Share Repurchase and Dividend Policy - The company repurchased a total of 678,800 shares for a total amount of RMB 9,997,164, which will be treated as cash dividends for the year[4]. - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital[5]. - The company did not distribute cash dividends for 2019 due to share repurchases totaling approximately 9.99 million yuan[135]. - The total cash dividend amount (including other methods) for 2019 was CNY 9,997,164, which accounted for 100% of the total profit distribution[137]. - The company has a cash dividend policy that mandates at least 10% of the distributable profit to be distributed as cash dividends annually, barring significant capital expenditures[133]. Financial Performance - The company's operating revenue for 2019 was ¥440,135,434.52, representing a 17.34% increase compared to ¥375,091,438.02 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥24,525,755.97, a decrease of 36.00% from ¥38,322,414.87 in 2018[18]. - The basic earnings per share for 2019 was ¥0.19, down 36.67% from ¥0.30 in 2018[19]. - Total assets at the end of 2019 reached ¥739,462,888.77, a 25.75% increase from ¥588,048,942.25 at the end of 2018[19]. - The overall gross margin was 28.80%, an increase of 0.11% year-on-year[58]. Revenue Streams and Business Operations - The event operation business generated revenue of 247,559,544.98 yuan, a significant year-on-year increase of 177.92%, accounting for 56.25% of total revenue[59]. - The company operates as a leading automotive sports service provider in China, focusing on event operations and services, track management, and automotive sports technology development[27]. - The company operates multiple racing teams, including the SAIC Volkswagen 333 team, which has won numerous championships in various racing series, showcasing its competitive advantage in motorsport[30]. - The company is focusing on developing personal consumption products and team-building products to create new revenue growth points[59]. - The company is enhancing management efficiency through refined project management and integration of financial software systems[61]. Acquisitions and Strategic Partnerships - In 2019, the company completed the acquisition of 51% stakes in TOP SPEED (SHANGHAI) LIMITED and Shanghai Qingsu Event Planning Co., expanding its event service model, which focuses on high-level execution and service for client-owned event IPs[35]. - The company signed a strategic cooperation agreement with SAIC Motor Corporation's passenger car division to jointly establish the Xpower project department, which includes market marketing, automotive sports, and engineering development[30]. - The company aims to enhance its profitability by increasing sponsorship amounts for events, as the influence of these events grows while maintaining stable major cost expenditures[33]. Market and Industry Insights - In 2019, China's automobile production and sales reached 25.72 million and 25.77 million units, respectively, maintaining its position as the world's largest market for eleven consecutive years[44]. - The automotive modification market in China was valued at over 160 billion yuan in 2018, growing at an annual rate exceeding 30%[45]. - The government aims for the sports industry to exceed 5 trillion yuan by 2025, promoting the development of motorsport events[45]. - The company anticipates significant growth potential in the automotive aftermarket, projected to reach approximately 2.3 trillion yuan by 2023[45]. Risk Management and Compliance - The company emphasizes the importance of risk awareness regarding forward-looking statements in its reports[4]. - The company is exposed to risks from macroeconomic fluctuations that could impact its operations and financial performance[126]. - The company has contingency plans in place to address potential disruptions from unforeseen events, such as natural disasters or government restrictions[128]. - The company has implemented measures to reduce the risk of talent shortages by enhancing internal management and performance evaluation systems[126]. Corporate Governance and Shareholder Commitments - The company has fulfilled all commitments made by its actual controllers and shareholders during the reporting period[139]. - The company has a commitment to not transfer or sell shares held by its major shareholders for a period of 36 months from the date of listing[139]. - The company will implement a stock price stabilization plan if the stock price falls below the latest audited net asset value for 20 consecutive trading days within three years of listing[142]. - The company has committed to ensuring that any share reduction will not occur below the issue price, with adjustments made for dividends or capital increases[142]. Research and Development - The company plans to enhance its technological capabilities through various R&D projects, including the development of a CTCC event information dissemination platform and a business collaboration operating system[78]. - The company is focusing on R&D for various types of racing vehicles, including TCR, XRace, and ETCR electric racing cars, to serve a diverse customer base[117]. Community Engagement and Recognition - The company received the "Best Sports Listed Company" award at the 5th SportIN Sports Industry Conference in 2019[180]. - The company engaged in targeted poverty alleviation by purchasing CNY 200,000 worth of agricultural products and donating CNY 50,000 for cultural promotion[181].

