food, pharmaceuticals, and cosmetics [18]. - Technological innovations in extraction methods and production processes are enhancing efficiency and reducing costs, contributing to the industry's growth [19][20]. - The competitive landscape is diversifying, with both domestic and international players vying for market share, necessitating continuous investment in research and development [21]. Group 4: Key Companies - Notable companies in the safflower yellow industry include Morning Light Bio-Technology Group, Yunnan Tonghai Yang's Natural Products Co., and Henan Zhongda Hengyuan Biotechnology Co., among others, which are primarily located in Hebei, Henan, Yunnan, and Hubei [2][13][14].