LSR(002858) 北京韬联科技·2024-10-12 11:30Investment Rating - The report indicates a negative outlook for the company, highlighting continuous losses and lack of performance support for new fundraising efforts [1][4][10]. Core Insights - The company has experienced four consecutive years of losses, with a significant reliance on the automotive sports sector for revenue [1][4]. - The automotive sports market in China is still in its infancy, with a market size of only 1.3 billion in 2021, indicating limited growth potential [3]. - The company has attempted to diversify its business model but has faced challenges, including poor performance from acquired entities and ongoing project delays [10][13]. Revenue Breakdown - The company's revenue sources are primarily from event operations (66.14%), track operations (24.56%), and other activities [2]. - The company reported a revenue of 1.47 billion from event operations, which remains its largest income source [2]. Financial Performance - The company’s revenue has fluctuated significantly, with a peak of 4.4 billion in 2019, followed by a sharp decline to 2 billion in 2020 due to the pandemic [6]. - The net profit margin has been negative since 2020, with a net loss of nearly 200 million in 2023 attributed to impairment losses from acquisitions [10][12]. Project Delays and Fundraising - The company has faced multiple delays in its fundraising projects, with significant portions of raised funds being allocated to operational liquidity rather than growth initiatives [13][14]. - A recent fundraising effort aims to raise 500 million, with a substantial portion earmarked for a new racetrack project in Hainan, which has a long construction timeline [19][20]. Management and Shareholder Actions - The actual controller of the company has reduced their stake by 7%, raising concerns about management confidence in the company's future [13][17]. - The company has historically provided minimal dividends, with only 17 million distributed over several years, indicating a lack of cash flow for shareholder returns [22].