Core Viewpoint - Lisheng Sports (002858.SZ) faces challenges as its investment in Shenzhen Yuedong Tianxia Technology Co., Ltd. has not met performance targets, leading to compensation obligations and the resignation of a key executive, Yu Xingyu, due to personal reasons [1][5]. Group 1: Company Overview - Lisheng Sports was established in 2002 and became the first A-share listed company in the racing industry in 2017 [2]. - The company operates in various sectors, including racetrack operations, the Seca Alliance, and automotive experience centers, and is involved in sports equipment manufacturing and sales, primarily focusing on the "SQ" brand of go-karts [2][4]. Group 2: Investment and Performance Issues - In December 2021, Lisheng Sports acquired a 25% stake in Yuedong Tianxia for 177 million yuan, which operates the "Yuedong Circle" sports app, focusing on fitness data services [4]. - Performance commitments were set for Yuedong Tianxia, with net profit targets of 18.5 million yuan, 28.5 million yuan, and 53 million yuan for 2022, 2023, and 2024, respectively [4]. - Yuedong Tianxia failed to meet these targets, reporting actual net profits of 15.0 million yuan, -31.1 million yuan, and -20.5 million yuan, resulting in significant losses and compensation obligations for Lisheng Sports [5]. Group 3: Executive Changes and Financial Impact - Yu Xingyu, who became the general manager of Lisheng Sports in 2021 and chairman of Yuedong Tianxia, resigned amid the company's financial struggles and the underperformance of Yuedong Tianxia [5][6]. - Lisheng Sports reported revenues of 258 million yuan, 405 million yuan, and 440 million yuan for 2022, 2023, and 2024, respectively, but incurred net losses of 76 million yuan, 196 million yuan, and 60 million yuan during the same period [5]. - Yu Xingyu reduced his holdings in Lisheng Sports by 572,800 shares, representing 0.35% of the company's total shares, before his resignation [6].