Shandong Yisheng Livestock & Poultry Breeding Co., Ltd.
2026 Semi-Annual Report
July 2026
Section I Important Notices, Table of Contents, and Definitions
The Board of Directors, the Board of Supervisors, and the directors, supervisors, and senior management of the Company guarantee that the information in this semi-annual report is true, accurate, and complete, and that there are no false records, misleading statements, or major omissions, and they assume individual and joint legal liability.
Company Person-in-Charge Cao Jisheng, Head of Accounting Lin Jie, and Head of the Accounting Department (Accounting Officer) Chen Xiaojun declare: We guarantee the truth, accuracy, and completeness of the financial report in this semi-annual report.
All directors attended the Board meeting to review this semi-annual report.
Forward-looking statements in this report, such as future plans and development strategies, do not constitute substantive commitments to investors. Investors and related parties should maintain sufficient risk awareness and understand the differences between plans, forecasts, and commitments.
The Company is required to comply with the disclosure requirements for "livestock, poultry, and aquaculture-related businesses" in the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3 — Industry Information Disclosure."
Major Risks in Company Operations
- Risk of dependence on foreign suppliers and their breeding technology
Currently, the world's primary chicken breeding sources are controlled by a few foreign breeding companies. Therefore, the Company has a certain degree of dependence on foreign suppliers for the introduction of grandparent broiler breeding stock. Once these suppliers reduce or stop the supply of breeding chicks due to disease or other reasons, and if there are no channels to import from other countries or no cooperation established with other breeding companies in the short term, it may have an adverse impact on the Company's normal production and operations.
- Risk of product price fluctuations
China's livestock and poultry product consumption market is vast, but market prices are frequently volatile due to factors such as supply and demand. The Company cannot guarantee that its product sales prices will not be affected by market price fluctuations. If the white-feather broiler industry encounters a downturn, market demand for livestock and poultry products is insufficient, and prices decline, it will have an adverse impact on the Company's business and operating performance.
- Risk of biosecurity
The livestock and poultry disease risks that the Company needs to prevent and control now and in the future are mainly divided into two categories: first, risks caused by diseases occurring in the Company's own livestock and poultry during the breeding process; second, risks caused by large-scale outbreaks of epidemics in the livestock and poultry breeding industry.
- Risk of raw material price fluctuations
Feed accounts for a certain proportion of the production cost of the Company's livestock and poultry products. Feed is mainly composed of corn, soybean meal, oils, and various nutritional additives, which are currently difficult to replace with other raw materials. With the further expansion of the Company's production scale, the procurement volume of raw materials such as corn and soybean meal will continue to increase. The prices of agricultural products such as corn and soybeans are significantly affected by domestic and international grain planting areas and regional climate factors. Once planting areas decrease significantly, climate anomalies occur, or major changes in national agricultural policies take place, it will lead to a reduction in agricultural production and trigger price increases, thereby increasing the Company's procurement costs. If the supply of major raw materials such as corn and soybean meal in the market is insufficient or prices rise significantly, it may affect the Company's future operating performance.