Financial Performance - Operating revenue for the reporting period reached CNY 109,586,305.29, a year-on-year increase of 29.81%[7] - Net profit attributable to shareholders increased by 32.20% to CNY 11,085,832.21 for the reporting period[7] - The net profit after deducting non-recurring gains and losses rose by 57.76% to CNY 10,723,694.79[7] - Basic earnings per share increased by 32.58% to CNY 0.0879[7] - The weighted average return on equity improved to 2.56%, up by 0.47 percentage points from the previous year[7] - Total operating revenue for the current period reached ¥109,586,305.29, an increase of 29.8% compared to ¥84,421,551.52 in the previous period[36] - Total operating costs amounted to ¥90,075,113.17, up from ¥75,038,963.13, reflecting a growth of 20.0%[36] - Operating profit for the current period was ¥18,000,843.66, a significant increase of 93.5% from ¥9,322,205.30 in the previous period[37] - Net profit for the current period was ¥12,567,507.25, representing a 60.0% increase compared to ¥7,845,158.98 in the previous period[38] - The total profit for the current period was ¥17,854,936.40, compared to ¥9,368,504.74 in the previous period, indicating an increase of 90.5%[37] Assets and Liabilities - Total assets increased by 27.34% to CNY 748,849,149.97 compared to the end of the previous year[7] - Current liabilities rose to CNY 194,780,271.29, compared to CNY 129,095,266.32, marking an increase of about 50.9%[28] - Non-current assets totaled CNY 303,550,771.22, significantly up from CNY 164,757,057.44, reflecting an increase of approximately 84.4%[29] - Total liabilities increased to CNY 247,026,549.74 from CNY 133,204,708.13, an increase of about 85.5%[28] - The company's total equity rose to CNY 501,822,600.23 from CNY 454,844,234.12, reflecting an increase of approximately 10.3%[29] Cash Flow - The net cash flow from operating activities was CNY 3,190,127.16, a significant increase of 118.51%[7] - The company's cash and cash equivalents decreased to CNY 9,042,782.46 from CNY 127,891,185.46, a decline of about 92.9%[31] - Cash flow from operating activities was ¥290,357,513.68, compared to ¥206,334,894.48 in the previous period, indicating a strong cash generation capability[52] - The net cash flow from operating activities was -54,154,735.14 CNY, compared to -52,800,421.93 CNY in the previous period, indicating a slight deterioration in cash flow performance[53] - Total cash inflow from operating activities was 324,301,142.47 CNY, while cash outflow was 378,455,877.61 CNY, resulting in a net cash flow deficit[53] Shareholder Information - The total number of shareholders at the end of the reporting period was 11,317[11] - The largest shareholder, Xia Qing, holds 23.99% of the shares, amounting to 30,300,000 shares, with 30,300,000 shares pledged[11] Government Support and Subsidies - The company received government subsidies totaling CNY 2,542,802.03 during the reporting period[8] - Other income increased by 62.52% to ¥2,499,909.85 from ¥1,538,193.67, mainly due to increased government subsidies[16] Inventory and Receivables - Inventory increased by 67.30% to ¥60,851,645.38 from ¥36,373,125.33, driven by new business working capital usage and consolidation scope expansion[15] - Other receivables rose by 420.57% to ¥33,044,403.22 from ¥6,347,751.79, attributed to increased working capital and expanded consolidation scope[15] - Accounts receivable decreased to CNY 54,368,128.04 from CNY 76,909,369.05, a drop of approximately 29.4%[31] Research and Development - Research and development expenses increased to ¥4,524,873.64 from ¥3,513,877.86, marking a rise of 28.8%[36] - Research and development expenses were ¥11,831,546.21, up 8% from ¥10,953,956.79 in the previous period, indicating continued investment in innovation[43] Future Outlook and Strategy - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[69] - The company is investing in R&D for new technologies, with a budget allocation of 5 million for the upcoming year[69] - Market expansion efforts include entering two new regions, aiming for a 10% market share within the first year of operation[69] - The company is exploring potential acquisitions to enhance its service offerings, with a target of identifying at least three candidates by Q2 2020[69] - New product development is expected to contribute an additional 8 million in revenue by the end of the fiscal year[69] - Strategic partnerships are being formed to enhance brand visibility, with a goal of increasing customer reach by 25%[69] - The management emphasized a commitment to sustainability, aiming to reduce operational costs by 10% through eco-friendly practices[69]

Financial Performance - The company's operating revenue for the first half of 2019 was CNY 167,430,920.77, representing a 14.24% increase compared to CNY 146,565,165.36 in the same period last year[20]. - The net profit attributable to shareholders of the listed company was CNY 4,619,703.26, a significant increase of 114.31% from CNY 2,155,602.45 in the previous year[20]. - The net profit after deducting non-recurring gains and losses reached CNY 3,066,500.61, compared to a loss of CNY 716,075.65 in the same period last year, marking a 528.24% improvement[20]. - The basic earnings per share increased to CNY 0.0366, up 114.04% from CNY 0.0171 in the previous year[20]. - The total assets of the company at the end of the reporting period were CNY 709,043,160.97, reflecting a 20.58% increase from CNY 588,048,942.25 at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were CNY 423,986,586.15, showing a slight decrease of 0.97% from CNY 428,155,025.82 at the end of the previous year[20]. - The