Legend Holdings achieves revenue of 237.685 billion yuan in the first half of 2022

[August 31, 2022] Legend Holdings Co., Ltd. (“Legend Holdings” or the “Company”; stock code: 3396.HK) announced today that the six months ended June 30, 2022 (the “Reporting Period”) Unaudited Condensed Consolidated Interim Results. During the reporting period, Legend Holdings achieved revenue of RMB237,685 million, and net profit attributable to equity holders of the Company was RMB2,131 million.

Mr. Li Peng, Executive Director and Chief Executive Officer of Legend Holdings, said that in the face of the complex international environment, in the first half of 2022, Legend Holdings will seek progress while maintaining stability, and deepen the strategic thinking of “industrial operation, technological innovation”, corporate competitiveness and operating efficiency. Steady improvement, the investment and layout in the field of science and technology innovation have also been further strengthened; at the same time, it will give full play to the role of “chain leader”, practice the concept of green development, actively fulfill corporate social responsibility, and strive to contribute value to the high-quality development of China’s economy.

During the reporting period, Legend Holdings further consolidated its industrial operation foundation and strengthened operation management. Segment revenue increased by 4% year-on-year to RMB235.775 billion, and net profit attributable to shareholders of Legend Holdings increased by 20% year-on-year to RMB2.830 billion.

• Lenovo Group achieved revenue and profitability improvements for nine consecutive quarters. On the basis of maintaining the world’s No. 1 personal computer business, it accelerated the cultivation of new growth points. In the second quarter, the proportion of non-personal computer business revenue reached a new high of 37%;

• Lianhong Group took the lead in realizing import substitution in the field of EVA photovoltaic materials. In the first quarter, the upgrade of EVA equipment achieved the expected effect, and the performance in the second quarter reached a new high. In addition, the company continued to focus on the field of new materials, and the new projects were advanced in an orderly manner, and entered the field of electronic special gas ;

• The core businesses of Joyvio Group are developing well on the whole. Golden Wing Mau continues to improve the layout of the whole fruit industry chain, and its revenue grows rapidly. The global seafood terminal market demand and prices have further recovered, and Joyvio Foods’ revenue and profit have both increased;

• In the face of many challenges in the European economy, Luxembourg International Bank responded in an orderly manner and achieved steady growth in performance. The core capital adequacy ratio and international rating remained stable. At the same time, the bank obtained the Shenzhen QFLP qualification, which will further support measures such as “introduction of foreign capital”.

During the reporting period, although the industry incubation and investment sector was affected by the fluctuation of the capital market, it maintained an orderly and healthy development.

• Legend Capital raised a fund of RMB 3.5 billion, invested in 26 new projects, and listed 4 companies under management;

• Legend Star newly invested in nearly 20 projects, more than 40 companies under management achieved the next round of financing, withdrew from nearly 10 projects, completed the first delivery of the five-phase US dollar fund, and completed the final delivery of the artificial intelligence special fund;

• Fullhan’s market share has increased significantly, and its performance has grown. Professional security has continued to deploy mid-to-high-end products to improve profitability. Smart home + smart car dealerships have accelerated growth, creating a second growth curve;

• Lakala maintains the second domestic bank card transaction amount and the industry-leading position in the scanning code transaction amount, and actively promotes external technology empowerment;

• The production and operation of China Eastern Logistics has stabilized and rebounded, and its performance has been steadily improved;

• Zhengqi Holdings focuses on the field of scientific and technological innovation, conducts industrial exploration and investment layout, and has helped 11 invested companies to go public so far;

• Junchuang Leasing overcame the impact of the epidemic and achieved steady development with a year-on-year increase in revenue.

Strengthen investment in science and technology innovation, adhere to innovation-driven development, and continue to promote the growth of “specialized, refined, and new” enterprises

Legend Holdings has always adhered to the original intention of “serving the country by industry”. Against the background of the current era of in-depth implementation of technological innovation to lead high-quality development, Legend Holdings has further increased its investment in the field of scientific and technological innovation and achieved certain results.

