Core Viewpoint - The 2025 CTCC China Automobile Circuit Professional League held in Shanghai attracted over 100 top racing cars, nearly 200 elite drivers, and more than 40,000 enthusiastic spectators, showcasing the growing popularity of motorsport events in China [1] Group 1: Event Highlights - The event took place from September 20 to September 21 at the Shanghai International Circuit, organized by the China Automobile and Motorcycle Sports Association and operated by Lisheng Sports [1] - The event implemented a "ticket root economy" model and promoted a "travel with the event" theme, collaborating with Shanghai Anting Cultural Tourism to create a "watching + experience" tourism service model [1] - Attendees could enjoy not only the races but also explore various attractions around Jiading, enhancing the cultural experience alongside the sporting event [1] Group 2: Industry Impact - Since its launch in April, the CTCC series has traveled to multiple cities and regions across China, effectively converting "event traffic" into "consumption growth" [1] - Lisheng Sports has been a pioneer in the sports event market and digital upgrade of the industry, focusing on motorsport and holding exclusive operational promotion qualifications for several international and national top events [1] - The company has developed a multi-level ecological matrix, ranging from basic brand events to original local events, and up to national and international professional events [1]

Group 1 - The sports sector experienced a decline of 1.07% on September 22, with Zhongti Industry leading the drop [1] - The Shanghai Composite Index closed at 3828.58, up 0.22%, while the Shenzhen Component Index closed at 13157.97, up 0.67% [1] - Key stocks in the sports sector showed varied performance, with Lisheng Sports closing at 15.40, down 1.03%, and Zhongti Industry closing at 9.16, down 1.08% [1] Group 2 - The net outflow of main funds in the sports sector was 6.34 million yuan, while retail funds saw a net outflow of 5.02 million yuan [1] - Lisheng Sports had a main fund net inflow of 124.66 thousand yuan, while Zhongti Industry experienced a main fund net outflow of 6.31 million yuan [1] - Retail investors showed a negative net flow for both Lisheng Sports and Zhongti Industry, with -121.78 thousand yuan and -380.07 thousand yuan respectively [1]

Group 1: Event Overview - The 2025 CTCC China Automobile Circuit Professional League was held in Shanghai, featuring four major racing events and attracting over 40,000 spectators [1] - The event showcased top-tier racing teams and drivers, with notable performances from various teams and drivers across different competitions [1] Group 2: Sports Industry Growth - The sports industry in China has seen an average annual growth rate of over 10% in the past five years, becoming a significant driver of consumer spending [2] - The government aims to cultivate influential sports enterprises and events by 2030, targeting a total sports industry scale exceeding 7 trillion yuan [2] Group 3: Local Government Initiatives - Local governments are implementing incentive measures to promote sports consumption, with Shandong Province hosting numerous large-scale events that generated significant economic benefits [3] - Shanghai's government is focusing on developing sports event economies and integrating cultural tourism with major events [3] Group 4: Economic Model and Tourism Integration - CTCC is adopting a "ticket root economy" model, combining event attendance with tourism experiences, enhancing the overall visitor experience [4] - The series has successfully integrated local culture and tourism, converting event attendance into increased consumer spending [4] Group 5: Company Strategy and Performance - Lisheng Sports is a leading player in the automotive sports operation sector, focusing on market-oriented sports event management and digital upgrades [5] - The company operated 55 sports events in the first half of the year, achieving a revenue of 192 million yuan, a year-on-year increase of 30.20% [5] Group 6: Celebrity Engagement and Broader Impact - The participation of celebrity drivers in CTCC events has increased public interest and engagement, showcasing the sport's appeal beyond traditional racing fans [6] - The integration of sports events with tourism and cultural activities is expanding the value of sports events, contributing to urban branding and consumer engagement [6]

Company Overview - Lisheng Sports was established on October 16, 2002, and went public on March 24, 2017. The company is located in Changning District, Shanghai [2] - The main business segments include sports event management (70.62% of revenue), sports venue management (24.72%), marketing services (2.24%), sports club management (1.30%), sports equipment manufacturing and sales (0.63%), and other (0.35%) [2] Financial Performance - For the first half of 2025, Lisheng Sports reported revenue of 272 million yuan, a year-on-year increase of 21.94%, and a net profit attributable to shareholders of 15.32 million yuan, up 11.97% year-on-year [2] - The company has distributed a total of 16.42 million yuan in dividends since its A-share listing, with no dividends paid in the last three years [3] Stock Performance - As of September 22, Lisheng Sports' stock price was 15.24 yuan per share, with a market capitalization of 2.498 billion yuan. The stock has increased by 33.22% year-to-date but has decreased by 4.99% over the last five trading days [1] - The stock has appeared on the "Dragon and Tiger List" once this year, with a net buy of 29.86 million yuan on September 8, accounting for 14.15% of total trading volume [1] Shareholder Structure - As of June 30, 2025, the number of shareholders was 18,400, a decrease of 15.86% from the previous period, with an average of 8,004 circulating shares per shareholder, an increase of 18.85% [2] - New institutional shareholders include CITIC Prudential Multi-Strategy Mixed Fund (third largest shareholder) and Golden Eagle National Emerging Mixed Fund (sixth largest shareholder) [3]

