Home Enterprise holdings Legend Holdings (3396.HK) announced its 2021 annual results

Legend Holdings (3396.HK) announced its 2021 annual results

Achieved new revenue and profit record
Focused on industrial exploitation and scientific and technological innovation

HONG KONG, April 1, 2022 – (ACN Newswire) – According to the South China Morning Post, the global market has had another turbulent year. The impact of COVID-19 has still not gone away, the global supply chain chaos has shown that the world still needs time to recover; the consequences of geopolitical factors have greatly disrupted global financial markets, which has further raised concerns among investors. In such an environment, a comprehensive company with a solid business foundation and years of forward-looking layout tends to have a higher risk tolerance, such as Legend Holdings. The company announced its 2021 annual results yesterday, achieving steady growth.

Mr. Li Peng, CEO of Legend Holdings, said, “The company has strengthened its presence in its preferred business areas, proactively responded to the impact of the pandemic and various external environmental changes, business strategies and increased its investments in technology and innovation. Legend Holdings achieved revenue of RMB 489.872 billion, an increase of 17% year-on-year, and net profit attributable to shareholders of the Company of RMB 5.755 billion, an increase of 49% year over year. revenues and profits have reached new heights.”

Continuous growth momentum in the industrial operations segment, commercial foundation further consolidated
The good performance of Legend Holdings is mainly due to the continuous growth momentum of the industrial operations segment, the pillar companies of this segment consolidate the existing advantages and deepen innovation in all aspects, namely Lenovo, Levima Advanced Materials, Joyvio Group and Banque Internationale a Luxembourg SA (BIL).

In 2021, Lenovo seized the opportunities of global digitalization and intelligent transformation, the three core businesses achieved record results and further improvement in profitability, resulting in net profit attributable to shareholders of Legend Holdings amounting to RMB 4.019 billion, a 92% year-on-year increase. Lenovo has always attached importance to investing in science and technology, and in 2021 set a goal “to invest an annual average of RMB 20 billion in R&D over the next three years. and to double its R&D staff to no less than 24,000”. At present, the relevant work is progressing steadily. In the fourth quarter of 2021, it invested RMB 3.5 billion, representing a 38% year-on-year increase.

Levima Advanced Materials adhered to its innovation-driven strategy with a 60% increase in R&D investment year-on-year and planned to invest RMB 10 billion in the areas of new energy materials and materials biodegradable. Some projects have already started. Benefiting from factors such as strong demand for new energy products, improved operational efficiency and high-end differentiated product strategies, it achieved net profit attributable to shareholders of Legend Holdings of RMB 565 million, an increase of 70% year over year. .

Joyvio Group continued to focus on its two core business areas of premium fruit and premium animal protein and turned losses into profits through a series of initiatives during the period considered. BIL has continuously improved its business models and in 2021, all of its key business indicators recorded year-on-year growth, a CET-1 ratio up 14.15%, net profit attributable to shareholders of Legend Holdings at RMB 873 million, a 35% year-on-year increase (excluding foreign exchange differences).

Through the performance of the above companies, we can see that in 2021, Legend Holdings not only consolidated the basics of industrial operations, but also increased investment in technological innovation in accordance with national strategies, and the future development of industry. ‘business should be worth waiting for. Legend Holdings has a tradition of deep involvement in the field of technology and innovation, and this tradition is also fully demonstrated in its incubations and industrial investments segment.

Growing industrial incubations and investments, increased support for tech start-ups
Legend Holdings has a long history of deploying technology start-ups, and in 2021, Legend Holdings continued to increase its efforts in investment and financial support for science and technology innovation.

With the government attaching great importance to the development of the semiconductor industry, Legend Holdings previously made a strategic investment in high-tech company Fullhan Microelectronics, which specializes in chip design and development, and further increased its shares. of attendance. to 15.90% in 2021. Fullhan Microelectronics has maintained a high proportion of R&D investment and encouraged the improvement and upgrading of product lines. It developed a full range of products from simulation to digitization and front-end to back-end, with R&D spending up more than 100% year-on-year. In 2021, Legend Holdings and Fullhan Microelectronics jointly founded the Hanlian Semiconductor Industry Fund for greater cooperation in the semiconductor industry.

Through Legend Capital and Legend Star, Legend Holdings has invested in more than 100 innovative new technology projects, spanning advanced technology, biomedicine, advanced manufacturing, TMT and other areas, with 21 of its beneficiary companies entering domestic and foreign capital markets. As of the end of 2021, 39 companies invested by Legend Holdings have been selected for the Specialized, Fined, Particular and Innovative (SFPI) list nationwide. In addition, Legend Holdings and its subsidiary businesses have also supported the growth of nearly 200 Chinese SFPI companies through supply chain sourcing, financial support and professional services.

Legend Holdings’ long-term investment in companies with high technology potential shows insight into the future. These stocks would provide abundant financial returns and long-term development and further support or establish a range of enterprises to occupy leading positions while having excellent profitability in multiple industries and fields, while further contributing to the development of industries. innovative technologies from China. to the next step.

Overall strengthening of ESG-related initiatives
In recent years, global warming has led to various environmental problems such as melting glaciers and rising sea levels, which has also caused concern in various countries. With the introduction last year of China’s goal of “peak carbon neutrality” and the unanimous decision to “accelerate climate action” at the 26th United Nations Conference on Climate Change, the Environment, social and governance (ESG) has been elevated to a new level, and the capital market pays more attention to corporate ESG initiatives, which can also highlight corporate values.

In 2021, Legend Holdings strengthened and implemented its ESG-related initiatives into its ongoing day-to-day operations. Lenovo has reduced its carbon emissions by 92% over the past decade, selected as the United Nations Advanced Business Practices Case for Low Carbon Practices. In 2021, it has also set a goal of achieving net zero carbon emissions by 2050 and actively exports products, services and solutions to help various industries achieve carbon neutrality. Levima Advanced Materials has also been protecting the environment in its business, making vigorous efforts to develop new energy and biodegradable materials, and effectively achieving the goals of reducing energy consumption and greenhouse gas emissions through to different initiatives.

When it comes to ESG investing that has emerged in recent years, Legend Holdings’ subsidiaries are also at the forefront. BIL has officially become a bank recognized by the United Nations Global Compact and the United Nations Principles for Responsible Banking (UN PRB) and has helped Chinese-funded companies to successfully issue green bonds. Legend Capital, as the first leading VC/PE institution in China to join the United Nations Organization for Responsible Investment, has invested in more than 20 companies based on “dual carbon” technology.

Looking to the future, Mr. Ning Min, Chairman of Legend Holdings, said, “We have never forgotten our mission of promoting technological innovation, supporting industrial development and our social responsibility as as an international company rooted in China. Facing the future, we will always keep an open mind, a pragmatic style, uphold the spirit of enterprise, step forward with courage, and make more positive contributions to the new era with solid achievements on the new journey towards the future. ‘to come up.”

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