Core Viewpoint - Yisheng Co., Ltd. reported a significant decline in its half-year performance, with revenue dropping to 1.32 billion yuan, a year-on-year decrease of 4.0%, and net profit plunging by 96.6% to 6.16 million yuan, indicating severe challenges in the poultry industry despite a generally favorable market environment [2][3][6]. Financial Performance - The company's revenue for the first half of 2025 was 1.32 billion yuan, down 4.0% from the previous year [2][4]. - Net profit fell to 6.16 million yuan, a decrease of 96.6% year-on-year, while the net profit excluding non-recurring items was 3.37 million yuan, down 98.2% [2][4]. - Operating cash flow was reported at 1.43 billion yuan, a decline of 35.5% compared to the previous year [2][4]. - In Q2, revenue was 698 million yuan, showing a slight increase of 1.4% year-on-year, but net profit still fell by 73.8% [2][3]. Business Segment Performance - Revenue from chicken sales decreased by 16.48% to 1.01 billion yuan, while revenue from pig sales increased by 128.73% to 204 million yuan [3][6]. - The decline in chicken prices significantly impacted the core business, revealing the company's vulnerability to market cycles [3][6]. Investment Projects - Several investment projects did not meet expectations, including the termination of the 3,600-head breeding sow project and delays in the completion of other projects, which contributed to the company's weak performance [6][8]. - The company acknowledged that the low prices of chicken seedlings during the reporting period hindered expected benefits from its investment projects [6][8]. Industry Context - The poultry industry is experiencing a downturn, with many companies facing similar challenges. In contrast, some companies in the deep processing sector are seeing significant growth [11][12]. - The average market price for white feather broilers is estimated to have dropped by 6.96% year-on-year, reflecting an oversupply situation in the market [13][15]. - The overall market conditions have led to increased inventory levels and cautious purchasing behavior among traders, further pressuring prices [15][17]. Financial Health - The company's gross profit margin has fallen to 12.14%, nearly halving year-on-year, while the cost of sales has risen to 87.86%, marking one of the highest levels in three years [17]. - Accounts receivable increased by 27.41%, and cash flow has been declining for a consecutive year, indicating tightening liquidity [17]. - Short-term borrowings reached a historical peak of 2.199 billion yuan, with long-term borrowings at 107 million yuan [17].