LSR(SZ:002858)2022-04-07 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2021, representing a year-on-year increase of 15% compared to 2020[15]. - The net profit attributable to shareholders was RMB 200 million, which is a 10% increase from the previous year[15]. - The company's operating revenue for 2021 was CNY 280,885,992.17, representing a 40.37% increase compared to CNY 200,097,574.02 in 2020[21]. - The net profit attributable to shareholders for 2021 was CNY 3,183,267.48, a significant turnaround from a net loss of CNY 50,981,973.82 in 2020, marking a 106.24% improvement[21]. - The net cash flow from operating activities for 2021 was CNY 73,745,194.03, which is a 2.53% increase from CNY 71,923,260.76 in 2020[21]. - The total assets at the end of 2021 amounted to CNY 1,135,776,651.18, reflecting a 91.38% increase from CNY 593,451,756.57 at the end of 2020[21]. - The net assets attributable to shareholders increased by 106.28% to CNY 730,975,464.71 at the end of 2021, up from CNY 354,362,350.93 at the end of 2020[21]. - The basic earnings per share for 2021 was CNY 0.0239, compared to a loss of CNY 0.4100 per share in 2020, indicating a 105.83% improvement[21]. - The company reported a quarterly revenue of CNY 102,687,753.88 in Q4 2021, which was the highest among the four quarters[25]. - The company achieved operating revenue of ¥280,885,992.17, a year-on-year increase of 40.37%[66]. - Net profit attributable to shareholders reached ¥3,183,267.48, up 106.24% year-on-year[66]. - Overall gross margin improved to 30.51%, reflecting a 12.05% increase compared to the previous year[66]. User Engagement and Market Expansion - User data showed an increase in active users by 25%, reaching a total of 500,000 users by the end of 2021[15]. - Future guidance indicates expected revenue growth of 20% for 2022, driven by new product launches and market expansion[15]. - The company plans to expand its market presence by opening 50 new racing venues across China in the next two years[15]. - The company anticipates further growth in user engagement and market expansion as the sports industry continues to recover and evolve post-pandemic[35]. - By 2025, the sports industry in Shanghai is expected to double in scale compared to 2020, reaching a total size of approximately 500 billion yuan, with the sports industry's added value accounting for about 2.0% of the city's GDP[36]. - The company plans to expand its chain of karting venues across major cities, expecting steady growth in revenue and profits in the coming years[69]. - The company is focusing on digital sports strategies to enhance its dual industry development of "vehicles" and "sports," driven by new technologies and concepts[35]. Research and Development - Research and development expenses increased by 20% to RMB 100 million, focusing on new energy vehicle technologies[15]. - The company is developing electric go-karts, with the first batch expected to be launched in 2022[70]. - The company is developing a new fuel data collection and analysis system aimed at improving efficiency and safety in racing[88]. - A new electric go-kart pedal adjustment technology is being researched to enhance user experience and meet consumer demands[89]. - The company is working on a new type of quick fuel connection to prevent oil spillage and improve service efficiency[89]. - The development of a load measurement technology for racing cars aims to enhance safety and operational reliability[88]. - The number of R&D personnel increased by 25% from 60 in 2020 to 75 in 2021[90]. - The proportion of R&D personnel with a bachelor's degree rose by 23.64%, from 55 in 2020 to 68 in 2021[90]. Strategic Initiatives - The company is exploring potential mergers and acquisitions to enhance its competitive position in the motorsport industry[15]. - The company aims to align with national policies that project the sports industry to reach a total scale of ¥5 trillion by 2025[34]. - The company is committed to promoting the digital transformation of fitness management and the construction of smart sports venues[6]. - The company aims to enhance the digital transformation of sports events, focusing on intelligent technology applications in key areas such as event organization, participation, and viewing[8]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and diversify its offerings[152]. - The company plans to leverage 5G and other new generation information technologies to improve venue management and event services[41]. Risk Management - The company emphasized risk management strategies in light of potential market volatility and regulatory changes[4]. - The company faces risks related to the inability to extend commercial promotion rights for major sports events, which could significantly impact its performance[129]. - The company is exposed to macroeconomic fluctuations that could affect its clients' marketing budgets and, consequently, its own business performance[131]. - The company recognizes the seasonal revenue fluctuations, particularly in Q4, and is working to diversify its revenue streams to mitigate this risk[132]. Governance and Compliance - The company has maintained a governance structure that complies with relevant laws and regulations, ensuring independent operations from its controlling shareholder[140]. - The board of directors consists of eight members, including three independent directors, which meets legal requirements[141]. - The company has established a complete independent financial management system, ensuring financial independence from the controlling shareholder[144]. - The company actively communicates with stakeholders to balance interests among shareholders, employees, and society[142]. - The company has a diverse board with independent directors, ensuring compliance and governance standards are met[148]. Employee Engagement and Incentives - The company implemented a new employee stock ownership plan and stock option incentive plan in October 2021, covering all core staff to enhance motivation[64]. - The total number of employees at the end of the reporting period is 448, with 141 in the parent company and 307 in major subsidiaries[180]. - The company has implemented a performance appraisal system linked to salary incentives, promoting long-term and stable development[181]. - The total number of employees participating in the employee stock ownership plan is 11, holding a total of 4,413,100 shares, which accounts for 2.76% of the company's total equity[189]. Future Outlook - The company plans to continue using the unused raised funds for committed investment projects[112]. - The company is committed to innovation, focusing on the development of new technologies to improve service delivery and customer satisfaction[155]. - The company provided guidance for the next quarter, expecting revenue to be between $160 million and $170 million, indicating a growth of 7% to 13%[163]. - New product launches are anticipated to contribute an additional $20 million in revenue over the next year[163]. - The company plans to optimize its event structure and develop proprietary IP events, particularly in the new energy vehicle sector[124].