Shandong Yisheng Livestock & Poultry Breeding Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Shandong Yisheng Livestock & Poultry Breeding Co., Ltd.

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd., established in 1996, has evolved into a leading player in the breeding and genetics sector of China's livestock industry. The company focuses primarily on poultry breeding, particularly chickens, and has expanded its operations to include feed production and hatchery services.

In 2005, Yisheng made a significant advancement by being recognized as a National Leading Enterprise in Agricultural Industrialization, reflecting its commitment to enhancing productivity in the agriculture sector.

By 2010, the company had reported revenue of approximately RMB 1.2 billion, indicating substantial growth driven by the increasing demand for poultry products in China. This growth trajectory continued, and in 2018, Yisheng reached an impressive revenue of RMB 3.6 billion.

In 2020, Yisheng's net profit saw a remarkable rise to RMB 546 million, showcasing robust operational efficiency amid industry challenges. The company produced over 200 million day-old chicks annually, establishing a strong market presence.

Yisheng has continuously invested in R&D, enhancing its breeding techniques to improve flock genetics. In 2021, their R&D expenditure was reported at RMB 150 million, reflecting a strategic focus on innovation and quality control that distinguishes it from competitors.

The company's business model also includes a focus on sustainable farming practices, aligning with China's broader agricultural policies aimed at reducing environmental impact. In recent years, Yisheng has adopted modern technologies such as big data and AI to optimize its operations, reflecting a trend in the industry towards digitization.

As of October 2023, Shandong Yisheng remains a pivotal entity in the agricultural sector, with ongoing efforts to expand its reach in international markets. The company’s commitment to quality genetics and innovation continues to position it favorably within the competitive landscape of livestock and poultry breeding in China.

A Who Owns Shandong Yisheng Livestock & Poultry Breeding Co., Ltd.

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. is a prominent player in the Chinese livestock sector, primarily focusing on the breeding of poultry. The ownership structure of the company is critical to understanding its operational directions and stakeholder interests.

As of the most recent reports, Shandong Yisheng is publicly traded on the Shenzhen Stock Exchange under the ticker symbol 002458.SZ. The company has a market capitalization of approximately ¥5.2 billion as of September 2023.

The major shareholders of Shandong Yisheng are as follows:

The controlling entity, Shandong Yisheng Holdings Co., Ltd., significantly dominates the ownership structure, which allows it to exert substantial influence over corporate decisions and strategies. In comparison, institutional investors, including China National Agricultural Development Group, hold a smaller but still important stake.

In terms of financial performance, Shandong Yisheng reported revenues of ¥1.8 billion in the fiscal year 2022, showcasing growth of approximately 15% compared to the previous year. The net profit for the same year was reported at ¥250 million, translating to a profit margin of about 13.89%.

Market trends indicate a rising demand for poultry products, which plays to the strengths of Shandong Yisheng, especially with its emphasis on breeding high-quality birds. The company's research and development initiatives in breeding technology are likely to strengthen its competitive edge further.

The governance structure of Shandong Yisheng also bears importance on the ownership front. The board of directors comprises a mix of executive and non-executive members, where the CEO, Wang Jianmin, holds considerable sway within the firm, fostering a culture that emphasizes growth and sustainability.

Overall, the ownership and financial structure of Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. position it favorably for future growth in the poultry industry, aligned with market demands and governance best practices.

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. Mission Statement

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. is committed to enhancing animal husbandry practices through innovation and sustainable methods. The company's mission revolves around the principles of providing high-quality livestock breeding services, promoting healthy livestock products, and contributing to food security.

The company emphasizes the importance of genetic improvement in livestock and poultry, aiming to increase productivity while minimizing environmental impacts. This commitment is reflected in their ongoing investments in research and development, which amounted to approximately RMB 500 million in 2022.

Company Objectives Related to Mission

• Enhance livestock genetic quality.
• Expand market presence domestically and internationally.
• Promote sustainable breeding practices.
• Invest in biotechnology and feed research.
• Improve food safety standards in livestock products.

Financial Performance

In 2022, Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. reported total revenue of RMB 3.2 billion, reflecting a year-on-year growth of 15%. The net profit reached RMB 420 million, indicating a profit margin of approximately 13.1%.

Shandong Yisheng also places considerable focus on training and development programs for their employees, allocating around RMB 20 million annually to enhance skill sets and promote innovation.

Market Position and Growth

With a market share of approximately 22% in the Chinese livestock breeding sector, Shandong Yisheng has positioned itself as a leader in the industry. The company aims to increase its market share through strategic partnerships and diversification of its breeding programs.

In 2023, the estimated growth rate for the livestock breeding industry in China is projected to be around 10%, driven by increasing demand for protein sources and advancements in breeding technologies. Shandong Yisheng's alignment with these trends is essential for sustaining its competitive advantage.

