Core Insights - Lisheng Sports held its 2025 Shanghai-listed company collective reception day and mid-year performance briefing on September 19, highlighting its operational strategy and ongoing projects [1] Group 1: Company Operations - Lisheng Sports currently operates three racetracks: Shanghai Tianma Racetrack (owned), Hunan Zhuzhou Racetrack (operated), and Hainan International Racetrack (under construction) [1] - The Tianma Racetrack is located in the Yangtze River Delta and attracts customers through unique projects like Tianma Lunji [1] - The Zhuzhou Racetrack integrates cultural tourism features to expand its audience [1] - The Hainan International Racetrack is expected to leverage tax-free policies upon completion to reach a broader demographic and offer diverse services [1] Group 2: Project Management and Development - The Hainan International Racetrack project is progressing steadily, with the company implementing strict project management to ensure timely construction [1] - Upon completion, the racetrack aims to achieve both social and economic benefits through high-quality management and operations [1] Group 3: Industry Position - Lisheng Sports is recognized as a leader in China's digital sports and mass fitness sectors, focusing on automotive sports operation services [1] - The company specializes in various sports-related businesses, including event management, club operations, venue management, equipment manufacturing and sales, and marketing services [1]

Core Insights - The article highlights the successful launch of "FOLO Fulu Ball," a lightweight smart sports project developed by Beijing Fulu Lai Lai Technology Co., which gained significant attention at the 2025 China International Service Trade Fair [1][3] Company Overview - Beijing Fulu Lai Lai Technology Co. has developed "FOLO Fulu Ball," which features an innovative form of "contactless esports dodgeball," making it a standout product in the digital sports sector [1][3] - The company aims to redefine the experience of smart sports for all ages through engaging design and technology integration [6] Technological Integration - The project is supported by China Unicom Beijing Branch, which provides stable and high-speed 5G network technology, allowing for the integration of AI algorithms and mixed reality (MR) technology into the sports experience [3] - "FOLO Fulu Ball" incorporates six technological breakthroughs that create a competitive edge in the market, enhancing user engagement and enjoyment [3] User Experience - The product allows for contactless AR battles, significantly lowering the barriers to entry for sports participation, as users only need motion capture sensors and lightweight headsets [3] - It enables quick deployment in various settings, breaking free from traditional venue constraints, thus promoting the idea of "exercise anytime, anywhere" [3] Market Appeal - The design caters to modern lifestyles with a 2-minute game format, appealing to busy individuals who can fit in quick sessions during breaks [4] - The interactive design aims to alleviate the monotony of traditional sports, promoting a "happy exercise" model that helps users relieve stress [6] Social and Cultural Integration - The product features a mobile AR live-streaming system, enhancing social interaction by allowing users to share experiences and invite friends to participate remotely [6] - It incorporates traditional cultural elements, such as the "Chinese fist salute," to resonate with younger audiences while showcasing the blend of technology and culture [6] Strategic Vision - The CEO of Beijing Fulu Lai Lai emphasizes the goal of creating a digital sports entry point for all age groups, aiming to transform exercise from a chore into an enjoyable activity [6] - The initiative aligns with national strategies for promoting fitness and health in China, positioning "FOLO Fulu Ball" as a key player in the digital sports landscape [6]