net cash flow from operating activities was negative at CNY -57,344,862.30, worsening by 61.22% compared to CNY -35,568,593.01 in the same period last year[20]. - The weighted average return on net assets was 1.07%, an increase of 0.54% compared to 0.53% in the previous year[20]. Revenue Sources - The company achieved event operation revenue of ¥86,296,953.14, a year-on-year increase of 325.20%, which accounted for 51.54% of total revenue, up from 13.85% in the same period last year[59]. - The company's revenue from racetrack operations is closely linked to the number of track usage days, with higher revenues expected in Q2, Q3, and Q4 compared to Q1 due to seasonal factors[40]. - The racing team revenue model primarily derives from manufacturer sponsorships, with the company’s factory team generating the majority of income, while club teams have limited impact on overall performance[41]. - The automotive event promotion business is characterized by significant seasonality, with most revenue recognized in Q4 after project completion[43]. - The company’s total revenue for the racing event segment increased by 325.20% year-on-year, reaching ¥86,296,953.14, with a gross margin of 23.41%[67]. Investments and Acquisitions - The company completed the acquisition of 51% of Jiangxi Saiji Sports Equipment Manufacturing Co., enhancing its competitive edge in the karting sector[50]. - The company completed the acquisition of 51% stakes in TOP SPEED (SHANGHAI) LIMITED and Shanghai Qingsu Event Planning Co., Ltd., enhancing its involvement in international motorsport events and establishing partnerships with luxury car brands like Ferrari and Lamborghini[51]. - The company reported a total investment of ¥166,574,032.50 during the period, a staggering increase of 2,630.72% compared to the previous year[75]. - The company plans to use CNY 66 million from the remaining funds for acquiring 51% of Top Speed (Shanghai) Limited, with a transaction price of HKD 155.55 million[85]. Operational Challenges - The company faces risks related to the inability to extend commercial promotion rights for major events, which could significantly impact operational performance[99]. - The company is exposed to risks from macroeconomic fluctuations that could affect the marketing budgets of its clients in the automotive industry[101]. - The company has a significant risk of talent shortages, particularly in new business segments, due to a lack of qualified professionals in the domestic market[101]. - The company has established contingency plans to address potential income loss due to unforeseen events or natural disasters[103]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the half-year period[107]. - The first employee stock ownership plan, which holds 1,877,600 shares (approximately 1.49% of total shares), is set to expire on August 27, 2019[114]. - The employee stock ownership plan was extended until August 27, 2020, based on confidence in the company's future development[115]. - The largest shareholder, Xia Qing, holds 30,300,000 shares, representing 23.99% of the total shares[138]. Regulatory Compliance - The company has complied with environmental regulations and has not faced any environmental pollution incidents[126]. - There were no major litigation or arbitration matters during the reporting period[111]. - The company has not experienced any penalties or rectification situations during the reporting period[112]. Market Position and Strategy - The company operates a full industry chain service in motorsport, including event operations, training, and sales of racing equipment[28]. - The company is recognized as a leading motorsport operator in China, focusing on both professional and amateur racing events[28]. - The company aims to enhance its revenue through increased sponsorship amounts as the influence of its events grows, despite stable major cost expenditures[37]. - The company plans to enhance market expansion while diversifying its business types and methods to reduce seasonal revenue fluctuations[102].

Financial Performance - The company's operating revenue for Q1 2019 was ¥59,859,309.52, representing a 48.46% increase compared to ¥40,321,431.87 in the same period last year[8] - The net profit attributable to shareholders was -¥4,017,669.71, an improvement of 18.98% from -¥4,958,975.97 year-on-year[8] - The basic earnings per share improved by 59.49% to -¥0.032 from -¥0.079 in the same period last year[8] - The company reported a net cash outflow from operating activities of ¥45,735,904.01, worsening by 29.74% compared to the previous period[18] - The company reported a significant decrease in investment income by 73.11% to ¥333,813.88 from ¥1,241,623.61 due to reduced purchases of bank wealth management products[17] - The company reported a total profit (loss) for the period was a loss of ¥3,151,692.23, an improvement from a loss of ¥6,013,834.91 in the previous period, indicating a reduction in losses by about 47.5%[38] - Net profit for the period was a loss of ¥1,177,703.44, improving from a loss of ¥4,656,304.52 in the previous period, indicating a reduction in losses by approximately 74.8%[38] Assets and Liabilities - The total assets at the end of the reporting period were ¥672,286,403.25, an increase of 14.32% from ¥588,048,942.25 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 2.11% to ¥419,138,282.91 from ¥428,155,025.82 at the end of the previous year[8] - Long-term payables increased by 906.88% to ¥41,377,197.14 from ¥4,109,441.81 due to new unpaid equity transfer payments for TopSpeed[17] - The company's total liabilities reached CNY 194,868,749.96, up from CNY 133,204,708.13, marking