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 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].

Core Viewpoint - The forum on digital sports industry development emphasizes the creation of an innovative ecosystem for digital sports, analyzing innovation models and exploring future opportunities in the sector [1]. Group 1: Government and Institutional Support - Beijing is accelerating its development as a global benchmark city for the digital economy, with Chaoyang District focusing on digital sports as a key development direction [2]. - The China Technology Economics Association aims to build an innovative bridge and cultivate an ecosystem for digital sports through its dedicated committee [1][2]. Group 2: Digital Sports Innovations - The "Beijing Winter Olympic Village Smart Sports Community" was inaugurated, transforming community spaces into innovative digital sports environments [3]. - The "Digital Sports Innovation Center" was launched to integrate quality resources in the sports technology field, promoting innovation and industry development [3]. Group 3: Expert Insights and Discussions - Experts highlighted the role of digital technology in optimizing training and ensuring fair competition through smart referee systems, emphasizing the integration of AI and sports technology [5]. - Roundtable discussions focused on "Digital Sports Scene Innovation and Internationalization" and "Digital Sports Model Innovation and Industrialization," featuring insights from various sectors [9].

Summary of Lisheng Sports Conference Call Company Overview - **Company**: Lisheng Sports - **Industry**: Sports Event Management and Operations Key Points and Arguments Financial Performance - Lisheng Sports achieved a record high total revenue of over 400 million yuan in 2024, despite facing long-term equity investment losses and goodwill impairment [2][8] - Core racing and event operations remained profitable, while emerging karting and digital sports businesses incurred losses [2][8] - The company expects improved performance in 2025 due to reduced risks and an employee stock ownership plan [2][8] Business Strategy and Expansion - The company is expanding its strategy from racing to a broader sports domain, having secured golf event authorization in 2025 and planning to extend into tennis, cycling, and marathons [2][4] - The golf business will encompass events, practice facilities, and equipment, with expected revenue contributions starting in 2025 and significant growth anticipated post-2026 [2][5] - The Haikou racetrack is projected to be completed by the end of 2026, contributing to revenue from 2026 to 2027, benefiting from Hainan's free trade zone operations and tourism consumption [2][6] Market Outlook - The company is optimistic about the golf market, predicting that a well-structured full industry chain could surpass the scale of its current racing business [2][7] - Long-term revenue target is set to exceed 1 billion yuan through a "5+4+2" model [2][7] Revenue Streams and Profitability - The commercial value of golf events includes sponsorship, registration fees, merchandise, and broadcasting rights, with significant profit potential once initial costs are covered [2][8] - The expected revenue for golf events is around 400 million yuan, with profits projected between 150 million to 200 million yuan [12] Future Developments - The company plans to explore other sports events like marathons and tennis in 2026, contingent on progress in 2025 [14] - Additional racetrack projects are planned outside Hainan, driven by the growing demand for performance cars in China [15] Challenges and Risks - The company faced challenges in the past year due to long-term equity investment losses and goodwill impairment, alongside losses in karting and digital sports due to high initial investments [8] - The focus for 2025 will be on ensuring profitability and avoiding large-scale loss-making investments, particularly in AI and digital sports [18] Market Comparison and Insights - Domestic golf event profitability is expected to improve through marketization, with potential comparisons to successful overseas models like the European Tour [9][10] - The company is analyzing the commercial viability of various sports events, considering market competition and audience characteristics [20] Important Milestones - Key milestones to watch in 2025 and 2026 include developments in the golf business, the construction of the Haikou racetrack, and the progress of the company's capital increase and buyback plans [21]

Group 1 - The 15th National Games will be held in November 2025 in the Guangdong-Hong Kong-Macao Greater Bay Area, marking the first time a national-level comprehensive sports event is jointly hosted by these regions [2] - Guangzhou is tasked with integrating resources from the Greater Bay Area and enhancing regional collaboration, leveraging its unique position and rich sports culture [2] - The event aims to incorporate advanced digital technologies, such as the "All Games Guangzhou" app, to promote the integration of digital sports industries across the Greater Bay Area [2] Group 2 - The 15th National Games will serve as a platform for citizens to experience smart living, featuring innovations like "AR digital RMB wallets," "metaverse cloud sports village," and "digital human volunteers" [2] - The event is expected to stimulate interest in sports and contribute to the development of Guangzhou's sports economy [3] - Future considerations for transforming smart city initiatives include market-oriented venue operations and engaging the public to enhance venue vitality [2]

Core Insights - The sports consumption market in China is experiencing significant growth, with an expected consumer spending of 53.97 billion yuan during the May Day holiday and a projected market size of 602.1 billion yuan by 2025, reflecting a year-on-year growth of 14.2% [1][5] Group 1: Market Trends - The sports equipment market is seeing a shift towards professional, customized, and smart products, driven by changing consumer preferences and the need for personalized solutions [2][3] - The rise in cycling enthusiasm among young people has led to a substantial increase in sales of cycling gear, while camping trends have boosted the market for outdoor camping equipment [1][5] Group 2: Technological Integration - Smart devices are becoming integral to the sports experience, with products like smart sports watches enhancing user engagement by tracking performance metrics and minimizing distractions [3][4] - The integration of advanced technologies such as 5G, AI, and VR is transforming sports events into immersive experiences, enhancing both the viewing and participation aspects [4][5] Group 3: Policy and Economic Impact - Government initiatives are promoting health consumption and sports participation, with policies aimed at expanding the sports event landscape and stimulating economic growth through sports [5][6] - The collaboration between sports and other sectors, such as tourism and healthcare, is creating new market opportunities and driving the evolution of the sports industry into a hub connecting various aspects of life and economy [6]

Group 1: Core Insights - The 137th Canton Fair is a significant event showcasing Guangzhou's transition from a "thousand-year commercial city" to an "international consumption center" through innovation and industry collaboration [1] - Guangzhou's exhibition industry is integrated into the "12218" modern industrial system, becoming a key driver for high-quality urban economic development, with exhibition area reaching 11.86 million square meters in the previous year, a growth of 8.9% [1][6] - The Guangzhou International Hair Products Expo demonstrated the strong market potential of the hair products industry, with an intention to transact over 50 million RMB on the first day, attracting over 30,000 attendees [2] Group 2: Industry Integration - The exhibition industry in Guangzhou is becoming a hub connecting various industries, facilitating a shift from "selling globally" to "linking globally" [2][3] - The integration of exhibitions with cultural consumption has led to a surge in events like anime and gaming expos, which are crucial for driving consumer spending and diversification [4][5] - The Guangzhou government is actively supporting the exhibition industry through policies aimed at enhancing scale, internationalization, and digitization, with 358 exhibitions planned for 2024 [6] Group 3: Automotive Sector - The automotive market in Guangzhou is experiencing a consumption boom, with significant attendance at auto shows during the May Day holiday, showcasing various new models [7] - Policies such as trade-in incentives and promotional offers have significantly boosted consumer interest and sales in the automotive sector [7] - The synergy of policy, technology, and consumer demand is driving the automotive market's vitality, with a notable increase in inquiries and sales during the holiday period [7] Group 4: Sports and Technology Integration - The Canton Fair is facilitating the globalization of the sports industry, providing a platform for sports enterprises to explore overseas markets [9] - The integration of digital technology in sports is creating new opportunities for innovation and entrepreneurship, with the sports industry in Guangzhou exceeding 200 billion RMB in total scale [10] - Events like the "Guangzhou Sports Industry Innovation Development Forum" highlight the collaboration between technology and sports, showcasing advancements such as robotic applications in sports events [8][10]