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Legend Holdings Revenue and Net Profit Attributable to Equity Holders of the Company Stood at RMB 228.57 Billion and RMB 4.69 Billion in 1H2021

HONG KONG, Sept 1, 2021 - (ACN Newswire) - Legend Holdings Corporation ("Legend Holdings" or the "Company"; stock code: 3396.HK) announced the unaudited interim results of the six months ended June 30, 2021 (the "Reporting Period") on August 31, 2021. During the Reporting Period, the Company's revenue was RMB 228.57 billion, representing a year-on-year increase of 24%, which rose for nine consecutive reporting periods. Net profit attributable to equity holders of the Company amounted to RMB 4.69 billion, which represented a year-on-year increase of 636% and hit a record.

FINANCIAL HIGHLIGHTS
For the six months ended June 30, 2021:
-- Revenue stood at RMB 228.57 billion, representing a yoy increase of 24%;
-- Net profit attributable to equity holders of the Company amounted to RMB 4.69 billion, representing a yoy increase of 636%;
-- Profit for the period reached RMB 8.72 billion, representing a yoy increase of 295%.

Mr. Li Peng, Executive Director and CEO of Legend Holdings, deemed that, "During the first half of 2021, although the global epidemic has recurred and the full recovery of the international market is still waiting for time, China's clear policy guidance, strong government leadership, sufficient domestic market vitality and sustained rapid economic recovery have created good conditions and unique advantages for the development of enterprises, and the introduction of the 14th Five-Year Plan has further pointed out the direction for the development of enterprises. Through effective management and value-added services, Legend Holdings consolidated and strengthened its business operation fundamentals, steadily developed its pillar assets, and enhanced its competitive advantages. Meanwhile, the Company adjusted its business strategy, seized the opportunity of China's high-quality economic development, and actively promoted the layout of the technology sector to achieve good performance growth, and various business optimization initiatives are steadily progressing. In addition, the Company's funds continued to perform well with the listing of many portfolio companies and the orderly implementation of various fundraising, investment, management and exiting work. In the future, Legend Holdings will further improve its industrial foundation, strengthen the resilience of profit growth, seize opportunities brought by the new round of industrial transformation, and accelerate the layout of emerging industries in the field of science and technology, achieve long-term healthy development of the enterprise and contribute greater social value."

Continuously reinforced competitiveness in pillar assets, sustainable optimization and growth of asset portfolio

During the Reporting Period, the company's strategic investment overall operating performance grew steadily, the competitiveness of its pillar assets and focused businesses were further enhanced. The investment portfolio was further adjusted with the improvement of the quality of the asset portfolio, and the return of capital and resources was accelerated. In the meantime, the Company further increased investment in the field of science and technology, adheres to the development path of science and technology leading, deepening innovation-driven, and strengthening industrial synergy to promote sustainable and high-quality development of the enterprise.

Attributable to the global digital and intelligent transformation, Lenovo achieved long-term and sustainable profit growth, with revenue up 25% year-on-year to RMB 210.78 billion, and the Net profit attributable to equity holders of Legend Holdings surged by 172% to RMB 1.54 billion. The personal computer business remained No.1 globally, and the non-pc business also showed strong growth. Infrastructure Solutions Group (ISG) business accelerated profit improvement, with growth rate exceeding the market average for six consecutive quarters. Additionally, Solutions & Services Group (SSG) drives its profitability, and its service-oriented transformation strategy pays off. As the consensus "carbon neutrality" accelerates, Lenovo significantly exceeded its emission reduction target in 2019/20 fiscal year and strives to achieve zero carbon emissions by 2050. As a high-tech manufacturing enterprise, Lenovo will build green manufacturing and supply chain systems through digitization and intelligence to guide and drive the industrial chain to jointly achieve zero carbon transformation, while actively empowering all industries to achieve low-carbon development and make concerted efforts to build a community for people and nature.

