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Legend Holdings' net profit increases 4.3% to RMB4,859M in 2016

Legend Holdings' net profit increases 4.3% to RMB4,859M in 2016
Our strategic investments experienced substantial growth, with over RMB3 billion increase in the net profit attributable to equity holders of the Company. Subject to market fluctuations, the net profit attributable to equity holders of the Company from financial investments sector amounted to RMB2,901 million.

 

PR-Inside.com: 2017-03-29 18:33:19
HONG KONG, 29 March 2017 - (ACN Newswire) - Legend Holdings Corporation (HK:3396) is pleased to announce the audited annual results of the Company and its subsidiaries for the year ended December 31, 2016.

- Combined revenue was RMB307 billion, of which revenue from continuing operations was RMB294.7 billion.

- Net profit attributable to equity holders of the Company was RMB4,859 million, an increase of 4.3% compared with last corresponding year; of which, net profit from continuing operations attributable to equity holders of the Company was RMB4,852 million, an increase of 10.5% compared with last corresponding year.

- Basic earnings per share contributed by continuing operations was RMB2.06, an increase of 2% compared with last corresponding year.


- The Board has recommended the payment of a final dividend of RMB0.242 per ordinary share (before tax), an increase of 10% compared with last corresponding year.

During the Reporting Year, the net profit attributable to equity holders of the Company amounted to RMB4,859 million, up 4.3% compared with last corresponding year, with earnings per share at RMB2.06. The net profit in continuing operations attributable to equity holders of the Company amounted to RMB4,852 million, up10.5% compared with last corresponding year. Our strategic investments substantial growth, with over RMB3 billion increase in the net profit attributable to equity holders of the Company. Subject to market fluctuations, the net profit attributable to equity holders of the Company from financial investments sector amounted to RMB2,901 million.

Our strategic investment sectors recorded outstanding figures. The IT sector turned around in profit during the Reporting Year; the financial services sector recorded robust revenue and profit growth; the size of the innovative consumption and services business continued to grow; the agriculture and food business was more comprehensive; and the new materials sector entered into a profitable growth track. Meanwhile, the company made breakthroughs in overseas investment in the financial services sector and agriculture and food sector. The funds of the Company's financial investment business were further expanded in scale, provided continuous cash inflow to Legend Holdings.

"In view of 2016, the Company has pushed forward the execution of its strategic targets in 2016. On the one hand, we have made adjustments to our investment portfolio in accordance with our strategies, and promoted post-investment management and value-added services; on the other hand, we have deepened industry research and optimized tactics and project sourcing to capture new opportunities. With careful insight and comprehensive consideration, the Company continues to unlock its value. Meanwhile, we awarded medium and long-term incentives to core employees of the Company. The implementation of these incentives will further stimulate the staff's sense of ownership and long-term commitment to the Company," says Mr. ZHU Linan, President of Legend Holdings Corporation.

"In the future, we are fully aware that uncertainties in the external environment still exist and will continue for a long time. We also need to evaluate the invested companies from different perspectives to optimize and elevate our investment portfolio through continuously dynamic adjustments. We will insist on the unique 'two-wheel-drive' business model of Legend Holdings 'strategic investments + financial investments', strengthen the synergistic interactions between 'two wheels' at both the mechanism and execution levels, further driving the value of growth.

"We will endeavor to reach this target in three major strategic sectors, including financial services, innovative consumption and services, and agriculture and food. Taking both local and overseas in view, we will engage in building new pillar businesses. In addition, we will continuously realize the value growth and more explicit value by helping invested companies to carry out capital operations. Such moves can contribute to forming a clearer understanding of the portfolio value of Legend Holdings by capital markets. This is also one of the responsibilities that Legend Holdings as a listed company to shareholders."

In 2016, an array of changes occurred in international politics, the macro-economy and financial markets. However, based on more than 30 years of amplifying its investments in China and industrial accumulation, Legend Holdings has been able to continue capturing growth opportunities during this year of uncertainty. The Company's strategic investments have always been centered on consumption upgrades, while the state actively encourages the continuous establishment of industrial areas. By focusing on laying the foundations of enterprise value, through a combination of optimization, post-management and capital operation, the Company has achieved remarkable progress, boosting the value of its sustained release.

As a pioneer in China's alternative investment sector, Legend Holdings' financial investment businesses continues to make good use of flexible adjustment and sharp judgement, despite facing the challenges of market fluctuations. Three of the Company's financial investment platforms covering angel investment, venture capital and private equity investment are all top funds and contribute significantly to its profits and cash flow. During the Reporting Year, the net profit attributable to equity holders of the Company from financial investment amounted to RMB2,901 million. In year 2016, the cash flow provided by Legend Capital and Hony Capital totaled about RMB1.4 billion, new fund-raising conducted smoothly, with further expansion of fund scale and improvement of market appeal. As of the end of 2016, projects under management of Legend Capital were more than RMB30 billion, the internal rate of return of the exited projects ranged between 35% to 40%, projects under management of Hony Capital were RMB68 billion.

Looking forward, Mr. Liu Chuanzhi, Chairman of Legend Holdings states that, "Over the year, the management of Legend Holdings settled on a clear strategy, and the execution of that strategy took a firm and solid step forward, providing a powerful driving force. While the business continues to evolve, the Board is also actively advancing the next strategy in an iterative way. Although changes in the international political environment are bringing a lot of uncertainty to domestic policies, affecting macroeconomics and the creation of systems and business models, the private economy can always seize chances for development. Through years of accumulation and deep research, Legend Holdings has created a unique business model of 'strategic investments + financial investments' with synergy between these 'two-wheel-drive' businesses. Relying on this business model, we will keep developing leading companies through the capital market and create value for our shareholders."

Continued, www.acnnewswire.com/press-release/japanese/35679/legend-holdings ..

About Legend Holdings Corporation

Legend Holdings is a leading large investment group in China. The Company has built an innovative business model of "strategic investments + financial investments" with synergy between these "two-wheel-drive" businesses. Through strategic investments, the Company invests in five segments: IT, financial services, innovative consumption & services, modern food & agribusiness and new materials. The Company's financial investments business primarily consists of angel investments, venture capital and private equity across all stages of a company's life cycle. www.legendholdings.com.cn.

Press Information
ACN Newswire
Hong Kong, Singapore

Marie Bergado
Manager SEAsia
+65 6304 8926
email
www.acnnewswire.com


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