On March 31, Legend Holdings Co., Ltd. ("Legend Holdings" or the "Company"; stock code: 3396.HK) announced today the audited annual report for the year ended December 31, 2022 (the "Reporting Period") achievement. During the reporting period, Legend Holdings achieved revenue of RMB 483.663 billion, and net profit attributable to equity holders of the company was RMB 1.167 billion.
In 2022, the uncertainty of the international situation will continue to increase, including the increase in global inflation, the sharp fluctuations in the international financial market and the commodity market, etc., which will also have a greater impact on the company's performance. The industrial incubation and investment segment has successfully promoted the listing of over 60 companies in the past three years, ranking among the best in the industry. However, because these investments are measured at fair value, the performance of the segment is affected by fluctuations in the capital market; Influenced by factors such as rising costs and interest rate hikes by the Federal Reserve, goodwill and asset impairment provisions were withdrawn this year. In the face of challenges, the company has earnestly studied the layout, while stabilizing the basic market and ensuring continuous profitability, it has solidly promoted its strategy and strengthened its own competitiveness.
Mr. Li Peng, executive director and CEO of Legend Holdings, said that during the reporting period, the company's performance declined significantly, but the company insisted on achieving high-quality development as its goal, and took "industrial operation, technological innovation" as the core of its long-term development strategy , the company's basic market is stable, and several companies in the industrial operation and incubation and investment sectors have good long-term growth potential. The current main task is to further consolidate the existing business foundation and enhance industrial competitiveness. At the same time, we must actively adjust the business portfolio, optimize the business model, and increase shareholder returns. During the reporting period, the industrial operation sector overcame various unfavorable factors and continued to promote management improvement and operational improvement; the industrial incubation and investment sector focused on key areas of national concern, supported independent innovation and industrial chain improvement, and promoted the development of specialized, special and new enterprises, and smoothed the bilateral Circular economy chain. At the same time, the company continued to increase investment in scientific research and frontier layout, seized green opportunities, promoted energy conservation and carbon reduction, and made positive progress in many tasks.
Continue to increase investment in research and development Adhere to innovation and lead to strengthen the frontier layout
In the context of the current era in which China implements scientific and technological innovation to lead high-quality development, Legend Holdings seizes the opportunity of the times, constantly improves and builds an enterprise-led innovation system that integrates production, education and research, and creates a collaborative and efficient innovation pattern with specialized, specialized, and new enterprises, so as to promote the development of the enterprise. sustainable development.
In 2022, the research and development expenses within the Legend Holdings system will increase by 21% year-on-year to 15.3 billion yuan. The total investment in research and development expenses in the past three years is 37.8 billion yuan, with a compound annual growth rate of 27%. It has more than 20,000 authorized patents, ranking first among large Chinese enterprises . leading. Lenovo Group's R&D investment increased by 21% year-on-year, and it has 9 major laboratories including artificial intelligence and enterprise cloud computing. Levima's research and development investment increased by 21% year-on-year. During the reporting period, it applied for 53 patents and newly authorized 58 patents; it focused on investing in the field of high-end new materials. The product has achieved a breakthrough in localization; the 20,000-ton/year ultra-high molecular weight polyethylene project invested in construction is expected to be put into operation in mid-2023, improving the situation of over-reliance on imports of ultra-high molecular weight polyethylene. Fullhan Micro's R&D investment increased by 20% year-on-year, and R&D personnel accounted for about 85%, focusing on chip R&D and other fields.
At the same time, Legend Holdings also promotes its funds to closely follow the national industrial planning and policy guidance, and actively invest in national strategic industries such as new generation information technology, chips, new energy, new materials, and artificial intelligence. In 2022, a total of nearly 150 technology companies will be invested. A total of 95 companies were selected into the list of national-level specialized and special new enterprises.
In the future, in terms of industry selection and resource allocation, Legend Holdings will further focus on the field of scientific and technological innovation, and work hard in the selected industry for a long time. The innovation and development center established by the company will start with early technology and strengthen cooperation with top universities and international institutions. exchanges and cooperation.
Solidly consolidate the practice of the real industry to improve quality and efficiency and grow together
In 2022, Legend Holdings will solidly consolidate its business fundamentals, resist external challenges through management improvement and operational enhancement, and ensure the steady progress of various businesses.
In the industrial operation sector, Lenovo Group has continued to hold the top position in the world in the personal computer business, and is also the world's number one supercomputing manufacturer. At the same time, it has made every effort to promote the transformation of its business to intelligent services, and the non-personal computer business has accounted for more than 40% of its revenue. Among them, the infrastructure solution business grasped the accelerated transformation trend of the global digital economy and the opportunities of the new computing power revolution, and achieved rapid growth; the solution service business, as the core business of digital and intelligent transformation, continued to maintain its growth momentum.
Levima Shinco continues to consolidate its leading edge in the segmented field of new materials, seizes opportunities for green development, and actively develops new business layouts. During the reporting period, the technical upgrade and capacity expansion of EVA equipment was successfully completed, and several key projects were in progress in an orderly manner: the lithium battery electrolyte raw material project was successfully handed over within the year and will soon be put into production; the investment layout of the electronic special gas business, cut into the electronic In the field of materials; the new energy battery material project and the biodegradable material project have entered the comprehensive construction stage; the new energy and biodegradable material integration project has passed the approval and is advancing construction work in an orderly manner.