Core Viewpoint - The State Council has set a goal for the sports industry to exceed 7 trillion yuan by 2030, aiming to cultivate world-class sports enterprises and events, with a focus on enhancing sports consumption through digital innovations [1] Group 1: Sports Industry Development - The high-end golf city courses and the Golf Respect China Open align with national policies, enhancing the overall strength and competitiveness of China's sports industry through digital sports [1][15] - The Golf Respect (Tianjin) city course has been recognized as a typical case of intelligent sports venues in 2024, showcasing the successful application of digital design [8] Group 2: Innovation in Sports Facilities - The Golf Respect (Yanbian) city course creatively combines digital simulation technology with real greens, allowing for year-round access and expanding sports product offerings [6] - This innovative model breaks the limitations of traditional golf, providing urban residents with convenient access to the sport and enriching the supply of sports products [6][8] Group 3: Consumer Engagement and Event Expansion - The Golf Respect China Open, as a self-owned event IP, has significantly increased its prize pool from 1.2 million yuan in 2022 to 10 million yuan in 2025, further reaching 20 million yuan in 2026, attracting both professional and amateur participants [8][11] - The event's "zero-threshold" participation model breaks down barriers, expanding the consumer base and stimulating sports consumption through diverse training, viewing, and equipment purchasing opportunities [11] Group 4: Industry Integration and Employment Opportunities - The development of Golf Respect city courses and the China Open has fostered a complete industry chain, including simulator manufacturing, venue operation, event management, and digital content creation [11][13] - The integration of the Golf Respect (Yanbian) city course with local culture and tourism has created new employment opportunities in digital golf engineering and venue operations [13] Group 5: Digital Sports Leadership - The initiatives reflect a commitment to integrating digital sports, venues, and competitions, transforming participation and experience in golf while generating social value across various sectors [15]

Group 1 - The core viewpoint emphasizes the transformation of old factories into sports venues, enhancing sports consumption potential through increased supply of sports facilities [1] - As of 2024, the total area of sports facilities in the country is projected to reach 4.23 billion square meters, an increase of 1.131 billion square meters compared to the end of the 13th Five-Year Plan [1] - The government has issued guidelines to encourage the use of industrial and commercial spaces for creating sports facilities, aiming to better meet diverse public needs [2] Group 2 - Sports consumption has significant growth potential, with events like the 2025 Qingdao Marathon expected to generate 349 million yuan in comprehensive consumption [2] - The integration of sports with commercial spaces and digital technology is crucial for creating new consumer experiences and enhancing engagement [3] - The national sports industry has seen an average annual growth rate of over 10% in the past five years, with the total scale expected to exceed 7 trillion yuan by 2030 [3]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook based on its strong market position and growth potential in the sports industry [5][48]. Core Insights - The sports industry in China is experiencing rapid growth driven by policy support, consumer upgrades, and industry integration, with the total scale expected to reach 5 trillion yuan by 2025 [7][14]. - The company has a rich portfolio of sports resources and competitive advantages, positioning it well to capitalize on the expanding market [10][23]. - The company's revenue and profitability are showing signs of recovery, with a projected increase in net profit from -39 million yuan in 2024 to 120 million yuan by 2027 [6][8]. Financial Performance and Projections - Revenue is expected to grow from 441 million yuan in 2024 to 892 million yuan by 2027, with a compound annual growth rate (CAGR) of 27.68% [6][48]. - The company anticipates a significant turnaround in net profit, with projections of 61 million yuan in 2025 and 120 million yuan in 2027, reflecting a growth rate of 37.65% [6][48]. - The gross profit margin is expected to improve, reaching 30.30% by 2027, indicating enhanced operational efficiency [46]. Industry Dynamics - The Chinese sports industry is becoming a crucial driver of economic growth, supported by government policies and increasing consumer interest in sports [14][18]. - The company is recognized as a pioneer in the marketization of sports events and digital upgrades, enhancing its competitive edge [23][25]. - The report highlights successful examples of sports IP operations, such as Formula One, which can serve as a model for the company's future strategies [18][23]. Business Model and Strategy - The company operates a comprehensive sports ecosystem, including event management, venue operations, and digital sports initiatives, which are expected to drive revenue growth [25][30]. - The company has established a multi-tiered event matrix, enhancing its market presence and operational capabilities across various levels of sports events [28][29]. - The focus on digital transformation and innovative event formats is anticipated to strengthen audience engagement and revenue streams [26][30].

