Core Viewpoint - The company is focusing on high-value core products such as prebiotics, dietary fibers, and sugar-reducing sweeteners, which are expected to drive future growth and profitability [2][3][4]. Product Focus - The company's core products include prebiotics (oligomaltose, fructooligosaccharides, galactooligosaccharides), dietary fibers (polydextrose, resistant dextrin), and sugar-reducing sweeteners (erythritol, crystalline fructose, allulose) [2]. Gross Margin Improvement - The gross margin for the company's core products increased from 9.74% in 2023 to 15.84% in 2024, driven by optimized product structure, reduced consumption, and lower procurement costs [3][4]. - The gross margins for individual core products are as follows: prebiotics increased from 19.34% to 24.60%, dietary fibers from 12.64% to 18.12%, and sugar-reducing sweeteners from 1.26% to 9.09% [4]. Production Strategy - The company is implementing a "small, refined, and flexible" production model to cater to differentiated market demands, focusing on high-value, small-batch orders [6]. - The flexible production plan aims to enhance responsiveness to market needs and build competitive advantages through customized products [6]. New Product Development - The company is expanding its product line with high-value products such as DHA algae oil, lactulose, and HMOs, with production capacity already established for these new products [8]. - Strategic partnerships have been formed to ensure sales of new products, with ongoing projects in trial production stages [8]. Market Impact of Tariffs - Following the EU's imposition of anti-dumping duties on erythritol, the company has capitalized on being the lowest taxed entity, resulting in a 123% year-on-year increase in erythritol sales revenue in Q1 2025 [8]. Capacity Expansion - The company has been a pioneer in the domestic allulose market, with a production capacity exceeding 5,000 tons set to be expanded to 20,000 tons in the future [9]. Financial Performance - In Q1 2025, the company reported a revenue of 685 million yuan, a 24.23% increase year-on-year, and a net profit of 50.36 million yuan, up 117.35% year-on-year [10].

Group 1: Company Overview - The company specializes in the research, production, and sales of functional ingredients such as prebiotics, dietary fibers, and sugar-reducing sweeteners, aiming to be a global leader in functional ingredients and health food innovation [2] - The company has established a full industrial chain manufacturing system, meeting diverse procurement needs of downstream customers [2] Group 2: Financial Performance - In 2024, the company achieved a net profit of 111.16 million CNY, a year-on-year increase of 105.97%, and a net profit of 123.90 million CNY after deducting non-recurring gains and losses, up 254.56% [2] - Total revenue for 2024 was 2.40 billion CNY, a decrease of 4.84% due to the intentional reduction of low-value feed and by-product businesses, while core product revenue and profit saw significant growth [2] Group 3: Product Performance - Revenue from prebiotics in 2024 reached 334.99 million CNY, up 16.02%, with a sales volume of 36,000 tons, a 23.74% increase [2] - Dietary fibers generated 238.40 million CNY in revenue, a 14.52% increase, with a sales volume of 21,400 tons, up 14.39% [2] - Sugar-reducing sweeteners achieved 516.10 million CNY in revenue, a 29.73% increase, with a sales volume of 50,000 tons, up 41.66% [2] Group 4: Margin Improvement - The gross margin for core products improved from 9.74% in 2023 to 15.84% in 2024, with prebiotics' margin rising to 24.60%, dietary fibers to 18.12%, and sugar-reducing sweeteners to 9.09% [6] - Key reasons for margin improvement include optimized product structure, reduced production costs, and lower procurement costs [5] Group 5: Strategic Initiatives - The company is focusing on a "small, refined, and flexible" production model, targeting small-batch, high-value, and differentiated orders [8] - New product developments include DHA algae oil, lactulose, and HMOs, with production capacity expansions underway [9] Group 6: Market Impact - The EU's anti-dumping tax on erythritol, ranging from 34.4% to 233.3%, has led to a 123% year-on-year increase in sales revenue for the company's erythritol products in Q1 2025 [10] - The company does not anticipate significant impacts from U.S.-China trade tensions, as exports to the U.S. represent a small portion of total revenue [12]