Summary of the Conference Call for Yisheng Livestock and Poultry Industry Overview - The poultry industry is currently facing challenges due to the impact of avian influenza in France, which is expected to keep the prices of parent stock chicks high in 2026. There is also potential for price increases in commercial chicks due to supply constraints caused by reduced imports and disruptions in new breed introductions since September 2025 [2][6][12]. Key Points Company Performance and Projections - Yisheng Livestock and Poultry accounted for over 40% of the national supply of grandparent stock chicks in 2025, indicating strong production capacity to meet sales targets for 2026. The expected sales volume for commercial egg chicks is around 1.6 billion [2][10]. - The company has implemented cost control measures, resulting in a parent stock cost of approximately 17 RMB and a commercial stock cost between 2.4 to 2.5 RMB [8][14]. - The company’s grandparent stock imports in 2025 were 266,000 sets, representing 43% of the national total, despite a 10% year-over-year decline in overall imports [4][22]. Market Dynamics - The domestic corn market is expected to have a loose supply-demand balance in 2026, while the soybean meal market is projected to be strong on the supply side but weak on demand. This overall stability is anticipated to have a limited impact on Yisheng's costs due to its upstream position in the supply chain [9]. - The price of parent stock chicks has been rising since September 2025, with current transaction prices exceeding 53 RMB. The expectation is that prices will continue to rise in 2026 due to supply constraints [7][12]. Export Trends - In 2025, China achieved its first year of chicken meat exports exceeding imports, with a nearly 40% year-over-year increase. This trend is expected to continue into 2026, supporting chicken prices [20]. - Chicken meat exports are primarily concentrated in high-demand international markets, with export prices generally higher than domestic prices due to limited supply [21]. Production Capacity and Future Plans - Yisheng currently has over 400,000 sets of grandparent stock and over 7 million sets of parent stock, operating at high capacity utilization. This positions the company well to meet the increased supply demands for 2026 [10]. - The company is also advancing in egg chicken research, with a new system showing over 90% egg production rate at 70 weeks, and plans to increase the scale of egg-type chicken output based on market conditions [10]. Challenges and Risks - The ongoing avian influenza situation in France poses a significant risk to supply chains, with no clear alternatives for sourcing from other countries like the U.S. or Europe [11]. - The supply of grandparent stock is currently insufficient to meet demand, with only about 60,000 sets available in the first four months of 2025, indicating a significant shortfall [22]. Conclusion Yisheng Livestock and Poultry is navigating a complex landscape influenced by avian influenza, supply chain challenges, and shifting market dynamics. The company is well-positioned to leverage its production capacity and market share, but must remain vigilant regarding external risks and market fluctuations.

Core Viewpoint - Yisheng Co., Ltd. (002458) has successfully completed the pilot phase of its egg-laying chicken research and expects to obtain new breed certification in the first half of this year, with plans to increase the stock of egg-laying chickens based on market demand [1] Company Summary - The production performance of the company's egg-laying chickens is reported to be very excellent, indicating strong demand for both parent stock and commercial egg-laying chicks domestically [1] - There is potential for the company to export its egg-laying chickens overseas, highlighting growth opportunities in international markets [1]

Group 1: Swine Sector - The proportion of small-sized pigs being sold has increased, with a focus on winter disease prevention. The average price of pigs in China as of the end of November is 11.63 yuan/kg, with a loss of 111 yuan per head for self-breeding and self-raising operations. The demand side shows an increase in slaughtering activities in northern regions due to lower prices, while southern markets are driven mainly by the Sichuan-Chongqing area, with a 3.39% week-on-week increase in daily slaughtering volume [1] - The overall proportion of small-sized pigs (under 90kg) being sold is 4.83%, which is an increase of 0.34% from the previous week. The industry is expected to see a reduction in production capacity under the influence of sustained low prices and policy guidance [1] Group 2: Poultry Sector - In the white chicken segment, the price of broiler chickens has slightly increased, while uncertainties remain regarding the import of grandparent stock due to past outbreaks of avian influenza in the US and New Zealand. The total quantity of grandparent stock is expected to decline, along with changes in breed structure [2] - For yellow chickens, supply may contract, and prices are highly sensitive to marginal changes in demand. The price of yellow feathered chickens is expected to improve marginally as consumption in the second half of the year is higher than in the first half [2] - The structure of egg-laying hens shows a coexistence of domestic and imported stock, but the actual production of imported stock is significantly higher. Due to the impact of avian influenza, the domestic import quantity is expected to shrink to 41,200 birds in 2025, indicating a shift from a loose to a tight supply [2] Group 3: Feed and Animal Health - The aquaculture and feed sectors have experienced a significant exit of small and medium-sized enterprises over the past two years, with expectations for a recovery in the variety of aquaculture feeds in the coming years [2] - In animal health, traditional vaccine competition is intense, and the profitability of companies is affected by the scale of farming and cyclical fluctuations. Innovation in research and development is becoming increasingly important, with anticipation for breakthroughs in major products like non-epidemic vaccines. The pet health market is expected to expand due to aging pets and increased spending per pet, with domestic products like the three-in-one vaccine for cats being introduced [2] Group 4: Market Performance - As of December 4, 2025, the CSI Livestock Breeding Index shows mixed performance among its constituent stocks, with Haida Group leading with a 1.44% increase, while Luoniushan leads the decline [3] - The latest price for the Livestock ETF is 0.64 yuan [3] Group 5: Index Composition - The CSI Livestock Index composition shows that swine breeding accounts for 36.41%, poultry breeding for 12.45%, and feed-related industries for 36.83%. The animal health sector accounts for 12.38% [4] - The top ten weighted stocks in the CSI Livestock Index include Muyuan Foods, Wens Foodstuff, Haida Group, New Hope, and others, collectively accounting for 65.6% of the index [4]

