LSR(SZ:002858)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥116,672,833.91, representing an increase of 81.48% compared to ¥64,288,847.29 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was ¥6,938,534.99, a significant turnaround from a loss of ¥13,451,864.13 in the previous year, marking a 151.58% improvement[19]. - The net cash flow from operating activities increased by 14.26% to ¥36,924,437.77, compared to ¥32,316,675.10 in the same period last year[19]. - Total assets at the end of the reporting period reached ¥1,023,553,208.01, up 72.47% from ¥593,451,756.57 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company increased by 105.38% to ¥727,785,840.93, compared to ¥354,362,350.93 at the end of the previous year[19]. - Basic earnings per share improved to ¥0.0568 from a loss of ¥0.1071, reflecting a 153.03% increase[19]. - The weighted average return on net assets was 2.00%, a recovery from -3.10% in the same period last year, showing a 5.11% improvement[19]. - The company reported a total of 14,908,161.75 in sales of epidemic prevention materials, contributing significantly to its revenue[24]. - The sports segment contributed ¥89,543,607.04, accounting for 76.75% of total revenue, with a year-on-year growth of 39.28%[61]. - The karting business saw a significant increase of 249.72%, generating ¥11,996,976.49 in revenue[62]. Operational Highlights - The company operates multiple racing events, including the FIA Asian Formula 3 Championship, which hosted 5 races in the reporting period[28]. - The China Touring Car Championship (CTCC) held only 1 race in the first half of 2021 due to external safety incidents[28]. - The company has a diverse portfolio of racing events, including the China Karting Championship, which is the highest level of karting competition in China[28]. - The company operates various racing venues, including the Shanghai Tianma Circuit, which is a FIA Grade 4 circuit covering an area of 221 acres[31]. - The company has developed several proprietary racing event IPs, such as the Super Endurance Championship (SEC), which hosted 2 races in the reporting period[29]. - The company has hosted 5 events for the "Lisheng Super Track Festival" in the reporting period, promoting fan engagement[30]. - The company operates several racing experience centers, including the Wuhan Racing Experience Center, which spans 1.4 kilometers and officially opened in 2018[34]. - The Zhuzhou International Karting Track, opened in November 2017, is the first FIA-CIK standard karting track in South China, measuring 1.048 kilometers in length[35]. - The BMW Driving Experience Center in Shanghai, which opened in March 2017, covers an area of 45,000 square meters and integrates driving experiences with brand culture[33]. - The company manages multiple FIA-standard racetracks, which are expected to increase in number, enhancing the potential for hosting high-profile events like CTCC[40]. Strategic Initiatives - The company aims to expand its market presence by leveraging its dual industry drive of "automobile" and "sports" for future growth[27]. - The company is focused on enhancing its racing technology and services, contributing to the overall growth of the motorsport industry in China[27]. - The company aims to leverage new media trends to enhance audience engagement and transform traditional media partnerships into collaborative resource-sharing[41]. - The company plans to gradually improve revenue seasonality and reduce associated risks by diversifying business types and methods, aiming for increased revenue in the first three quarters[80]. - The company aims to enhance its competitiveness by attracting and retaining talented management and business personnel[79]. - The company plans to enhance its market expansion strategies through various subsidiaries and partnerships in the sports and automotive sectors[180]. Financial Management - The company has not classified any non-recurring gains as recurring gains in its financial reporting[24]. - The company has established a multi-tiered racing venue layout across key regions in China, enhancing customer engagement and supporting major racing events[56]. - The company has expanded its business model to include event services, focusing on high-quality execution for clients' events, which began in 2019[42]. - The company operates a closed-loop business model across the entire automotive sports industry chain, maximizing synergies and enhancing core competitiveness[54]. - The company reported a net cash increase of ¥404,452,353.22, a staggering 3,963.23% increase due to funds raised from a private placement[59]. - Operating costs rose to ¥77,531,409.37, a 41.56% increase from ¥54,767,564.87, primarily due to the normalization of operations post-pandemic[59]. - The management expenses decreased by 32.24% to ¥11,916,558.67, mainly due to reduced rental costs[59]. - The financial expenses increased by 36.92% to ¥3,058,807.42, attributed to foreign exchange losses[59]. Risk Factors - The company faces significant risks that may adversely affect its future development strategies and operational goals, as detailed in the management discussion section[5]. - The company faces risks related to high customer concentration, with the top five customers accounting for 33.99% of revenue in the first half of 2021[77]. - The company is at risk of not renewing commercial promotion rights for major events, which could significantly impact operational performance[78]. - The company is addressing talent shortages in the industry, which poses a risk to its operational and developmental capabilities[78]. - The company has implemented various contingency plans to mitigate risks associated with force majeure events that could lead to the postponement or cancellation of events[81]. Shareholder Information - The total number of shares after the recent changes is 126,320,000, with a breakdown of 29,086,556 restricted shares (23.03%) and 97,233,444 unrestricted shares (76.97%)[122]. - The company repurchased a total of 3,734,300 shares, representing 2.96% of the total share capital, with a total transaction amount of 40,017,812 RMB[125]. - The maximum repurchase price was 11.88 RMB per share, while the minimum was 9.79 RMB per share during the repurchase period[125]. - The company plans to use 40 million to 60 million RMB for share repurchase, with a maximum price of 15 RMB per share[124]. - The number of restricted shares decreased by 1,761,219 due to the release of certain executive lock-up shares[122]. - The company completed a non-public offering of 33,605,838 shares at a price of 11.62 RMB per share, which will be listed in August 2021[128]. - The total share capital increased from 126,320,000 to 159,925,838 shares due to the non-public offering[122]. - The company’s shareholders include significant holdings by executives, with a total of 30,847,775 restricted shares initially, now reduced to 29,086,556[126]. - The shareholder structure indicates a significant concentration of ownership, with the top two shareholders holding over 36% of the total shares[129]. Compliance and Governance - The company has not experienced any serious racing accidents since its establishment, thanks to robust safety measures and insurance coverage, which include public liability insurance and insurance for team members[80]. - The company has not faced any environmental penalties during the reporting period and adheres to environmental protection regulations[91]. - There were no significant lawsuits or arbitration matters during the reporting period[101]. - The company did not experience any non-operating fund occupation by controlling shareholders or related parties[96]. - The company has not engaged in any major contracts or guarantees during the reporting period[112]. - The company’s half-year financial report was not audited[98]. - There were no significant related party transactions during the reporting period[102]. - The company has not initiated any rural revitalization work as of the reporting period[92]. Accounting and Financial Reporting - The company adheres to the accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, and cash flows[184]. - The accounting period is from January 1 to December 31 each year[185]. - The company uses Renminbi as its functional currency for accounting purposes[187]. - The company has a short operating cycle, using 12 months as the standard for classifying the liquidity of assets and liabilities[186]. - Financial assets are classified into three categories upon initial recognition: measured at amortized cost, measured at fair value with changes recognized in other comprehensive income, and measured at fair value with changes recognized in profit or loss[194]. - Financial liabilities are classified into four categories upon initial recognition, including those measured at fair value with changes recognized in profit or loss[194]. - The company recognizes goodwill when the purchase cost exceeds the fair value of identifiable net assets acquired in a business combination[188]. - The company’s cash and cash equivalents include cash on hand and deposits that are readily available for payment[191]. - The company’s financial statements are consolidated, including all subsidiaries under its control[189]. - The company applies the effective interest method for subsequent measurement of financial assets measured at amortized cost[195].