Core Viewpoint - Lisheng Sports is a leading automotive sports operation service provider in China, actively promoting business growth and digital transformation in the sports industry, with a focus on various revenue streams and strategic initiatives for future expansion [1][2]. Financial Performance - In the first half of 2025, the company reported revenue of 272 million yuan, a year-on-year increase of 21.94%, and a net profit attributable to shareholders of 15.32 million yuan, up 11.97%. Basic earnings per share were 0.0946 yuan, reflecting a growth of 4.07% [2]. - For the second quarter, revenue reached 163 million yuan, showing a significant year-on-year growth of 38.53%, while net profit surged over three times to 8.88 million yuan [2]. Business Segments - Core business revenue breakdown: approximately 70% from event operations and about 25% from venue management. The overseas revenue is driven by new international events, while domestic revenue primarily comes from events and venue operations [2]. Strategic Initiatives - The company has been authorized to operate the Men's China Tour Golf events, hosting seven events in the first half of the year, including two co-sanctioned events with the European Tour. Plans are in place to increase the number of events to around 20 for the full year [2]. - The Hainan International Circuit has seen an investment of 184 million yuan in self-owned funds, with expected revenue contributions starting in 2027. The company is also in the process of refinancing, currently under review by the exchange [2]. Market Engagement - The participation of celebrities like Wang Yibo in events has positively impacted ticket sales and event promotion, and the company aims to leverage these opportunities to enhance event value [2]. Technological Development - The company is investing in digital sports technology, focusing on AI applications across various sports sectors. It holds a 49.1916% stake in Yuedong Tianxia, aiming to empower its development [2]. - Investment interests extend beyond traditional business areas to include the sports industry and AI robotics, with a specific mention of investment in Whale Robot [2].

Group 1 - The core viewpoint emphasizes the importance of sports in enhancing public health, fulfilling people's aspirations for a better life, promoting comprehensive development, driving economic growth, and showcasing national cultural soft power [1] - In 2023, the total scale of China's sports industry reached 36,741 billion yuan, with a value-added of 14,915 billion yuan, accounting for 1.15% of GDP, an increase of 0.07 percentage points from the previous year [1] - The sports service industry contributed 10,849 billion yuan, representing 72.7% of the total value-added in the sports industry [1] Group 2 - The increase in sports consumption is driven by improved living standards, with sports becoming an essential part of daily life due to rising health awareness and leisure time [2] - Government policies and support have significantly enhanced the development of the sports industry, improving infrastructure and fostering competitive sports enterprises [2] - Technological innovations, such as big data and artificial intelligence, have facilitated the digital transformation of the sports industry, enhancing operational efficiency and consumer experience [2] Group 3 - Challenges in the sports industry include the slow development of niche sports and digital sports, with a need for improved business models and social capital participation [3] - There is a gap between the supply of high-quality sports events and products and the public's consumption expectations, necessitating a focus on problem-solving and high-level adaptation of supply and demand [3] - Encouragement for local governments to develop creative sports events and explore business models for niche sports and digital sports to stimulate market vitality [3] Group 4 - Support for the development of the sports industry in economically underdeveloped regions is essential for balanced growth, with policies aimed at improving infrastructure and service levels [4] - Collaboration across multiple departments is needed to enhance the policy framework for sports industry development, focusing on infrastructure, talent cultivation, and technology application [4] - Creating a favorable sports consumption environment involves protecting consumer rights and enhancing satisfaction through measures like consumption vouchers and rewards [4]