In the first half of the year, Legend Holdings’ R&D expenses (excluding capitalized R&D expenditures) amounted to RMB 7.212 billion, with a total of over 20,000 authorized patents, ranking among the top Chinese enterprises in various patent selections. Lenovo Group has steadily implemented its plan to double its R&D investment, with a year-on-year increase of 23% in the first half of the year and a 29% year-on-year increase in the number of R&D personnel. Lianhong Xinke adheres to the innovation drive, and completed the research and development of 9 new products/new process laboratories, 15 new product production process formulas, and 5 new product industrializations during the reporting period.

In the first half of the year, Legend Holdings invested in nearly 50 new technology companies, covering cutting-edge technology, hard technology, medicine and medical care, and many other fields. At the same time, through various methods, it empowered the growth of Chinese specialized, specialized, and new companies. The year ended in August 2022. On the 15th, a total of 12 invested companies were promoted to go public. In the latest list of the fourth batch of national-level specialized, specialized, and new enterprises, nearly 50 invested enterprises in the Legend Holdings system were selected, such as Nuoyiteng, Huakong Qingjiao, Tianyi Research Institute, Huicheng Co., Ltd., Mingde Biotechnology, Voda Semiconductor, etc. Up to now, there are nearly 100 national-level specialized and special new enterprises among the invested enterprises.

Adhere to green development and give full play to the “chain-driven” effect and actively fulfill corporate social responsibilities

The company firmly promotes the concept of green development, and promotes its subsidiaries to seize green development opportunities and jointly create an ecological civilization. Lenovo Group promises to achieve net zero carbon emissions no later than 2050, promote the transformation of “zero carbon factories” on the basis of national-level green factories, and continue to create intelligent solutions for green transformation, actively export to the outside world, and empower more than 300 domestic industries Leading enterprise; Lianhong Xinke, on the basis of consolidating the existing advantages of photovoltaic film materials, develops new energy materials and biodegradable materials; Luxembourg International Bank helps Chinese enterprises issue overseas green bonds and promote the development of green finance; at the same time, Legend Capital, Legend Star, Zhengqi Holdings, etc. have further increased investment in related fields to promote innovation and technological progress.

In terms of the industrial chain, Legend Holdings continued to promote its subsidiaries to leverage their advantages in operations and supply chain, and assist the coordinated development of upstream and downstream enterprises in the industrial chain. Lenovo Group has been included in the “Top 25 Global Supply Chain List” published by Gartner for eight consecutive times. 90% of its manufacturing is from China, and only 2,000 first-tier suppliers have directly contributed to the employment of more than 350,000 people. Lianhong Xinke continued to exert its efforts in the field of new materials, continuously extended vertically to the upstream of the industrial chain, and expanded horizontally into subdivisions, driving more small and medium-sized enterprises to develop together.

Corporate social responsibility is an important part of Legend Holdings’ overall strategy. The company actively responds to the call of the state, solidly promotes the implementation of the national employment guarantee policy within the system, earnestly formulates and closely tracks various recruitment plans, and while absorbing social talents, it focuses on the recruitment of fresh graduates from colleges and universities, and actively expands the scale of recruitment. In terms of social welfare undertakings, Legend Holdings has focused on key areas such as entrepreneurship assistance, rural revitalization, promotion of righteousness, and disaster response for many years.

Mr. Ning Min, Chairman and Executive Director of Legend Holdings, said that under the strong leadership of the CPC Central Committee, China has properly responded to changes in the international environment, effectively coordinated epidemic prevention and control and economic and social development, and adhered to the “people-centered” guiding ideology. A series of achievements have been achieved, and a good environment has also been created for the development of the enterprise. In the first half of the year, the company continuously improved its position, strengthened its own capabilities, seized the important opportunities for the transformation and upgrading of Chinese enterprises, insisted on focusing on the real economy, continued to increase efforts in the field of scientific and technological innovation, and earnestly fulfilled its corporate social responsibility. In the future, we will continue to aim at building a world-class enterprise, and continue to contribute to the journey of high-quality development and common prosperity!