LSR(SZ:002858)2022-12-06 07:26Group 1: Company Overview - Shanghai Lisheng Racing Culture Co., Ltd. is a leading operator in the automotive sports industry, focusing on event operations, racetrack management, and racing team operations [1][2]. - The company is the exclusive operator for several major racing events in China, including the China Touring Car Championship and the China Karting Championship [2][3]. - The actual controllers of the company are Xia Qing and Yu Chaoxu, who hold a combined 51.26% of the shares, ensuring absolute control [2]. Group 2: Business Model and Revenue - The company's revenue model is primarily driven by sports operations, catering to B2B needs, while the B2C segment is currently underdeveloped due to low ticket sales awareness [4]. - The company has a pyramid structure in its event operations, with top-tier events at the peak, such as the World Touring Car Championship, and grassroots events at the base [3][4]. - The company aims to expand its operations through a light asset model, focusing on management experience and industry resource integration [5]. Group 3: Market Potential and Challenges - The potential for the racing industry in China is significant, with a growing awareness of brand value and the need for high-quality events [4][5]. - There are currently no direct comparable companies in the market due to differing environments, although there are many competitors in niche segments [4]. - The company recognizes the importance of youth training in karting to develop future racing talents, indicating a focus on grassroots development [5][6]. Group 4: Future Plans and Strategies - The company plans to introduce more events and partnerships, although it will prioritize event development over mere event introduction due to thin profit margins [4][5]. - The racing industry in China is expected to evolve from a status symbol to a recreational activity, reflecting broader industry growth [7]. - The company will continue to leverage its extensive experience in racetrack management to enhance its operational capabilities and expand its market presence [5][6].