Core Viewpoint - Lisheng Sports has received approval from the Shenzhen Stock Exchange for its application to issue shares to specific investors, pending final approval from the China Securities Regulatory Commission (CSRC) [1][4]. Summary by Sections Issuance Details - The company plans to raise a total of no more than 33 million yuan (approximately 4.6 million USD) through this issuance, which will be used for the Hainan New Energy Vehicle Experience Center International Racing Track project [1][3]. - The total investment for the racing track project is 635.8 million yuan (approximately 89.5 million USD) [3]. Share Issuance Structure - The shares will be domestic listed ordinary shares (A-shares) with a par value of 1.00 yuan per share [3]. - The issuance will target no more than 35 specific investors, including qualified institutional investors such as securities investment fund management companies, securities companies, trust companies, financial companies, insurance institutions, and qualified foreign institutional investors [4][5]. Pricing and Limitations - The issuance price will be no less than 80% of the average trading price of the company's shares over the 20 trading days prior to the pricing date [4]. - The number of shares issued will not exceed 30% of the company's total share capital before the issuance, capped at 48.0142 million shares [4]. Control and Governance - To maintain control stability, the company will set limits on the number of shares that a single investor can subscribe to and will require commitments from investors not to seek control of the company [5]. - After the issuance, the controlling shareholders' stake will decrease but will not lead to a change in control of the company [5]. Underwriting - The lead underwriter for this issuance is Guosheng Securities Co., Ltd., with representatives Wang Chenjie and Jiang Xiang [6].

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]