Core Viewpoint - The company emphasizes its commitment to sustainable development and quality improvement in response to national policies and market demands [1] Group 1: Company Strategy - The company adheres to a long-term strategy focused on optimizing the scale of the egg-laying chicken industry, flexible production, and structural adjustments [1] - The company aims to enhance product quality and achieve sustainable, healthy, and green development [1] Group 2: Industry Response - The company is responding to national policies aimed at controlling overproduction and promoting high-quality development in the industry [1] - The company is committed to improving its biosecurity system and implementing green, low-carbon farming practices [1]

Core Insights - Ningxia's listed companies have shown steady growth in performance, with a total revenue of 62.338 billion yuan in 2024, representing a year-on-year increase of 4.40%, and a net profit of 6.477 billion yuan, up 5.43% from the previous year [1] - The number of companies distributing cash dividends reached a historical high, with 9 companies disbursing a total of 3.689 billion yuan, marking a significant year-on-year increase of 41.85% [1] - The engagement between listed companies and investors has been enhanced through various initiatives, including cash dividends and share buybacks, which are expected to boost investor confidence [1][2] Company Performance - In 2024, 16 listed companies in Ningxia achieved a total operating income of 62.338 billion yuan and a net profit of 6.477 billion yuan, indicating a positive growth trend [1] - Ningxia Xiaoming Agricultural and Animal Husbandry Co., Ltd. plans to distribute a cash dividend of 2 yuan for every 10 shares, reflecting its strong market position with over 20% market share in the egg-laying chicken industry [2] Investor Engagement - The "Ningxia Listed Companies Investor Reception Day and 2024 Annual Performance Briefing" saw participation from nearly 100 executives, with 718 questions raised by investors and a response rate of 94.85% [2] - The Ningxia Securities Regulatory Bureau emphasized the importance of maintaining integrity and transparency in operations, encouraging companies to focus on core development and enhance market value [2]

Group 1: Financial Performance - The company achieved a revenue of CNY 971 million in 2024, representing a year-on-year increase of 16.83% [6][16] - The net profit attributable to shareholders reached CNY 44.81 million, up 128.95% compared to the previous year [6][16] - The company plans to distribute a cash dividend of CNY 0.2 per 10 shares for 2024 [10] Group 2: Market Dynamics and Product Strategy - The egg-laying chicken industry typically follows a three-year cycle, with seasonal peaks around the Mid-Autumn Festival and Spring Festival [3][5] - The company exports products to Mongolia, although the export revenue constitutes a small percentage of total sales [3] - The company is focused on optimizing its product structure and marketing strategies to adapt to changing market demands [14] Group 3: Future Growth and Development Plans - The company aims to enhance its core competitiveness through innovation in management, technology, and talent [17] - Future growth will be driven by increasing market share, improving product quality, and expanding into new markets [9][11] - The company is committed to sustainable development and enhancing its biosecurity and food safety measures [14][17] Group 4: Industry Trends - The egg-laying chicken industry is expected to see increased consolidation and a shift towards larger-scale farming operations [11][12] - There is a growing demand for new egg products and a focus on quality and branding in consumer preferences [12] - The industry is moving towards digitalization and requires a more skilled workforce [12]