Pursued progress while ensuring stability and built up momentum, Legend Holdings realized revenue of RMB237,685 million in the first half of 2022

Legend Holdings Corporation (HKG: 3396) announced today the unaudited condensed consolidated interim results for the six months ended June 30, 2022 (the Reporting Perio”). During the Reporting Period, the Company’s revenue was RMB237,685 million and the net profit attributable to equity holders of the Company amounted to RMB2,131 million.

Mr. Li Peng, Executive Director and CEO of Legend Holdings, said that in the face of the complex international environment, in the first half of 2022, Legend Holdings pursued progress while ensuring stability, and deepened the strategic thinking of “industrial operation, technological innovation”, made steady improvement in its corporate competitiveness and operational efficiency, and further strengthened its investment and layout in the field of science and technology innovation; At the same time, we gave full play to the role of “chain leader”, practiced the concept of green development, actively fulfilled corporate social responsibility, and devoted ourselves to contribute to the high-quality development of China’s economy.

During the Reporting Period, Legend Holdings further consolidated the foundation of its industrial operations and strengthened its operational management. The revenue of the segment increased by 4% year-on-year to RMB235,775 million, and the net profit attributable to the equity holders of Legend Holdings increased by 20% year-on-year to RMB2,830 million.

  • Lenovo achieved revenue and profit growth for the ninth consecutive quarter. While maintaining its position as the world’s No.1 PC maker, Lenovo accelerated the development of new growth drivers with the revenue share of the non-PC business reaching a new high of 37% in the second quarter
  • Levima Group took the lead in achieving import substitution in the field of EVA photovoltaic materials. In the first quarter, the upgrading and transformation of EVA devices realized the expected effect, and the result in the second quarter reached a new high. In addition, the company continued to focus on the field of new materials, advancing the new projects in an orderly manner, and entered the field of electronic specialty gas;
  • The core business of Joyvio Group develops well as a whole. Joy Wing Mau continued to improve its vertically integrated fruit supply chain and achieved rapid growth in revenue. Global demand and prices for seafood products continued to rebound, and the revenue and profit of Joyvio Food have been improved;
  • With a healthy core capital adequacy ratio and strong international credit ratings, Banque Internationale a Luxembourg S.A. (“BIL”) achieved solid growth – successfully navigating the challenges faced by Europe’s economy. Meanwhile, BIL obtained QFLP status in Shenzhen, through which it will further support the introduction of foreign capital into China’s market and other initiatives.

During the Reporting Period, the industrial incubations and investments segment delivered stable and sound growth despite capital market volatility.

  • Legend Capital raised funds of RMB3.5 billion, invested in 26 new projects, and 4 portfolio companies went public;
  • Legend Star invested in nearly 20 new projects, more than 40 enterprises under management completed their next funding round, and it exited approximately 10 projects. The first round closing of the firm’s fifth USD fund and the final closing of its artificial intelligence special fund were also completed.;
  • Fullhan Microelectronics’s market share has significantly increased, and its performance has achieved growth. It continued to invest in mid- and high-end surveillance products to enhance profitability, and the expediting growth of smart home & smart automotive products has served as new driving engines;
  • Lakala maintained China’s No. 2 operator in terms of bank card transaction volume and leading operator in QR code payments. At the same time, it proactively provided technological support for other businesses;
  • The production and operation of Eastern Air Logistics have recovered steadily and achieved steady improvement in performance;
  • Zhengqi Holdings focused on the field of scientific and technological innovation, carried out industrial exploration and investment layout, and has so far helped 11 of its portfolio companies in total successfully go public;
  • JC Finance & Leasing achieved solid performance and year-on-year revenue growth amid the pandemic.

Increasing investment in scientific and technological innovation, adhering to innovation-driven development and continuously supporting the growth of Specialized and Innovative Enterprises

Legend Holdings stays true to its original aspiration of “revitalizing the country through business”. It has further increased its investment in technological innovation in line with the national strategy of achieving high-quality development driven by technological innovation and has achieved promising results.