a growth of around 46.1%[29] - Current liabilities rose to CNY 153,491,552.82 from CNY 129,095,266.32, reflecting an increase of approximately 18.9%[29] - Owner's equity totaled CNY 477,417,653.29, compared to CNY 454,844,234.12, showing an increase of about 4.9%[30] Cash Flow - Cash and cash equivalents decreased by 46.24% to ¥92,953,750.23 from ¥172,893,871.35 due to payments for TopSpeed equity transfer[17] - Cash flow from operating activities was ¥108,913,562.45, significantly up from ¥54,178,732.89, marking an increase of approximately 100.7% year-over-year[45] - The company reported a net cash increase of negative CNY 141,077,895.93 for the period, compared to negative CNY 28,278,763.29 in the previous year[47] - Total cash outflow from financing activities was CNY 5,606,970.23, resulting in a net cash flow from financing activities of negative CNY 2,606,970.23[51] - Cash and cash equivalents at the end of the period were CNY 87,953,750.23, down from CNY 229,031,646.16 at the beginning of the period, reflecting a decrease of 61.6%[47] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,442[12] - The largest shareholder, Xia Qing, holds 23.99% of the shares, amounting to 30,300,000 shares, with 23,400,000 shares pledged[12] - The company repurchased 342,600 shares, accounting for 0.2712% of total share capital, at a total cost of ¥4,997,563[20] Acquisitions and Investments - The company completed the acquisition of 51% of TopSpeed and 51% of Shanghai Qingsu Event Planning Co., Ltd[19] - Other receivables increased by 549.17% to ¥41,207,650.52 from ¥6,347,751.79 primarily due to the consolidation of TopSpeed customs deposits[17] - Long-term equity investments rose to CNY 162,309,195.48 from CNY 74,699,639.98, indicating a growth of about 117.0%[33] Government Support - The company received government subsidies amounting to ¥1,250,020.97 during the reporting period[9] Research and Development - Research and development expenses were ¥2,860,401.64, slightly up from ¥2,699,277.40, indicating continued investment in innovation[36]

Financial Performance - The company's operating revenue for 2018 was ¥375,091,438.02, representing a 32.87% increase compared to ¥282,301,271.80 in 2017[6]. - The net profit attributable to shareholders for 2018 was ¥38,322,414.87, a decrease of 5.93% from ¥40,736,606.93 in 2017[6]. - The net cash flow from operating activities for 2018 was ¥5,751,832.70, down 78.51% from ¥26,770,919.15 in 2017[6]. - The basic earnings per share for 2018 was ¥0.30, a decline of 11.76% compared to ¥0.34 in 2017[6]. - Total assets at the end of 2018 were ¥588,048,942.25, an increase of 23.19% from ¥477,367,562.88 at the end of 2017[17]. - The net assets attributable to shareholders at the end of 2018 were ¥428,155,025.82, up 6.38% from ¥402,464,610.95 at the end of 2017[17]. - The overall gross margin was 28.69%, down 6.75% compared to the previous year[53]. - The company achieved a total revenue of ¥375,091,438.02, representing a year-on-year growth of 32.87%[53]. - The net profit attributable to shareholders decreased by 5.93% to ¥38,322,414.87, with earnings per share dropping by 11.76% to ¥0.30[53]. Dividend Policy - The company plans to distribute a cash dividend of RMB 0.30 per 10 shares, totaling RMB 3,789,600.00, based on a total share capital of 126,320,000 shares[4]. - The cash dividend for 2017 was 12,632,000 CNY, which represented 31.01% of the net profit attributable to shareholders[125]. - The company has a policy to distribute at least 10% of the annual distributable profit as cash dividends, with a cumulative minimum of 30% over three years[120]. - The company reported a distributable profit of 35,011,767.48 CNY for 2018, with cash dividends accounting for 100% of the profit distribution[125]. - The cash dividend for 2018 represents 9.89% of the net profit attributable to shareholders[125]. - The company has committed to a stable dividend policy to protect the rights of minority shareholders[120]. Business Operations - The company operates a variety of motorsport events, including the WTCR, CTCC, and TCR China, with a total of 8 events held in 2018 for CTCC and 5 events for TCR China[27]. - The company hosted 21 events for the Lisheng Super Track Festival in 2018, expanding its reach to various regions[29]. - The company organized 8 events for the China Karting Championship in 2018, emphasizing youth engagement in motorsport[28]. - The company’s motorsport events are recognized for their investment potential, with CTCC being awarded "2018 Most Investable Event" by Sports BANK[27]. - The company operates multiple national-level racing events, including the CTCC and CKC, which have been running for 10 and 8 years respectively, contributing to its strong market influence[48]. Acquisitions and Investments - The company completed the acquisition of 51% of Jiangxi Saiki Sports Equipment Manufacturing Co., enhancing its competitive edge in the karting sector[46]. - The company plans to use ¥6,600 million of the remaining funds for the acquisition of 51% of Top Speed (Shanghai) Limited, with a transaction price of HKD 15,555 million[88]. - The company completed the acquisition of 51% stakes in TOP SPEED (SHANGHAI) LIMITED and Shanghai Qingsu Event Planning Co., Ltd. in January and March 2019, respectively[104]. - The company has committed a total investment of CNY 13,736.6 million for various projects, with CNY 7,136.6 million allocated for the current reporting period[90]. Market Trends and Growth Potential - The automotive modification market in China reached a value of over 160 billion RMB in 2018, growing at an annual rate of over 30%[44]. - The karting