Core Insights - Lisheng Sports held its 2025 Shanghai-listed company collective reception day and mid-year performance briefing on September 19, highlighting its operational strategy and ongoing projects [1] Group 1: Company Operations - Lisheng Sports currently operates three racetracks: Shanghai Tianma Racetrack (owned), Hunan Zhuzhou Racetrack (operated), and Hainan International Racetrack (under construction) [1] - The Tianma Racetrack is located in the Yangtze River Delta and attracts customers through unique projects like Tianma Lunji [1] - The Zhuzhou Racetrack integrates cultural tourism features to expand its audience [1] - The Hainan International Racetrack is expected to leverage tax-free policies upon completion to reach a broader demographic and offer diverse services [1] Group 2: Project Management and Development - The Hainan International Racetrack project is progressing steadily, with the company implementing strict project management to ensure timely construction [1] - Upon completion, the racetrack aims to achieve both social and economic benefits through high-quality management and operations [1] Group 3: Industry Position - Lisheng Sports is recognized as a leader in China's digital sports and mass fitness sectors, focusing on automotive sports operation services [1] - The company specializes in various sports-related businesses, including event management, club operations, venue management, equipment manufacturing and sales, and marketing services [1]

Group 1: Event Operations and Revenue - The company emphasizes enhancing brand value in event operations, with a focus on increasing the commercial licensing revenue share from core event IPs [2][3] - Currently, the proportion of event copyright revenue to total event income is relatively low compared to mature international events like F1 [2][3] - The company plans to expand media partnerships through platforms like Douyin, Xiaohongshu, and Bilibili to increase event coverage and brand exposure [3] Group 2: Venue Management and Regional Strategies - The company operates several racetracks, including Shanghai Tianma and Zhuzhou, with ongoing development of the Hainan International Circuit [3][4] - Each venue adopts tailored operational strategies to leverage local advantages, with Hainan expected to benefit from tax-free policies to attract a broader audience [3][4] - The company is committed to strict project management to ensure timely completion of the Hainan project, aiming for both social and economic benefits [3] Group 3: International Expansion and Sponsorship - The company has seen significant growth in core business revenue from sports events, with notable contributions from overseas events [4][7] - The overseas events team focuses on maintaining profitability through quality service and brand reputation, primarily expanding in the Asia-Pacific region [4] - Commercial sponsorship is recovering, with automotive brands being the primary sponsors, while efforts are made to attract a wider range of brands [7] Group 4: Youth Sports Development - The company is enhancing its youth sports training programs in response to national policies, providing services and facilities for youth events [6] - The recruitment scale for youth sports training has seen changes this year, reflecting the company's commitment to youth development [6] Group 5: Financial and Regulatory Updates - The company is in the process of issuing shares to specific investors, currently under review by the Shenzhen Stock Exchange [8] - Information regarding the share issuance will be disclosed in accordance with regulatory requirements [8] Group 6: Innovation in Sports Complex Operations - The company is exploring new profit models for sports complex operations, focusing on IP-based management and digital upgrades [9] - Strategies include creating innovative self-owned IPs and enhancing local life area management through data sharing and joint marketing [9]

Group 1 - The sports sector experienced a slight increase of 0.0% on September 19, with Zhongti Industry leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down by 0.3%, while the Shenzhen Component Index closed at 13070.86, down by 0.04% [1] - Zhongti Industry's closing price was 9.26, with a gain of 0.22%, while Lisheng Sports closed at 15.56, down by 0.83% [1] Group 2 - The net outflow of main funds in the sports sector was 7.8371 million yuan, while retail funds saw a net outflow of 863,300 yuan [1] - Lisheng Sports had a main fund net outflow of 3.3435 million yuan and a retail fund net inflow of 939,570 yuan [1] - Zhongti Industry experienced a main fund net outflow of 4.4936 million yuan, with a retail fund net outflow of 1,025,900 yuan [1]

