Group 1 - The Hainan International Circuit project by Lisheng Sports has entered a substantial construction phase, featuring an international standard secondary track and a car brand experience center, supported by the Hainan provincial government [1] - The project aims to enhance the automotive industry in Hainan and attract international top-tier events, leveraging its advantageous geographical location and a large customer base [1] - The recent implementation of zero-tariff policies in Hainan is expected to reduce operational costs for the circuit and attract participants from Southeast Asia and Australia, boosting the local automotive modification market [1] Group 2 - Lisheng Sports has received approval from the Shenzhen Stock Exchange for a specific stock issuance aimed at raising up to 330 million yuan, which will be fully allocated to the Hainan New Energy Vehicle Experience Center International Circuit project [2] - The company is focusing on market trends and policy opportunities, aiming to strengthen its main business while actively expanding its boundaries [2] - Lisheng Sports plans to further leverage its strategic value in Hainan and enhance its development strategy of "IP-led, digitally driven" to achieve significant growth in scale and industry influence [2]

Core Viewpoint - The company is strategically expanding its business in Hainan by participating in the construction of the Hainan International Circuit, which is part of the Hainan New Energy Vehicle Experience Center project, aiming to leverage the unique advantages of the Hainan Free Trade Port [1]. Group 1: Company Developments - The company reported a closing price of 15.95 yuan on December 22, 2025, with a 2.7% increase and a turnover rate of 10.16%, amounting to a trading volume of 149,400 lots and a transaction value of 237 million yuan [1]. - The company has established a 60% owned subsidiary, Hainan Smart New Energy Vehicle Development Center Co., Ltd., responsible for the construction and operation of the Hainan International Circuit [1]. - A wholly-owned subsidiary, Hainan Lisheng Investment Co., Ltd., was established in early 2024 to utilize the unique policies and industrial advantages of the Hainan Free Trade Port for investment cooperation [1]. Group 2: Market Activity - On December 22, the net inflow of main funds was 29.34 million yuan, indicating a positive engagement from major investors [2]. - Retail investors experienced a net outflow of 17.37 million yuan, while speculative funds saw a net outflow of 11.97 million yuan [2].

Core Viewpoint - Lisheng Sports announced its strategic investment in the Hainan International Circuit, expecting it to generate revenue by 2027, leveraging the unique advantages of the Hainan Free Trade Port [2] Group 1: Investment and Financials - The company has invested 184 million yuan of its own funds to initiate the project construction, with plans to continue financing through a refinancing process currently under review by the exchange [2] - The expected operational commencement of the Hainan Circuit is projected to fill the winter event gap and serve the Asia-Pacific region [2] Group 2: Strategic Importance - The Hainan International Circuit is positioned as a new landmark for international events, benefiting from Hainan's climate, tariff policies, and global accessibility [2] - The company emphasizes the strategic significance of this project within its broader business layout in the Hainan Free Trade Port [2]