Investment Rating - The report maintains an "Accumulate" rating for the company, indicating a forecasted relative performance increase of 5% to 15% over the next 6 to 12 months [3][7]. Core Views - The company's fundamentals are accelerating as expected, with both revenue and profit showing high growth rates. The company is expected to continue benefiting from policies promoting sports consumption and industry trends [4][5]. - In the first half of 2025, the company achieved revenue of 272 million yuan, a year-on-year increase of 21.9%, and a net profit attributable to shareholders of 15 million yuan, a year-on-year increase of 12.0%. In the second quarter of 2025, revenue reached 163 million yuan, a year-on-year increase of 38.5%, with a net profit of 9 million yuan, a year-on-year increase of 318.9% [5]. Summary by Sections Financial Performance - The company is projected to achieve revenues of 441 million yuan in 2024, 522 million yuan in 2025, and 677 million yuan in 2027, with growth rates of 9%, 19%, and 14% respectively [3][6]. - The net profit attributable to shareholders is expected to turn positive in 2025, reaching 32 million yuan, with a significant year-on-year growth of 181% [3][6]. Business Operations - The company operated 55 sports events in the first half of 2025, up from 45 in the same period of 2024, and has introduced new events such as the China GT Supercar Championship and the China Men's Professional Golf Tour [5]. - Revenue from sports venue operations in the first half of 2025 was 67 million yuan, a year-on-year increase of 22.7%, while revenue from sports event operations was 192 million yuan, a year-on-year increase of 30.2% [5]. Market Trends - The report highlights the government's focus on promoting event economics as a means to stimulate consumption and economic growth, which is expected to benefit the company as a key player in the sports service sector [5].

Group 1: Company Overview and Performance - Lisheng Yundong (Shanghai) Sports Technology Co., Ltd. is a leading automotive sports operator in China, focusing on sports event management, venue operation, marketing services, and digital sports business [2] - In the first half of 2025, the company achieved a revenue of 272 million CNY, representing a year-on-year growth of 21.94% [3] - The net profit attributable to the parent company was 15.32 million CNY, with a year-on-year increase of 11.97% [3] - The core business of event revenue accounted for approximately 70%, while venue operation revenue made up about 25% [3] Group 2: Business Growth and Strategies - The second quarter saw a revenue of 163 million CNY, with a year-on-year growth of 38.53% [3] - The company is enhancing its event offerings by integrating with local cultural tourism and increasing participation from star athletes, leading to growth in ticket sales and registration fees [3] - The company plans to operate around 20 golf events in 2025, having already conducted 7 events in the first half of the year [3] Group 3: Future Projects and Investments - The Hainan International Circuit project has seen an investment of 184 million CNY, with expectations to contribute to revenue by 2027 [3] - The company is actively pursuing refinancing options, currently under review by the exchange [3] - The company holds a 49.1916% stake in the "Yuedong Circle" app, focusing on AI integration in sports and health sectors [3] Group 4: Market Opportunities and Celebrity Engagement - The participation of celebrities in racing events has positively impacted ticket sales and marketing, enhancing the visibility of motorsports in China [3] - The company aims to leverage market opportunities by increasing event value and attracting star athletes to boost commercial impact [3]

Core Viewpoint - Lisheng Sports reported a strong performance in the first half of 2025, with significant revenue growth and strategic developments in its core business areas [1][2] Group 1: Financial Performance - The company achieved an operating revenue of 272 million yuan, representing a year-on-year increase of 21.94% [1] - The net profit attributable to shareholders was 15.32 million yuan, reflecting a growth of 11.97% compared to the previous year [1] - The core business of sports event management generated 192 million yuan in revenue, up 30.20% year-on-year, accounting for 70.62% of total revenue [1] Group 2: Business Development - The company organized 55 events in the first half of the year, an increase of 10 events from the same period last year, indicating steady growth in its main business [1] - Revenue from sports venue operations reached 67.17 million yuan, a year-on-year increase of 22.74%, with its revenue share rising to 24.72% [1] - Lisheng Sports is expanding its business in Hainan, focusing on the Hainan International Circuit project, which aims to become a benchmark for the automotive industry and tourism economy in the region [1] Group 3: Strategic Initiatives - The company is exploring external development in the sports industry through investments, holding a 5.047% stake in Whale Robot, a leading educational robot brand [2] - Lisheng Sports is committed to leveraging policy support to seize industry opportunities, focusing on event IP and building a comprehensive service platform for sports consumption [2]

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]