Company Overview - Lisheng Yundong (Shanghai) Sports Technology Co., Ltd. is a leading automotive sports service provider in China, focusing on the marketization of sports events and the digital upgrade of the industry [2]. - The company’s main business includes sports event management, venue operation, marketing services, sports club management, sports equipment manufacturing and sales, and digital sports [2]. Business Development - In the first half of 2025, the company actively promoted various business segments in line with its development strategy and annual operational plan [3]. - The company repurchased shares worth over 22 million CNY to stabilize market expectations and maintain company value [3]. Strategic Initiatives - The company plans to leverage the policy advantages of the Hainan Free Trade Port, which will officially operate on December 18, 2025, to create an international automotive sports and culture exchange platform [4]. - An investment of 147 million CNY has been made to construct the Hainan International Circuit, with ongoing efforts in refinancing projects [4]. Operational Performance - The company has successfully conducted various events, including international, national, and regional competitions, within the annual event calendar [5]. - The golf tour has been actively promoted since obtaining operational authorization at the end of March, with more events planned for the second half of the year [5]. Future Plans - The company aims to expand its involvement in various sports, including tennis, cycling, and marathons, while continuing to focus on motorsports [6]. - The strategy includes a long-term, full-industry chain expansion, covering various derivative event IPs, venue operations, and sports products [6]. Technological Integration - The company is investing in sports technology, including AI and robotics, to enhance its core business and expand its event categories [7]. - The "Yuedong Circle" app focuses on sports and aims to integrate AI technology into sports health and education, promoting digital and intelligent upgrades in the industry [8].

Core Viewpoint - The Guangzhou Municipal Government has issued the "Guangzhou Sports Strong City Construction Plan (2024-2035)", which emphasizes the promotion of intelligent sports innovation development through artificial intelligence and digital technology [1] Group 1: Intelligent Sports Development - The plan aims to cultivate and attract digital sports industries such as e-sports, online competitions, smart cycling, smart rowing, and simulated flying [1] - It highlights the role of AI models, virtual reality, and 5G technology in enhancing the overall fitness sector [1] Group 2: Sports Equipment and Technology - The initiative encourages sports equipment companies to develop and produce smart fitness equipment, wearable devices, products for elderly sports, and integrated health and sports products [1] - It aims to drive the transformation and upgrading of Guangzhou's sports manufacturing industry [1] Group 3: Collaborative Innovation - The plan supports the formation of joint ventures between sports enterprises and higher education institutions or research organizations, focusing on areas like computer vision, smart sports rehabilitation devices, and sports biomechanics [1] - It promotes the application and dissemination of AI technology in training systems, sports prescriptions, and sports modeling [1] Group 4: Industrial Park and High-tech Enterprises - The plan encourages the establishment of intelligent sports industrial parks to attract high-end sports enterprises' R&D headquarters to settle in Guangzhou [1] - It aims to nurture and incubate a batch of high-tech enterprises in intelligent sports, virtual sports, and digital sports [1]

Core Viewpoint - The digital sports industry is rapidly evolving, integrating technology with sports to create new opportunities and drive the digital economy forward [1][2]. Group 1: Industry Trends - Digital sports are transitioning from auxiliary tools to core engines of the industry, driven by innovations such as smart wearable devices, 5G live streaming, and AI sports prescriptions [2]. - The integration of digital sports with national health initiatives is seen as a crucial strategy for enhancing public health management [2][3]. - The International Olympic Committee is embedding artificial intelligence and digitalization into top-tier global events, indicating a significant shift in the future of sports [2][3]. Group 2: Development Initiatives - Beijing is positioning itself as a model region for digital sports development, with initiatives like the "Beijing Winter Olympic Village Smart Sports Community" aimed at enhancing community health and fitness through technology [4]. - The city plans to host over 1,280 sports events by 2025, including 198 premium events, to promote sports economy and cultural integration [4]. Group 3: Business Innovations - Companies are exploring various pathways in digital sports, from content dissemination to health management, accelerating the industry's commercialization [5]. - Innovations in immersive event broadcasting, such as AI-driven commentary and 8K streaming, are reshaping how sports content is produced and consumed [6]. - The emergence of AI models for personalized training and dietary recommendations is creating new health management solutions in the sports sector [6]. Group 4: Future Directions - The boundaries of sports are expanding to include esports, robotic racing, and virtual sports, indicating a shift towards more diverse forms of athletic competition [7]. - The esports industry is transitioning from a niche market to a mainstream sports form, driven by global events and the internationalization of Chinese enterprises [7].