modification market in China is still in its infancy, with only 5% of vehicles modified compared to 80% in developed countries, indicating substantial growth potential[44]. - The total number of small passenger vehicles in China surpassed 200 million in 2018, indicating a growing automotive market[44]. Financial Management - The company reported a significant increase in cash and cash equivalents, rising by 123.60% compared to the previous year, primarily due to the reclassification of structured deposits as bank deposits[45]. - The company's accounts receivable increased by 49.48% year-over-year, reflecting a rise in sales revenue[45]. - The company’s cash and cash equivalents increased by 598.88% to ¥95,573,968.72, attributed to the reclassification of structured deposits[73]. - The company has invested a total of 9,175 million in bank wealth management products, with no overdue amounts reported[154]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans, indicating potential discrepancies between plans, forecasts, and commitments[4]. - The company faces risks related to the inability to extend commercial promotion rights for major events, which could significantly impact its operating performance[107]. - The company has a high reliance on the automotive industry, making it vulnerable to macroeconomic fluctuations that could affect marketing budgets[111]. - The company is focused on improving employee retention and attracting talent to mitigate the risk of talent shortages[110]. Corporate Governance - The company has not reported any changes in its main business since its listing, nor any changes in its controlling shareholders[15]. - The company has fulfilled its commitments regarding shareholding restrictions as of March 24, 2017, indicating compliance with regulatory requirements[127]. - The company has established a clear strategy for managing its shareholding structure post-listing, aimed at enhancing market confidence[127]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[198]. - Future outlook remains positive, with expectations of continued revenue growth and market expansion in the racing culture industry[190].

上海力盛赛车文化股份有限公司 2018 年第三季度报告正文 证券代码：002858 证券简称：力盛赛车 公告编号：2018-064 上海力盛赛车文化股份有限公司 2018 年第三季度报告正文 1 上海力盛赛车文化股份有限公司 2018 年第三季度报告正文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或者重大遗漏，并承担个别和 连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人夏青、主管会计工作负责人夏青及会计机构负责人(会计主管人 员)汪红霞声明：保证季度报告中财务报表的真实、准确、完整。 2 上海力盛赛车文化股份有限公司 2018 年第三季度报告正文 第二节 公司基本情况 一、主要会计数据和财务指标 | 项目 | 年初至报告期期末金额 说明 | | --- | --- | | 非流动资产处置损益（包括已计提资产减值准备的冲销部分） | 438,682.11 固定资产处置利得 | | 计入当期损益的政府补助（与企业业务密切相关，按照国家统 一标准定额或定量享受的政府补助除外） | 1,648,033.75 ...

Financial Performance - The company's operating revenue for the first half of 2018 was ¥146,565,165.36, representing a 119.23% increase compared to ¥66,854,952.86 in the same period last year[18]. - The net profit attributable to shareholders was ¥2,155,602.45, a significant turnaround from a loss of ¥3,702,022.86, marking a 158.23% improvement[18]. - The basic earnings per share increased to ¥0.0171 from a loss of ¥0.0300, reflecting a 157.00% increase[18]. - The total assets at the end of the reporting period were ¥489,206,383.34, up 2.48% from ¥477,367,562.88 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 2.60%, from ¥402,464,610.95 to ¥391,988,213.40[18]. - The net cash flow from operating activities was negative at -¥35,568,593.01, a decline of 1,209.65% compared to a positive cash flow of ¥3,205,394.33 in the previous year[18]. - The weighted average return on net assets improved to 0.53% from -1.68%[18]. - The company reported a total income of 2,871,678.10, with a significant increase in investment income from financial products amounting to 2,482,237.92[23]. - The company achieved a revenue of ¥146,565,165.36, representing a 119.23% increase compared to the same period last year[36]. - Operating costs rose to ¥116,915,924.07, an increase of 132.69% year-on-year, reflecting the rapid growth in revenue[40]. - The company reported a net profit attributable to the parent company of ¥2,155,602.45, marking a turnaround from loss to profit[36]. - Research and development expenses increased by 16.26% to ¥7,440,078.93, indicating a commitment to innovation[41]. - The company reported a gross profit margin of 22.39% for the racetrack operations, which decreased by 6.06% year-on-year[45]. Operational Activities - The company has hosted 3 events in the China Touring Car Championship (CTCC) during the first half of 2018, which is recognized as China's premier racing event[26]. - The company has organized 2 events in the China Karting Championship, which is considered the highest level karting event in China, during the first half of 2018[26]. - The TCR China series, which started in 2017, has held 1 event in the first half of 2018, showcasing its potential for growth in the domestic racing scene[26]. - The company has launched the TMC Touring Car Master Challenge, a new single-brand racing event, with 2 events held in the first half of 2018[26]. - The Super Endurance Championship (SEC) will have its final race duration extended to 24 hours in 2018, marking a significant change in the event's format[26]. - The company is actively promoting various racing events, including the FIA WTCR and the China Touring Car Championship, to enhance its brand presence in the motorsport industry[26]. - The company is focused on expanding its automotive sports services, including training and event promotion, to cover the entire industry chain[26]. - The company has established partnerships with international organizations to ensure the quality and competitiveness