Core Viewpoint - Lisheng Sports has experienced a decline in stock price recently, with a year-to-date increase of 34.18% and a slight drop of 0.26% over the past five trading days [1] Company Overview - Lisheng Sports was established on October 16, 2002, and went public on March 24, 2017. The company operates in sports event management, sports club management, sports venue management, sports equipment manufacturing and sales, and marketing services [2] - The revenue composition of Lisheng Sports includes 70.62% from sports event management, 24.72% from sports venue management, 2.24% from marketing services, 1.30% from sports club management, 0.63% from sports equipment manufacturing and sales, and 0.14% from digital sports [2] Financial Performance - For the first half of 2025, Lisheng Sports reported revenue of 272 million yuan, representing a year-on-year growth of 21.94%, and a net profit attributable to shareholders of 15.32 million yuan, up 11.97% year-on-year [2] - The company has distributed a total of 16.42 million yuan in dividends since its A-share listing, with no dividends paid in the last three years [3] Shareholder Information - As of June 30, 2025, Lisheng Sports had 18,400 shareholders, a decrease of 15.86% from the previous period, with an average of 8,004 circulating shares per shareholder, an increase of 18.85% [2] - Notable new institutional shareholders include CITIC Prudential Multi-Strategy Mixed Fund A, holding 1.98 million shares, and Golden Eagle National Emerging Mixed Fund A, holding 1.17 million shares [3]

Core Viewpoint - Lisheng Sports has experienced a stock price increase of 37.67% year-to-date, with recent trading activity showing a slight decline of 2.05% on September 18, 2023, indicating potential volatility in the market [1] Company Overview - Lisheng Sports was established on October 16, 2002, and went public on March 24, 2017. The company operates in various sectors including sports event management, sports club operations, venue management, sports equipment manufacturing and sales, and marketing services [2] - The revenue composition of Lisheng Sports is as follows: sports event management (70.62%), venue management (24.72%), marketing services (2.24%), sports club operations (1.30%), sports equipment manufacturing and sales (0.63%), and other (0.35%) [2] Financial Performance - For the first half of 2025, Lisheng Sports reported a revenue of 272 million yuan, representing a year-on-year growth of 21.94%. The net profit attributable to shareholders was 15.32 million yuan, reflecting an increase of 11.97% compared to the previous year [2] - The company has distributed a total of 16.42 million yuan in dividends since its A-share listing, with no dividends paid in the last three years [3] Shareholder Structure - As of June 30, 2025, Lisheng Sports had 18,400 shareholders, a decrease of 15.86% from the previous period. The average number of circulating shares per shareholder increased by 18.85% to 8,004 shares [2] - Notable new institutional shareholders include CITIC Prudential Multi-Strategy Mixed Fund (third largest shareholder with 1.98 million shares), and Golden Eagle National Emerging Mixed Fund (sixth largest with 1.17 million shares) [3]

Summary of Conference Call Records Industry Overview - The service consumption in China is significantly lower than in developed countries, currently at approximately 30% compared to 70% in the US, indicating substantial growth potential [1][2] - The new policies aim to enhance service consumption, particularly in the cultural and tourism sectors, with local governments actively improving service quality [1][2] Key Policy Insights - Five major increments in the new policy include: 1. Optimizing student holiday arrangements to explore spring and autumn breaks, benefiting tourism [1][4] 2. Encouraging IP collaborations to promote cross-industry partnerships [1][4] 3. Linking sports events with cultural tourism to boost consumer engagement [1][4] 4. Promoting AI applications in various sectors such as e-commerce and education [1][4] 5. Regulating non-academic training institutions to encourage market-oriented vocational training [1][4] Impact on Specific Sectors - **Tourism and Hospitality**: - The expansion of the visa-free entry policy is expected to significantly boost inbound tourism, particularly benefiting major cities like Beijing and Shanghai, as well as OTA platforms and hotels [3][9][12] - **Cultural and Sports Events**: - The policy encourages the introduction of international sports events and supports local sports activities, which will benefit event organizers and related industries, enhancing investor expectations [1][6] - **Education and Training**: - The new regulations for non-academic training institutions will favor companies like New Oriental and others in the vocational training sector [7][8] Financial and Economic Support - The government plans to utilize central budget investments and local special bonds to support cultural tourism and elderly care facilities, which will attract social capital investment [13] - Financial tools will be employed to increase credit availability, directly benefiting companies involved in consumer lending, such as Chongqing Department Store [13] Additional Considerations - The adjustment of student holiday schedules is anticipated to increase tourism frequency while alleviating congestion during peak seasons [11][12] - The integration of AI in service sectors is expected to enhance operational efficiency and reduce costs, indicating a significant trend in future consumption development [10]