LSR(SZ:002858)2020-04-07 16:00Share 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].