of its racing events[26]. - In the first half of 2018, the company hosted a total of 3 events for the Guangdong Championship Car Race and 8 events for the Lisheng Super Track Festival[27]. - The company’s racing team, SAIC Volkswagen 333 Team, participated in 3 races in the first half of 2018, achieving a championship and a third place in the Super Cup 2.0T group[27]. - The company operates multiple racing venues, including the Shanghai Tianma Circuit, which is a FIA Grade 4 track, and the Guangdong International Circuit, a FIA Grade 3 track, with lengths of 2.063 km and 2.82 km respectively[27]. - The Zhuzhou International Karting Circuit, which opened in November 2017, is the first karting track in South China designed according to FIA-CIK standards, with a length of 1.048 km[28]. - The company injected 2 million RMB into the registered capital of Zhuzhou International Circuit Development Co., Ltd. as part of the cooperation agreement during the reporting period[30]. - Fixed assets increased by 11.3 million RMB due to the completion of the Tianma Circuit expansion project and 1.91 million RMB from the completion of the racing modification project[30]. Market Strategy and Risks - The company aims to leverage the growing market for motorsport in China, supported by government policies promoting sports consumption and fitness[29]. - The company is focused on enhancing its core competitiveness while optimizing its existing business segments and improving its industry chain ecosystem[29]. - The company faces various operational risks, which are detailed in the report, and emphasizes the importance of risk awareness for investors[5]. - The company faces risks related to the inability to extend commercial promotion rights for major events, which could significantly impact operational performance[72]. - The company acknowledges the potential impact of macroeconomic fluctuations on its business and is taking measures to address these risks[74]. - The company is actively working to mitigate risks associated with talent shortages by enhancing internal management and performance evaluation systems[74]. - The company plans to mitigate risks associated with high accounts receivable concentration by enhancing credit governance, implementing stricter collection efforts, and conducting thorough customer credit assessments[78]. Shareholder and Capital Structure - The company did not distribute cash dividends or issue bonus shares for the half-year period[83]. - The first phase of the employee stock ownership plan resulted in the purchase of 938,800 shares, accounting for approximately 1.49% of the total share capital, at an average price of 41.494 RMB per share[91]. - The company completed a capital reserve increase plan, doubling its total share capital from 63,160,000 shares to 126,320,000 shares[113]. - The proportion of restricted shares decreased from 74.98% to 51.19% after the release of 15,027,500 shares[112]. - The company’s shareholders approved the profit distribution and capital reserve increase plan during the annual general meeting held on April 25, 2018[115]. - The actual controllers of the company hold 38.44% of the shares, which may influence management decisions and potentially affect minority shareholders[79]. - The total number of ordinary shareholders at the end of the reporting period was 33[120]. - The largest shareholder, Xia Qing, holds 23.99% of the shares, totaling 30,300,000 shares[121]. - Shanghai Saisai Investment Co., Ltd. is the second-largest shareholder with a 14.45% stake, amounting to 18,251,600 shares[121]. - The total number of shares held by the top ten shareholders is 64,665,000, with a significant portion being subject to restrictions[121]. Financial Management and Investments - The company has invested ¥9,950.00 million of the raised funds in financial products, with a remaining balance of ¥267.79 million in the fundraising account[58]. - The company utilized ¥1,521.83 million of the raised funds during the reporting period, with a cumulative total of ¥4,009.92 million utilized[56]. - The company anticipates increased depreciation and amortization expenses from new fundraising projects, which may negatively impact future earnings if market conditions worsen[79]. - The company is actively seeking to expand its market presence and reduce the time to reach full production capacity for its fundraising projects[79]. - The company has established a unique closed-loop business model within the automotive sports industry, enhancing customer engagement and operational efficiency[34]. - The company’s marketing efforts have expanded to include various short video and live streaming platforms to increase event visibility and attract a broader audience[37]. Accounting and Financial Reporting - The financial report for the first half of 2018 was not audited[134]. - The company has implemented changes in accounting policies as of April 2, 2018[106]. - The company conducts impairment testing for financial assets, recognizing impairment losses when the carrying amount exceeds the present value of expected future cash flows[190]. - The company applies a weighted average method for inventory valuation and assesses net realizable value to determine inventory write-downs[196]. - The company uses aging analysis to determine bad debt provisions, with rates of 5% for receivables within 1 year and 100% for those over 3 years[195]. - The company emphasizes the importance of fair value measurement in assessing the financial position of non-current assets[200]. - The accounting treatment for impairment losses is crucial for accurate financial reporting and decision-making[200].

