Company Overview - Yisheng Biological Co., Ltd. was established in 1989, focusing on the breeding and promotion of high-quality livestock and poultry breeds, particularly broiler chickens and pigs [1] - The company is the largest ancestor broiler chicken breeding enterprise in China and Asia, holding approximately one-third of the domestic imported breeding chicken market [1] - Yisheng has established breeding farms in seven provinces, maintaining its leading position in the ancestor broiler chicken industry while expanding parent stock chicken production [1] Quality Improvement Initiatives - The company has implemented a source purification strategy to eliminate diseases such as avian leukosis and chicken coryza, becoming the first certified avian leukosis purification demonstration farm in China [2] - The self-bred "Yisheng 909" small white feather broiler chicken has been recognized as a national livestock and poultry new variety, noted for its high purification level and low feed-to-meat ratio [2] - Yisheng has established a core breeding pig farm since 2000, certified as a national core breeding farm, with plans to increase high-quality pig supply starting from the end of 2023 [2] Industry and Policy Context - The 2024 guidelines from the National Health Commission aim to enhance public health and reduce obesity rates, promoting chicken as a preferred protein source due to its high protein and low fat content [3] - The 2025-2030 Food and Nutrition Development Outline emphasizes optimizing poultry meat production and consumption, with a target to reduce feed consumption by over 0.2 kg per kg of animal product by 2030 [3] - China's per capita meat consumption reached over 70 kg in 2024, with poultry consumption still below half of that in developed countries, indicating a significant growth opportunity for white meat [4] Market Trends and Projections - The pet food market is expanding, with chicken being a key ingredient, which is expected to boost chicken consumption [6] - The development of prepared dishes is extending the market for white feather chicken, driving demand for processed chicken products [6] - Yisheng anticipates an increase in parent stock chicken sales in 2025, with a projected volume of approximately 660 million chicks [11] Pricing and Supply Dynamics - The company expects a tight supply of quality parent stock chicken in the second half of 2025 due to a significant decrease in the import of ancestor broiler chickens [10] - The price of parent stock chicken is projected to rise, with recent quotes at 45 RMB per set in May and 50 RMB in June 2025 [9] - The company has imported 36,000 sets of ancestor broiler chickens in March and May 2025, with a total of 18,000 sets in April [12] Financial and Strategic Plans - Yisheng has repurchased 10,686,900 shares, totaling approximately 98 million RMB, to support employee stock ownership plans [12] - The company emphasizes sustainable development while focusing on shareholder returns and plans to continue sharing growth benefits with investors [12]