Levima Advanced Materials, with more than ten years of development from greenfield, has developed into a high-tech enterprise specializing in advanced high polymer materials and special fine materials. During the Reporting Period, its net profit increased by 131% year-on-year to RMB 548 million. With the steady improvement of the company's results, Levima Advanced Materials' market value also saw a significant increase. Meanwhile, it energetically plans for investment and merges and acquisitions, acquiring Levima (Shandong) Chemicals to further improve the industrial layout and enhance the sustainable profitability and stability; investing in Jiangxi Keyuan Bio-Material to cultivate new growth points in the field of biodegradable materials. Furthermore, the company's main plant economic and technological indicators were further optimized, continue to maintain a leading position in the industry. Levima Advanced Materials continued to strengthen product development and market channel expansion. With product mix further optimized, the market shares of EVA, PP, EOD, and other segmented products continues to maintain the leading position in China. As of the end of the Reporting Period, Levima Advanced Materials had a total of 131 patents approved. The Company also fully utilizes the advantages of its R&D platform to actively promote the development of new products and processes, and has completed the R&D of 16 laboratories, 14 production technology formulations, and the industrialization of 8 new products.

Banque Internationale a Luxembourg (BIL) displayed significant growth amid the epidemic in Europe. In the first half of the year, its net profit increased by 18% year-on-year to approximately EUR 47 million, and the assets under management increased to EUR 45.5 billion with CET-1 ratio 13.18%. BIL's ratings by both Moody's and Standard & Poor's were maintained at A2/Stable/P-1 and A-/Stable/A-2 respectively. In response to the new post-epidemic environment, BIL will continue to strengthen its portfolio of retail, private, and corporate and institutional banking; it will progressively advance its business in China by further reinforcing the connection among Luxembourg, Switzerland, and Hong Kong SAR and Beijing, China; its wealth management business will continue to grow by serving its target markets and targeting its clients with precision; and the target operating model and business culture will turn BIL into a "robust and dynamic" bank.

The two main business lines of Joyvio Group are fruit and high-end animal protein. It is also active in the fields of fresh semi-finished products and agri-food technology. During the Reporting Period, Joyvio Group deepened its strategic layout and focused on the core businesses. Its revenue increased by 9% year-on-year to RMB 9,778 million, and the net profit attributable to equity holders of Legend Holdings was RMB 240 million, thus turning loss into profit. Golden Wing Mau continued to improve the layout of the whole industrial chain of fruits and achieved rapid revenue growth by reinforcing the advantages in its supply chain and the core products strategy. Joyvio's brand influence further expanded and successfully achieved product diversification. As prices in the international market continue to rebound, Joyvio Food's salmon business gradually recovered, while actively promoting the development of value-added 3R products and expanding diversified sales pipeline; the original business continued to maintain its leading position in the industry. In addition, some equities in investee enterprises were sold to further focus on the core business.

In 2020, Legend Holdings took its first strategic stake in Fullhan Microelectronics, laying out the semiconductors track, and as of June 30, 2021, Legend Holdings, as the largest shareholder, holds an aggregate of 15.91% equity in Fullhan Microelectronics through its subsidiaries. Fullhan Microelectronics is China's leading company specializing in the design and development of chips for video-based industries. Fullhan Microelectronics reported revenue of RMB 718 million, a year-on-year increase of 154.37%, and net profit attributable to shareholders of the listed company of RMB 139 million, a year-on-year increase of 215.67%, its 1H2021 results report showed. The robust results significantly drove the growth in its market cap. Semiconductors and integrated circuits are among the fields that Legend Holdings has been keeping its eyes on for a long time. The Company will engage with the Fullhan Microelectronics management team for deeper cooperation to jointly promote the long-term development of Fullhan Microelectronics.

