LSR(SZ:002858)2021-04-14 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2020, representing a year-on-year increase of 15% compared to 2019[14]. - The net profit attributable to shareholders was RMB 150 million, which is a 10% increase from the previous year[14]. - The company's operating revenue for 2020 was ¥200,097,574.02, a decrease of 54.54% compared to ¥440,135,434.52 in 2019[20]. - The net profit attributable to shareholders for 2020 was -¥50,981,973.82, representing a decline of 307.87% from ¥24,525,755.97 in 2019[20]. - The net profit after deducting non-recurring gains and losses was -¥62,788,839.13 in 2020, a decrease of 638.35% compared to ¥11,663,124.23 in 2019[20]. - The overall gross margin was 18.46%, down 10.34% year-on-year[61]. - The event operation business generated revenue of ¥71,347,765.46, a decrease of 71.18% year-on-year, accounting for 35.66% of total revenue[61]. - The karting sales business achieved revenue of ¥14,206,944.69, an increase of 7.68% year-on-year, with a profit margin of 11.28%[64]. - The company reported a revenue of ¥200,097,574.02, a year-on-year decrease of 54.54%[61]. - Revenue from the sports segment was ¥179,014,661.59, accounting for 89.46% of total revenue, down 59.33% from the previous year[72]. Market Expansion and Strategy - The company plans to expand its market presence by opening 10 new racing venues in 2021, aiming for a 30% increase in user participation[14]. - Future guidance indicates an expected revenue growth of 20% for 2021, driven by new product launches and market expansion[14]. - The company is exploring potential acquisitions in the sports entertainment sector to enhance its service offerings[14]. - The company aims to leverage existing racing vehicles and modification services to meet the demand from individual enthusiasts for club racing teams[43]. - The company plans to open 40 new chain karting venues in first- and second-tier cities as part of its strategy to attract C-end consumers[65]. - The company is actively exploring monetization of sports and digital assets to create new profit models[65]. - The company aims to improve the efficiency of raised fund usage and investment returns through the acquisitions, enhancing its core business competitiveness[111]. Impact of COVID-19 - The company's financial performance was impacted by the COVID-19 pandemic, leading to a temporary halt in operations for several business segments in the first half of 2020[29]. - The company’s event operations faced disruptions due to COVID-19, with most revenue concentrated in the second half of the year[40]. - Due to the COVID-19 pandemic, automotive manufacturers largely canceled promotional activities in the first half of the year, affecting revenue recognition[45]. - The company anticipates a gradual reduction in the negative impact of COVID-19 as vaccination efforts progress, while maintaining cost control and operational efficiency[122]. Assets and Liabilities - The total assets of the company reached RMB 2.5 billion, reflecting a 12% increase from the previous year[14]. - The company's total assets at the end of 2020 were ¥593,451,756.57, down 19.75% from ¥739,462,888.77 at the end of 2019[20]. - The company's equity assets decreased by 84.02% at the end of the reporting period compared to the previous period, primarily due to impairment provisions related to the joint venture WSC Asia Limited impacted by COVID-19[53]. - Accounts receivable decreased by 52.39% at the end of the reporting period compared to the previous period, attributed to a decline in revenue and collections due to the pandemic[53]. - The company reported an asset impairment loss of -23,962,345.64 CNY, primarily due to goodwill impairment and depreciation of certain fixed assets[91]. Research and Development - Research and development expenses increased by 20% to RMB 100 million, focusing on new energy vehicle technologies[14]. - Research and development expenses amounted to 14,609,644.97 CNY, which is 7.30% of the operating revenue, up from 4.33% the previous year[85]. Customer Engagement and Events - User engagement metrics showed a growth of 25% in active users across the company's platforms[14]. - The company has implemented new strategies to enhance customer experience, including the introduction of an online booking system for events[14]. - The company is focused on expanding its event portfolio and enhancing user engagement through innovative racing formats and community events[30]. - The company launched the "Super Endurance Championship" (SEC) in 2020, hosting 4 rounds of endurance races across its circuits[30]. - The company managed to conduct 12 events for the Lisheng Super Track Festival in 2020, promoting motorsport culture and community engagement[31]. Shareholder and Equity Information - The company has no plans to distribute cash dividends or issue bonus shares for the fiscal year 2020[6]. - The company will not distribute cash dividends for 2020 due to the adverse impacts of the COVID-19 pandemic and has repurchased 2,403,300 shares for a total of ¥26,481,702[134]. - The company has maintained a consistent approach to share repurchases, treating them as equivalent to cash dividends in its financial reporting[141]. - The company has established a commitment that any share reduction price will not be lower than the issuance price during the two years following the expiration of the lock-up period[143]. Compliance and Governance - The company has not engaged in any major related party transactions during the reporting period[164][165][166][167][168]. - The company has maintained compliance with environmental regulations and has not faced any penalties related to environmental protection[180]. - The company has not faced any delisting situations or bankruptcy restructuring matters[157]. - The company has not initiated any poverty alleviation plans during the reporting year[178].