LSR(SZ:002858)2020-08-02 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥64,288,847.29, a decrease of 61.60% compared to ¥167,430,920.77 in the same period last year[16]. - The net profit attributable to shareholders of the listed company was a loss of ¥13,451,864.13, a decline of 391.18% from a profit of ¥4,619,703.26 in the previous year[16]. - The basic and diluted earnings per share were both -¥0.1071, a decrease of 392.62% from ¥0.0366 in the same period last year[16]. - The company's revenue for the reporting period was ¥64,288,847.29, a decrease of 61.60% compared to ¥167,430,920.77 in the same period last year, primarily due to the impact of COVID-19 on domestic events[50]. - The net profit attributable to shareholders was a loss of ¥13,451,864.13, representing a decline of 391.18% year-on-year[50]. - The company's revenue in the sports industry was 64,288,847.29, a decrease of 61.60% compared to the previous year, with a gross margin of 14.81%, down 10.13% year-on-year[56]. - The racetrack operations generated revenue of 16,657,863.33, down 47.85% year-on-year, while event operations saw a revenue drop of 66.29% to 29,086,752.00[57]. - The company reported a net loss of approximately 3.68 million yuan in the first half of 2020, compared to a loss of 3.01 million yuan in the same period of 2019[87]. - The total comprehensive income for the first half of 2020 was a loss of CNY 8,204,019.85, compared to a profit of CNY 13,643,294.17 in the first half of 2019[162]. Cash Flow and Assets - The net cash flow from operating activities improved to ¥32,316,675.10, compared to a negative cash flow of ¥57,344,862.30 in the same period last year, representing a 156.35% increase[16]. - The company's total assets at the end of the reporting period were ¥657,536,465.40, down 11.08% from ¥739,462,888.77 at the end of the previous year[16]. - The company's current assets totaled RMB 347,889,972.81, down from RMB 437,184,603.71 at the end of 2019, indicating a decrease of about 20.3%[152]. - Cash and cash equivalents increased to RMB 128,693,244.75 from RMB 124,098,580.07, reflecting a growth of approximately 3.4%[151]. - Accounts receivable decreased significantly from RMB 206,960,334.14 to RMB 121,310,098.43, a reduction of around 41.4%[151]. - The company reported cash inflow from investment activities of ¥2,357,860.00, a decrease from ¥7,045,808.34 in the previous year[173]. Operational Impact of COVID-19 - Due to the COVID-19 pandemic, all domestic events were suspended, impacting the operations of the racing teams and automotive promotional activities[25]. - The company operates several key racing events, including the FIA Asian Formula 3 Championship and the China Touring Car Championship, with all events in 2020 expected to be postponed to the second half of the year due to the pandemic[25][26]. - The company's racing team operations are significantly impacted by the distribution of race events, with all planned events postponed to the second half of the year due to the pandemic[39]. - The automotive event promotion business has been severely affected by the pandemic, leading to cancellations of promotional activities by automotive manufacturers[40]. Business Strategy and Development - The company plans to expand its "Saka Alliance" brand to create a network of karting venues across China, similar to Starbucks, to increase consumer participation in motorsports[47]. - The company is focused on expanding its service offerings in the automotive sports industry, including training and equipment sales[24]. - The company aims to enhance its market presence through strategic operations in the racing culture sector[185]. - The company is actively exploring and nurturing the motorsport industry, which is still in its early stages in China, aiming to improve profitability in this niche market[79]. Risk Management - The company faces various risk factors and has outlined countermeasures in its report, emphasizing the importance of investor awareness of these risks[5]. - The company emphasizes enhancing customer satisfaction through professional event operation services to retain commercial promotion rights[89]. - The company plans to strengthen management and maintenance of facilities to minimize the risk of losing FIA certification[90]. - The shortage of high-quality talent in the industry poses a significant risk to the company's development, particularly in new business segments[90]. Shareholder and Equity Information - The company does not plan to distribute cash dividends or issue bonus shares for the first half of 2020[97]. - The total number of shares before the change was 126,320,000, with 51.55% being restricted shares, which decreased to 24.42% after the change[129]. - The total number of restricted shares held by major shareholders decreased significantly, with 夏青's shares reducing from 30,300,000 to 22,725,000[132]. - The total number of shareholders at the end of the reporting period was 6,829, indicating a stable shareholder base[134]. Research and Development - The company reduced its R&D expenditure to ¥5,727,518.46, down 21.61% from ¥7,306,672.57, due to the pandemic's impact on revenue[52]. - The company has allocated 300 million CNY for research and development in new technologies related to automotive safety and performance[86]. Compliance and Governance - The financial statements are prepared on a going concern basis, with no significant doubts regarding the company's ability to continue operations for the next 12 months[188]. - The company adheres to accounting policies for accounts receivable, fixed asset depreciation, intangible asset amortization, and revenue recognition[190]. - The financial statements comply with the requirements of the enterprise accounting standards, accurately reflecting the company's financial position, operating results, and cash flows[191].