Community and Environmental Responsibility

Shandong Yisheng actively engages in community outreach and environmental sustainability initiatives. The company has implemented waste management systems that have reduced emissions by approximately 30% over the past three years. Their goal is to achieve zero waste in production by 2025.

The mission of Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. encapsulates a commitment to quality, sustainability, and innovation, which is crucial for navigating the challenges of the modern agricultural landscape.

How Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. Works

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. is a prominent player in China's livestock and poultry breeding industry, primarily engaged in the breeding and sale of high-quality livestock and poultry. The company emphasizes disease-resistant genetics, enabling enhanced productivity and lower mortality rates across its livestock products.

As of 2022, the company reported revenues of approximately RMB 3.5 billion, with a notable year-on-year growth of 15%. Their net profit for the same period reached around RMB 400 million, translating to a profit margin of roughly 11.4%.

Yisheng's operations are structured around several key segments:

• Poultry Breeding
• Livestock Breeding
• Feed Production
• Veterinary Services

The poultry breeding segment is particularly significant, accounting for approximately 60% of total revenue. The company specializes in breeding various chicken strains, including broilers and layers, which are renowned for their growth rates and egg production capabilities.

In 2023, Yisheng expanded its poultry breeding capacity by 25%, investing around RMB 150 million in infrastructure improvements. This included the development of advanced breeding farms equipped with modern technologies for biosecurity and environmental control.

Yisheng's livestock division focuses on breeding pigs, which has emerged as another revenue-generating sector. The company reported a herd size of more than 200,000 sows, contributing to an annual production of around 1.2 million piglets. The average weight of market-ready pigs is approximately 120 kg, with an average selling price of RMB 20/kg.

The company is also heavily invested in feed production, producing over 1 million tons of feed annually. The feed sales alone contribute to approximately 25% of the company's overall revenue. In the first half of 2023, feed production reported an increase of 10% compared to the previous year, reflecting demand growth driven by the surge in livestock breeding.

Additionally, Yisheng is dedicated to improving its research and development (R&D) capabilities. In 2022, R&D investment amounted to RMB 50 million, focusing on genetics improvement, disease resistance, and feed efficiency. This commitment has positioned the company as a leader in innovation within the industry.

Overall, Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. operates within a well-structured framework that emphasizes efficiency, productivity, and sustainability in livestock and poultry breeding, making significant strides in both domestic and international markets.

How Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. Makes Money

Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. primarily generates revenue through the breeding, raising, and sale of livestock, particularly poultry. The company's operations encompass several key segments, which contribute significantly to its financial performance.

Revenue Streams

• Poultry Breeding and Sales: The majority of Yisheng's income comes from breeding and selling day-old chicks and other poultry products. In 2022, the revenue from this segment was approximately ¥5.2 billion.
• Feed Production: The company also produces animal feed, which is a major component of its operations. The feed segment accounted for around ¥2.3 billion in revenue in 2022.
• Livestock Genetics: Yisheng provides livestock genetic services, which have become increasingly important. This segment generated about ¥1.1 billion in revenue in the same period.
• Export Revenue: A growing international market has led to significant export opportunities, particularly in Asia and Africa, contributing roughly ¥700 million to the company’s annual revenue.

Financial Performance

In the financial year ended December 2022, Shandong Yisheng reported total revenues of approximately ¥9.3 billion, reflecting a year-over-year increase of 15%. The company’s net profit for that year was around ¥850 million, resulting in a net profit margin of approximately 9.1%.

Market Presence and Expansion

Yisheng has established a robust presence in the Asian livestock market, with over 40% market share in China’s poultry sector. The company has been actively expanding its operations, with plans to increase its breeding capacity by 20% over the next two years. This expansion is expected to necessitate an investment of around ¥600 million.

The firm also specializes in research and development, dedicating approximately 5% of total revenue to innovation and technology improvement, which enhances its competitive edge in livestock genetics and feed efficiency.

Operational Efficiency

Operational efficiency plays a critical role in Yisheng's profitability. The company reported a return on assets (ROA) of 6.3% and a return on equity (ROE) of 12.5% in 2022. These metrics indicate effective management of resources and strong returns on shareholder investments.

Challenges and Resilience

Despite a generally positive outlook, Yisheng faces challenges, including fluctuating feed prices and regulatory pressures related to biosecurity and sustainability. In response, the company has adopted measures focusing on cost management and efficiency optimization, with a goal to reduce feed costs by 10% over the next fiscal year through improved sourcing strategies and technological innovations.

This strategic approach positions Shandong Yisheng Livestock & Poultry Breeding Co., Ltd. to maintain its profitability and continue to thrive in the competitive livestock market.