Legend Holdings, during the Reporting Period, further strengthened its industrial operation capability and gained profit in all business sectors. Strategic Investments' net profit attributable to equity holders of the Company increased by approximately RMB 3 billion year-on-year. For the advanced manufacturing and professional service segment, its revenue was up by 46% year-on-year to RMB 3,894 million, and net profit attributable to the equity holders of Legend Holdings increased by 108% year-on-year to RMB 794 million. Eastern Air Logistics (EAL) was listed on the Shanghai Stock Exchange on June 9,-which was the first civil aviation enterprise included in the first batch of domestic pilot enterprises under the mixed-ownership reform-making it a successful case of the "two-wheel-drive business model" of the Company. During the Reporting Period, given the change of market demand, EAL increased its investment in air cargo capacity, expanded the cooperation channels for air cargo capacity and furthered building of "port to port" product system, strengthening customer development and improving service experience, enhancing business results to achieve a year-on-year growth in its results. The financial services segment recorded revenue of RMB 3,141 million and net profit attributable to the equity holders of Legend Holdings of RMB 318 million, excluding the impact of the one-off loss from share dilution of Hankou Bank, and the disposal and impairment loss of Kaola Technology, net profit attributable to the equity holders of Legend Holdings grew by 20% year-on-year. Zhengqi Holdings constantly implemented the business model of "investment-loan linkage", and focused on strategic emerging industries and the ecological chain. Lakala Payment exerted more efforts for product innovation and market development, maintained steady growth in the size of payment transactions and revenue, and the income from technological services continued to grow rapidly. JC Finance & Leasing developed steadily, and its net profit increased by 44% year-on-year. Hyundai Insurance constantly explored product and service innovation. It reported approximately RMB 334 million of accrued income from insurance premiums, an increase of 410% year-on-year. The adverse impact of the COVID-19 pandemic on innovative consumption and services has been largely offset, with the revenue for the Reporting Period rising by 103% year-on-year to RMB 533 million and net profit attributable to equity holders of Legend Holdings of RMB 67 million. In order to cooperate with national policy orientation, Better Education provides inclusive pre-school education services. Shanghai Neuromedical Center continuously promoted the development of competitive neurosurgery and other comprehensive departments and its management and services were further improved.

Fund-raising, investment, management, and exiting from projects under management of financial investments in an orderly manner, continued contribution of solid cash flow

China's economy constantly recovered, and the capital market progressed strongly in the first half of 2021. Funds under Legend Holdings demonstrated outstanding results. Multiple enterprises under management went public. Fund-raising, investment, management, and exiting from projects under management were conducted comprehensively and orderly. More than 60 projects were fully or partially exited, contributing more than RMB 2 billion of cash flow.

Legend Star managed eight funds with a size exceeding RMB 3.3 billion, investing in more than 300 domestic and overseas projects accumulatively. During the Reporting Period, Legend Star's total number of investment projects was over 20, covering different niche segments, such as cutting-edge technology, biotechnology, digital medicine, and TMT. Among the projects under management, it made follow-on investments in approximately 50 projects and exited 15 projects. As of June 30, 2021, the final closing of the 4th USD fund was completed as well as the first round closing of the biotechnology fund.

Legend Capital managed a total of 28 funds, with a size of more than RMB 60 billion. As of June 30, 2021, the total amount raised by the funds was RMB 6,335 million. During the Reporting Period, Legend Capital accumulatively completed 20 new project investments, covering startup stage and growing-stage enterprises in the TMT and innovative consumption, healthcare, corporate services and intelligent manufacturing sectors. It fully or partially exited 33 projects, bringing sound cash returning. As of June 30, in total, 90 of Legend Capital's portfolio companies went public (not including those listed on NEEQS).

Hony Capital's businesses cover PE, real estate, public offering fund management, hedge fund, and venture capital. The AUM amounted to RMB 100 billion. As of June 30, Hony Capital managed 13 funds. Besides, Hony Horizon Fund Management Co., Ltd., a public offering fund management company under Hony Capital, managed seven funds. During the Reporting Period, Hony Capital proceeded with new investment projects in various business segments and progressively made follow-on investments in existing projects. Certain portfolio companies went public, and Hony Capital also actively exited projects, thereby contributing constant and steady cash returning to Legend Holdings.