  • Steady implementation of the “plan of doubling investments in Research and Development”

In the first half of 2022, Legend Holdings’ Family Group’s total R&D investment (excluding the capitalized R&D spending) reached RMB7.212 billion, and currently owns over 20,000 granted patents, ranking top among Chinese enterprises in various patent awards. Lenovo remains committed to its plan of doubling investments in R&D; it increased R&D spending by 23% year-on-year and grew R&D headcount by 29% year-on-year. Levima Advanced Materials adhered to its innovation-driven strategy. During the Reporting Period, it completed the laboratory R&D development for 9 new products and processes, the production technology formulas for 15 new products, and the industrialization of 5 new products.

  • Continuously “long-sought” in the field of science and technology

In the first half of 2022, Legend Holdings’ family group invested in nearly 50 new technology companies, covering multiple fields such as cutting-edge technologies, hard & core technologies, healthcare and medicine, and has contributed to the development of specialized and innovative enterprises in China through its empowerment. During the year as of August 15, 2022, 12 of its portfolio companies have successfully completed IPOs. Close to 50 of Legend Holdings’ family group’s portfolio companies made the newly announced list of the fourth official list of state-level specialized and innovative enterprises, such as Noitom, Hua Kong Tsingjiao, Spacety, Union Semiconductor, EasyDiagnosis Biomedicine, NuVolta Technologies, etc. Up to now, Legend Holdings’ family group has nearly 100 specialized and innovative companies in its portfolio.

Adhering to green growth, playing the full strength as a chain leader, and actively fulfilling corporate social responsibility

Legend Holdings is committed to promoting green development philosophy through the efforts of its portfolio companies to seize the green development opportunities, and jointly build an ecological civilization. Lenovo has set a goal of net-zero carbon emissions by 2050, transforming into “net-zero carbon emission plants” on the basis of its state-level green plants. The Company continues to create and provide smart solutions that facilitate the green transformation, empowering over 300 top industrial enterprises in China. Levima Advanced Materials focused on the development of new energy materials and biodegradable materials on top of its existing EVA photovoltaic film business; BIL helped Chinese companies issue overseas green bonds to facilitate the development of green finance; at the same time, Legend Capital, Legend Star, Zhengqi Holdings, etc. have further expanded investments in related fields to promote innovation and technological progress.

In terms of industrial chain, Legend Holdings promoted its subsidiaries to give full play to their advantages in operations and supply chains and assisted the coordinated development across the industrial chains. Lenovo was named a Gartner Global 25 Supply Chain for the eighth consecutive time. 90% of its manufacturing was from China, with 2,000 level-1 suppliers, directly providing more than 350,000 jobs. Levima Advanced Materials continued to make efforts in the field of new materials, expanding vertically to the upstream of the industrial chain while horizontally expanding to new segments, driving the mutual development with SMEs.

Corporate social responsibility is an important part of Legend Holdings’ overall strategy. The Company actively responds to the national call to steadily promote the implementation of the national employment stabilization policy within the family group, and carefully formulated and closely tracked various recruitment plans. While extensively attracting social talents, it focused on the recruitment of fresh graduates from colleges and universities, and actively expanded the scale of recruitment. In terms of public welfare undertakings, Legend Holdings has long focused on key areas such as fostering start-ups, contributing to rural revitalization, promoting social integrity and responding to disasters for years and insists on investing and carrying out relevant work effectively.

Mr. Ning Min, Chairman and Executive Director of Legend Holdings, said that, under the strong leadership of the Communist Party of China’s Central Committee, China coped well with the changes in the international environment, and achieved economic and social development while effectively coordinating pandemic prevention and control, adhering to the guiding ideology of “people-centered”, and achieved a series of results in various tasks, which also created a good environment for the development of enterprises. In the first half of 2022, the Company continued to improve its position, strengthen its capabilities, seize the important opportunities arising from the transformation and upgrading of Chinese enterprises, focus on the real economy, increase efforts in the field of scientific and technological innovation, and earnestly fulfill its corporate social responsibilities. In the future, we will continue to aim at accomplishing the great goal of building a world-class enterprise, and contribute to the journey of achieving high-quality development and common prosperity!

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