BIL has properly responded to the challenges of the European economy, and achieved good growth in various business indicators. At the same time, it continues to vigorously promote its business in China, helping Chinese companies issue overseas green bonds, and helping the development of green finance; the bank's core tier-one capital adequacy ratio reached 13.35% , the international rating continued to maintain at a relatively high level. The fruit business of Joyvio Group continues to improve the layout of the entire industry chain, consolidate the strategy of large single products, and increase the development of new e-commerce retail channels.
On the other hand, many companies in the industry incubation and investment sector have also maintained their leading positions and steady development in their respective industries.
At the same time, Legend Holdings is also committed to promoting its subsidiaries to give full play to their own advantages and empower more real economies. For example, as the only high-tech manufacturing company in the Asia-Pacific region on the list, Lenovo Group has been selected as one of Gartner's top 25 global supply chains for eight consecutive years. It has more than 850 manufacturing suppliers, driving the growth of small and medium-sized enterprises in the industry chain. In 2022, self-owned manufacturing bases in Tianjin and Shenzhen will be put into operation one after another, and the Hefei base will be selected as the global "Lighthouse Factory" by the World Economic Forum. In addition, its new IT intelligent transformation solution has been successfully applied to the transformation of nearly a thousand enterprises in various industries.
Actively promote green development, help rural revitalization, increase public welfare investment in science and technology
As an enterprise that grew up under the system of the Chinese Academy of Sciences, Legend Holdings has been actively paying attention to public welfare investment in the field of science and technology. In 2022, the company entered into a donation agreement with the National University of Science and Technology Education Foundation, and donated 60 million yuan to set up the "Legend Holdings Science and Technology Innovation Plan Fund", which is dedicated to the training and development of talents in information technology, artificial intelligence, new materials and biotechnology at the National University of Science and Technology. Basic research; Legend Capital has also set up the "Legend Scholars Program" to help build China's innovative talent highland; Lenovo Group has successively reached cooperation with Shanghai Jiaotong University and Tsinghua University and initiated donations to help colleges and universities cultivate R&D talents.
Rural revitalization is an important part of Legend Holdings' corporate social responsibility. In terms of industry, the company has cooperated with the China Women's Development Foundation since 2018 to help women from low-income rural families to start businesses with local characteristics through the "Mother's Entrepreneurship Revolving Fund Project", helping the local area to develop quality, green and efficient agriculture. Prioritize development; in terms of talents, the company has set up the Legend Holdings Rural Education Fund since 2004 to continue to cultivate rural education and help students from families with limited economic conditions realize their university dreams.
The company continues to promote the green and low-carbon development of enterprises in the system, and actively responds to the national "double carbon" strategy. Lenovo Group took the lead in China to pass the SBTi net-zero target verification. Its Wuhan base won the first zero-carbon factory certificate in the ICT industry. Tianjin Industrial Park also completed the pilot project of the "Zero-Carbon Factory" standard in the ICT industry. As a national-level "green factory", Levima has improved the self-sufficiency rate of core raw materials in the photovoltaic industry and launched a PPC project for new biodegradable materials. At the same time, a number of companies under the company also help the realization of the dual carbon goals through green finance.
In addition, the public welfare project "Lenovo Star Entrepreneurial CEO Special Training Class" established by the company in 2008 has trained more than a thousand innovative and entrepreneurial talents. Among the companies founded by the trainees, 50 companies were successfully listed, and 73 companies were selected as national specialties. new venture.
Seize the opportunity of the times and work hard to contribute to the realization of high-quality development
In 2023, Legend Holdings will continue to actively improve asset quality through substantive investment management and services, continue to consolidate its business foundation, and achieve steady growth with a long-term mentality; in the industry incubation and investment sector, technological innovation is still a key area, and it is actively responding to capital investment. While the market fluctuates, creativity will be exerted to further tap new value. At the same time, the company will further adjust its business portfolio with a positive attitude and innovative ways, return resources, and seek new opportunities for strategic layout, especially in the field of technological innovation; further optimize organizational construction, increase the introduction of talents with scientific and technological backgrounds, improve and enhance human resources structure.
Although the international situation continues to challenge, the fundamentals of China's long-term economic growth will not change, and Legend Holdings has great potential in the country's major strategic deployments. The company will closely focus on the national strategy of technological innovation leading high-quality development, implement "industrial operation, technological innovation", always put the fulfillment of corporate social responsibility at a strategic height, and promote the continuous deepening of ESG work within the system.
Mr. Ning Min, chairman and executive director of Legend Holdings, said that in 2022, in the face of huge uncertainties and challenges brought about by global changes, Legend Holdings will continue to strengthen investment in technological innovation while consolidating its corporate fundamentals, and promote "Practice", overcome difficulties with tenacity, overcome storms, and further consolidate the foundation for the long-term development of the enterprise. 2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of China. With the successful convening of the Central Economic Work Conference, the effects of various policies have gradually emerged, and the Chinese economy has once again ushered in a broad space for development. Legend Holdings will work together, Seize the opportunity, continue to give full play to the enthusiasm and creativity of all employees, adhere to innovation leadership, promote industrial upgrading, work hard, actively participate in the overall high-quality development of the country, and continue to contribute to the construction of Chinese-style modernization.