Core Viewpoint - Lisheng Sports is responding to the Shenzhen Stock Exchange's inquiry regarding its application for a specific stock issuance, addressing key issues related to its business operations and fundraising projects [1] Group 1: Business Performance and Revenue Analysis - Lisheng Sports heavily relies on Top Speed and Shanghai Qingsu for its revenue, with significant growth expected from Top Speed's overseas events in 2023-2024, contributing to overall revenue increase [2] - The company's revenue for the reporting period was 258.30 million, 405.17 million, 440.70 million, and 271.72 million, with a notable increase in 2023 due to the recovery of domestic and international events, particularly overseas events [2] - Revenue growth in 2023 is attributed to improved performance in venue operations, event management, marketing services, and digital sports, with overseas event income expected to remain sustainable [3] Group 2: Profitability Challenges and Strategies - Lisheng Sports has experienced a continuous decline in net profit over the past three years, with 2023 showing revenue growth but no profit increase due to rising asset impairment losses and insufficient gross profit to cover expenses [4] - The company is implementing strategies such as strict project evaluations, shutting down inefficient operations, expanding overseas markets, and developing electric racing standards to improve performance [4] Group 3: Inventory and Accounts Receivable Analysis - Inventory impairment provisions are primarily concentrated in venue operations and sports club management, with the latter facing challenges due to declining revenue [5] - Accounts receivable growth aligns with the company's operational scale, with sufficient bad debt provisions and good collection rates from overseas clients, indicating sustainable overseas revenue [5] Group 4: Fundraising Project Insights - The company plans to raise up to 498 million for the Hainan New Energy Vehicle Experience Center International Circuit project and to supplement working capital, with projected annual revenue of 207.50 million and a net profit of 52.09 million from the project [6] - The project is expected to have advantages in operational model, site planning, and event scheduling compared to existing circuits, and will not significantly divert revenue from current operations [6] Group 5: Investment Pricing and Related Party Verification - The investment pricing for Hainan Ecological Park and Hainan Automotive Development is deemed reasonable, with no related party transactions identified between the company and other shareholders [7] - The acquisition of equity in Yuedong Tianxia is also based on reasonable pricing, with no signs of benefit transfer [7]