Financial Performance - The company's operating revenue for Q1 2018 was ¥40,321,431.87, representing a 200.95% increase compared to ¥13,398,154.03 in the same period last year[8] - The net profit attributable to shareholders was -¥4,958,975.97, a 15.81% improvement from -¥5,889,874.67 year-on-year[8] - Basic earnings per share improved by 34.17% to -¥0.079 from -¥0.120 in the same period last year[8] - The company expects to turn a profit in the first half of 2018, compared to a net loss of ¥3,702,000 in the same period last year[18] Cash Flow and Assets - The net cash flow from operating activities was -¥35,252,633.30, which is a 35.92% decline compared to -¥25,936,159.55 in the previous year[8] - Cash and cash equivalents decreased by 36.57% to ¥49,041,139.34 due to increased working capital usage for new business[16] - Total assets at the end of the reporting period were ¥462,006,213.00, down 3.22% from ¥477,367,562.88 at the end of the previous year[8] - The net assets attributable to shareholders decreased by 1.23% to ¥397,505,634.98 from ¥402,464,610.95 at the end of the previous year[8] - Accounts receivable dropped by 83.08% to ¥99,305,000 as a result of the maturity and realization of certain receivables[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 9,940[12] - The largest shareholder, Xia Qing, holds 23.99% of the shares, amounting to 15,150,000 shares, with 11,700,000 shares pledged[12] - The company did not engage in any repurchase transactions during the reporting period[13] Operational Highlights - Operating revenue surged by 200.95% to ¥40,321,431.87, driven by new venues generating income[16] - Operating costs increased by 214.55% to ¥36,639,843.06, corresponding to the revenue from new venues and subsidiaries established last year[16] - Net cash flow from operating activities was negative at -¥35,252,633.30, a 35.92% increase in outflow due to working capital usage[16] Investment and Financial Activities - Non-recurring gains and losses totaled ¥1,784,687.97, with significant contributions from investment income and government subsidies[9] - Investment income rose significantly by 2,366.26% to ¥1,241,623.61, attributed to operational improvements[16] - Prepayments increased by 752.55% to ¥27,803,200.52, mainly due to the use of working capital for new business[16] - Financial expenses decreased by 109.66% to ¥3,941.04, primarily due to reduced interest income from lower cash balances[16] - The company reported a net cash flow from investment activities of ¥6,973,870.01, reflecting the redemption of financial management funds[16]

Financial Performance - The company's operating revenue for 2017 was CNY 282,301,271.80, representing a 17.15% increase compared to CNY 240,975,052.58 in 2016[17] - The net profit attributable to shareholders for 2017 was CNY 40,736,606.93, which is a 24.68% increase from CNY 32,673,928.43 in 2016[17] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 31,254,148.21, up 6.57% from CNY 29,326,302.80 in 2016[17] - The overall gross profit margin was 35.44%, up by 2.11% compared to the previous year[38] - The event operation business generated revenue of CNY 89,540,541.98, with a significant year-on-year growth of 23.86%[38] - The racetrack and venue operation business reported revenue of CNY 76,816,276.32, marking a 31.37% increase year-on-year[39] - The automotive activity promotion business achieved revenue of CNY 90,059,131.16, growing by 21.74% year-on-year[39] - The company reported a net profit margin of 12% for 2017, reflecting improved operational efficiency[180] Cash Flow and Assets - The net cash flow from operating activities decreased by 50.88% to CNY 26,770,919.15 from CNY 54,501,118.48 in 2016[17] - The total assets at the end of 2017 were CNY 477,367,562.88, a 75.55% increase from CNY 271,919,109.16 at the end of 2016[18] - The net assets attributable to shareholders increased by 80.77% to CNY 402,464,610.95 from CNY 222,642,448.66 in 2016[18] - The net cash flow from operating activities improved from -¥25,936,159.55 in Q1 to ¥37,691,717.05 in Q4, reflecting enhanced operational efficiency[22] - The net cash flow from investment activities significantly worsened, with a net outflow of ¥160,152,209.28, a 967.21% increase in losses year-over-year[60] - The total cash and cash equivalents increased by 13,675,361.95, representing a 59.98% decrease compared to the previous year[60] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares, with no bonus shares issued[5] - The company's net profit attributable to shareholders for 2017 was 40,736,606.93 CNY, with a cash dividend payout ratio of 31.01%[102] - The company has a policy to distribute at least 10% of the distributable profit as cash dividends annually, provided the profit is positive[98] - The company plans to distribute a cash dividend of 2 CNY per 10 shares, totaling 12,632,000 CNY for the year 2017[100] Business Operations and Market Expansion - The company has a diverse portfolio of racing events, including 8 stages of the China Touring Car Championship (CTCC) and 5 stages of TCR China in 2017, showcasing its market expansion efforts[27] - The company