Legend Holdings and its three fund platforms have paid attention to and invested in the high-tech industry for a long time, accumulating considerable assets. More than 20 portfolio companies were included in the list of National "Little Giants with Specialties, Refined Products and Management, Unique Technologies, and Innovation" announced by the Ministry of Industry and Information Technology of the People's Republic of China (MIIT), such as Fullhan Microelectronics, Gocom Information Technology, QuantumCTek, Sansure Biotech, Hanshow Technology, MNCHIP, INST magnets, Faith Long Crystal, LEADMICRO, Zonsen Biotech, CAXA, YUNJI Technology and so on. These companies will embrace a broad development space, as they feature remarkable results, high technology, and strong market competitiveness, and suit the trend of industrial upgrading in China.

Capital operation continued to advance, multiple portfolio companies successfully listed

The strategic investment and financial investment fund platforms under Legend Holdings continued to promote capital operation during the Reporting Period. As of June 30, 2021, 12 portfolio companies including EAL got listed, and at least 11 are promoting the IPO.

Chemclin Diagnostics Corporation, a project in the biomedical field invested by Zhengqi Holdings, was listed on April 9. Gocom Information Technology entered the capital market on June 28, becoming the first stock of industrial railway signal control and intelligent scheduling in China. Meanwhile, the IPO of a number of Zhengqi Holdings' investee companies was being processed or to be submitted. In addition, Golden Wing Mau and Hankou Bank are orderly preparing IPO.

In terms of financial investment, Conmed Biosciences, invested by Legend Star, issued its IPO in Hong Kong on July 8. Ten enterprises under the management of Legend Capital went public during the Reporting Period, such as CareRay Digital Medical Technology Co., Ltd., Beijing Kawin Technology Share-Holding Co., Ltd., NexImmune, Inc., and New Horizon Health Limited and so on. Besides, Dindong Shopping, invested by Hony Capital, issued its IPO during the Reporting Period.

Mr. Ning Min, Chairman, and Executive Director of Legend Holdings, said that, "In the first half of 2021, in the face of the complicated internal and external environments, Legend Holdings grasped the new development pattern with the domestic cycle as the mainstay and the domestic and international cycles promoting each other, seized the historical opportunities given by the new era, made steady progress and breakthroughs, and achieved good results, which also laid a more solid foundation for the long-term development of the company. In the meantime, the Company has always attached great importance to corporate social responsibilities from a strategic perspective, adhered to the mission of 'serving the country through industrial development', and upheld the concept of 'people orientation'. It is our first priority to develop our business in the direction adhered by the state, and to continue to promote win-win development of China's real economy, entrepreneurship and innovation through our own industrial accumulation and unique business model to create better economic and social benefits; the Company will pay constant attention to the environment and energy and support its subsidiaries to play a leading role in green energy conservation and environmental protection; we will continue to insist on social welfare investment, including entrepreneurial help, education and poverty alleviation, promoting righteousness and responding to natural disasters, while fully studying and combining with national needs to deepen its practice and make greater contributions to the promotion of social justice, common prosperity and the high-quality development of China's economy as well the China's journey towards realizing the second centenary goals."

About Legend Holdings Corporation
Legend Holdings Corporation is a leading industrial investment and operations company in China. It builds up a unique two-wheel-drive business model of "strategic investments + financial investments" and focuses on the real economy and scientific & technological innovation areas. Through value creation and value discovery, the Company cultivates and manages an outstanding asset portfolio with growth potential, driving sustainable value growth. Strategic investments aim at holding over the long term and focus on strategic segments to cultivate and optimize the portfolio while fostering pillar businesses. Through strategic investments, the Company invests in five segments, namely IT, financial services, innovative consumption and services, agriculture and food, and advanced manufacturing and professional services. Financial investments are driven by financial returns with a proper mix of products and target portfolios, and include angel investment, venture capital and private equity investment, creating a holistic financial investment industrial chain. Based on the in-depth understanding of economies and enterprises, Legend Holdings has concluded its distinctive investment concepts and management system. Through forward-looking layout, clear investment strategies and sustained management & value-added services, Legend Holdings has cultivated a number of influential outstanding enterprises in several sectors.




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