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Legend Holdings Released 2023 Interim Results, Stepping up Investment in Technological Innovation to Accumulate High-quality Development Momentum

HONG KONG, Aug 31, 2023 - (JCN Newswire) - On August 31, 2023, Legend Holdings Corporation (3396.HK) announced the unaudited condensed consolidated interim results for the six months ended June 30, 2023 (the "Reporting Period"). In the first half of 2023, the Chinese economy recovered well in general, and high-quality development was solidly promoted. However, at the same time, the international environment remained complex and ever-changing, posing challenges to enterprise operations and development. Legend Holdings has adhered to the original aspiration of "revitalizing China through business", deepened the implementation of the long-term development strategy core of "industrial operation, technological innovation", and demonstrated the resilience and perseverance helping itself ride out the current economic cycle. Meanwhile, the Company actively fulfilled corporate social responsibilities to serve the overall development of the country. During the Reporting Period, the Company's revenue was RMB201,286 million and the net profit attributable to equity holders of the Company amounted to RMB668 million.

Continuously increasing investment in scientific and technological innovation, and consolidating the cornerstone of long-term development
In the first half of 2023, Legend Holdings continued to increase investment in scientific and technological innovation, providing support for the Company's high-quality development. During the Reporting Period, the Company invested RMB7,087 million in research and development. Lenovo, a subsidiary of Legend Holdings, has accumulated over 38,000 granted and pending global patents and will invest an additional RMB7 billion in the next three years to expedite the deployment of artificial intelligence technologies and applications. Levima Advanced Materials continued to improve its independent R&D and innovation capabilities and has applied for 305 patents, 231 of which have been granted. Fullhan Microelectronics has continuously consolidated its technological foundation and obtained 272 intellectual property rights of various types. In addition, funds controlled by Legend Holdings continued to actively tap into national strategic industries such as next-generation information technology, chips, artificial intelligence, new energy and advanced materials, and invested in approximately 50 technology enterprises in the first half of the year. Especially in the field of artificial intelligence, Legend Holdings has secured certain advantages as a first mover and an ecosystem builder. It has invested in over 200 AI-related companies, covering various aspects including underlying hardware, data, computing power, algorithms, and applications, such as Zhipu AI, Cambricon Technologies, and Data Grand, etc.

Actively harnessing the role of supply chain leader, and steadily improving the competitiveness of industrial chains
Based on its extensive experience in promoting the industrialization of technological achievements, Legend Holdings fully leveraged its role as a supply chain leader, actively assisted the growth of small and medium-sized enterprises, and strived to enhance the modernization and competitiveness of the industrial and supply chains. Lenovo has been listed in Gartner's Global Supply Chain Top 25 ranking for nine consecutive years, being the highest-ranked Chinese company, and it has consistently held the top position in the Asia-Pacific region on this ranking. Lenovo's industrial chain has cultivated 45 national specialized and innovative enterprises, 15 niche-sector leaders, and 7 product leaders. At the same time, funds under the Legend Holdings Family Group continued to re-double their efforts to incubate and grow specialized and innovative enterprises and niche-sector leaders. Taking Legend Capital as an example, it invested in 15 niche-sector leaders in the manufacturing industry and 15 state-level enterprise technology centers. The entire Legend Holdings Family Group has invested in a total of 120 national specialized and innovative enterprises.

Embracing green development, and fulfilling corporate social responsibilities
Legend Holdings has been actively practicing corporate social responsibilities in key areas such as rural revitalization, technological innovation, promoting social justice, etc. At the same time, the Company continued to promote green practices within the Legend Holdings Family Group and seize green opportunities. Lenovo focuses on "zero-carbon" manufacturing, setting the goal of net zero emissions across its entire value chain by 2050, and has offered peers a science-based and scalable intelligent solution for "zero-carbon" manufacturing. As a state-level "Green Factory", Levima Advanced Materials took the lead in achieving domestic substitution of EVA photovoltaic adhesive film materials. Zhengqi Holdings established Zhengqi Guangneng Technology Co., Ltd. to expand the field of green development. Meanwhile, funds under Legend Holdings continued to focus on green field and invested in over 50 enterprises in terms of de-carbonization technology and green investment.

In the future, Legend Holdings will continue to adhere to high-quality development led by scientific and technological innovation, actively optimize resource layout, seek new opportunities in the strategic direction encouraged and advocated by the country, promote the deepening implementation of corporate social responsibilities on an ongoing basis, and contribute to the Chinese path to modernization with a long-term mentality.



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