operates various racing events, including the FIA World Touring Car Championship and the China Karting Championship, enhancing its brand presence in the motorsport industry[27] - The company aims to leverage the growing market for automotive sports in China, supported by government policies promoting sports consumption and fitness[30] - The company is set to launch the first indoor karting facility in Songjiang District in 2018, covering an area of approximately 4,000 square meters, enhancing its service offerings[29] - The company plans to leverage the successful listing in March 2017 to drive development, focusing on customer needs and innovative business models[83] Risks and Challenges - The company has outlined potential risks and countermeasures in its future development outlook section[5] - The company faces risks related to regulatory changes in the automotive sports industry, which could impact operations and development[84] - The company is at risk of talent shortages, particularly in new business segments, which could hinder growth and operational efficiency[86] - The company faces risks related to the inability to extend commercial promotion rights for major racing events, which could significantly impact operational performance[85] Organizational Structure and Governance - The company implemented a new organizational structure with 22 project centers to enhance decision-making efficiency[40] - The governance structure complies with relevant laws and regulations, ensuring independent operation from the controlling shareholder[193] - The company has established a transparent information disclosure system to ensure timely and accurate communication with shareholders[195] - The company has a fully independent financial department, accounting system, and tax obligations[197] Research and Development - R&D investment for 2017 amounted to ¥14,486,676.86, a 44.81% increase from ¥10,004,004.76 in 2016, representing 5.13% of total revenue[59] - The company is investing 50 million RMB in research and development for new racing technologies over the next two years[180] Employee and Management - The company has a total of 349 employees, with 190 in the parent company and 159 in major subsidiaries[185] - The management team is composed of individuals with diverse professional experiences, contributing to the company's operational effectiveness[168][169][170][171][172] - The company has implemented a performance assessment mechanism linked to remuneration for directors and senior management[187] Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[113] - Future guidance estimates a revenue growth of 10-15% for 2018, with a focus on enhancing customer engagement[181]

Financial Performance - Operating revenue for the current period was CNY 61,217,535.07, an increase of 6.71% year-on-year[8] - Net profit attributable to shareholders decreased by 8.73% to CNY 7,490,591.22 compared to the same period last year[8] - Net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 13.62% to CNY 6,308,226.50[8] - Basic earnings per share decreased by 31.56% to CNY 0.1186[8] - Weighted average return on equity was 3.36%, down 17.29% year-on-year[8] - The estimated net profit attributable to shareholders for 2017 is projected to be between ¥33,000,000 and ¥40,000,000, representing a growth of 0.10% to 22.42% compared to the previous year[21] - Investment income increased by 190.98% to ¥1,408,794.68, mainly from returns on unused raised funds invested in financial products[16] - The company reported a 73.16% decrease in minority shareholders' profit to ¥390,441.20, due to lower earnings from a controlling subsidiary compared to the previous year[16] Assets and Liabilities - Total assets increased by 53.77% to CNY 418,137,316.71 compared to the end of the previous year[8] - Net assets attributable to shareholders increased by 63.40% to CNY 363,797,017.02 compared to the end of the previous year[8] - The company's cash and cash equivalents increased by 157.00% to ¥163,566,116.50, primarily due to funds raised from the IPO[16] - Prepayments rose by 496.90% to ¥19,090,165.58, mainly due to increased advance payments for project procurement[16] - Inventory increased by 51.75% to ¥24,777,974.48, attributed to unrecognized costs from public relations projects and annual event services[16] - The company's capital reserve increased by 230.90% to ¥174,214,651.43, resulting from changes related to the IPO[16] - The company’s total liabilities decreased significantly, with accounts payable for employee compensation dropping by 96.87% to ¥36,093.14[16] Cash Flow - Net cash flow from operating activities was negative at CNY -14,126,192.23, a decrease of 183.15% compared to the same period last year[8] - The net cash flow from operating activities decreased by 127.27% to -¥10,920,797.90, mainly due to slower sales collections[16] - The net cash flow from financing activities surged by 3197.62% to ¥136,966,000.00, primarily from funds raised during the IPO[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,565[12] - The largest shareholder, Xia Qing, holds 23.99% of the shares, with 15,150,000 shares pledged[12]