PR-Inside.com: 2018-03-28 10:18:27
Strengthening its 'Two-Wheel-Drive' Business Model, Developing an Ever-growing Investment Portfolio
HONG KONG, Mar 27, 2018 - (ACN Newswire) - Legend Holdings Corporation (3396.HK) is pleased to announce audited annual results for the Group for the year ended December 31, 2017. Legend Holdings recorded performance growth for the third consecutive year since its listing. The overall revenue of the Group was RMB316.3 billion, representing an increase of 3% over last year. Net profit attributable to equity holders of the Company amounted to RMB5,048 million, representing an increase of 4% over last year, and (basic) earnings per share amounted to RMB2.16.
"In 2017, in such a favorable context, Legend Holdings has made steady progress in business development in line with its strategic development, strengthening advantages of its 'two-wheel-drive' business model, the three major segments of the Group's strategic investments create an ever-growing investment portfolio, achieved a breakthrough development of pillar assets acquisition and overseas resources allocation, focused on the connection of the invested companies with the capital markets and external resource portfolio companies. Through diversified 'management + strategic service', meaning new deployment or positively optimization, it has further enhanced the portfolio value," stated Mr. Zhu Linan, President of Legend Holdings.
"Meanwhile, the Group has enhanced the highly professional personnel recruitment, strengthened the organizational structure such as the investment management system, laid a solid foundation of the Group's culture, further promoted the organization's morale and engagement in order to poise for the company's medium-to-long-term development. In 2018, the Group will continue reinforcing the synergy advantage of value creation and the two-wheel-drive businesses model, through clear strategy and stronger execution, to drive more strategic outcome in the future. We hope for a better return to shareholders with our more optimized investment portfolio and significant value growth."
--Continuous growth in 'two-wheel-drive' businesses
During the Review Period, Legend Holdings' strategic investment segment has gone on the track of sound progress and achieved a steady growth of results.
Revenue from the financial services segment increased by 130% year-on-year, with net profit attributable to equity holders of the Company increasing by 7%. Among which Zhengqi Financial optimize its asset allocation and implement the long-term strategy of investment-loan linkage, and achieved stable growth in the business scale and profits; Kaola Technology, an innovative financial service provider, increase in its profit margin through development and upgrading of risk control technology; JC Finance & Leasing has actively pursued market expansion in its finance leasing business, optimized its business mix, and achieved healthy development.
Revenue from the innovative consumption and services segment increased by 32% year-on-year, achieving a decrease in losses. During the Review Period, while the Group was developing and enhancing its business value, it grasped the market and national policy trend, and fully release the advantages of the 'two-wheel-drive' model, invest in Better Education Educational Group, a leading kindergarten group with direct operation networks of middle and high-end kindergartens in China, by purchasing controlling equity interests, and made strategic investment in Eastern Air Logistics Co., Ltd. ("EAL"), one of the first pilots for mixed ownership reform of state-owned enterprises, achieving a new deployment in education and aviation logistics segments.
Revenue from the agriculture and food segment increased by 52% year-on-year and the net profit attributable to equity holders of the Company increased by 231% year-on-year. The Group took the Joyvio Group as a platform, to focus on developing two supply chains of fresh fruits and animal protein. During the Review Period, Golden Wing Mau and KB Food further enhance the competitive advantage; the continuous optimization of Funglian Group's product mix led to a substantial increase in the overall operating efficiency and profit; Joyvio Agriculture acquired the controlling interests of Qingdao Starfish; Joyvio Group completed strategic investment in Nine Masters, and expanded the strategic layout in the integrated food materials supply chain.
In addition, in the Information Technology segment, the Group adhered to its 3-wave strategy, and revenue increased by 6% year-on-year. Facing the challenge, Legend Holdings will actively provide all-round support on this matter; revenue of the new material segment increased by 4% and net profit attributable to equity holders of the Company increased by 242%. During the Review Period, Lenovo Group further optimized its product mix and enhance its profitability and market influence.
The Group's financial investment business recorded steady development, the net profit attributable to equity holders of the parent increased by 42%, the investment income and gains increased by 122%, the management of the three fund platforms has steadily expanded, and the total asset was approximately RMB 110 billion. During the Review Period, Legend Capital continued to reinforce its influence on its focusing segments, invested in 60 new projects and exited from 21 projects, 8 portfolio companies were successfully listed on domestic or overseas capital markets through initial public offerings, which increased the portfolio value.
Hony Capital maintained its leading position in state-owned enterprise reform and cross-border investments while achieving initial success in respect of its trial investment in real estate finance, replenishing its investment areas from two dimensions, completed investment or additional investment in 29 new projects and existed 21 projects. Besides, Hony Capital obtained the license for mutual fund business in January 2018, and new opportunities are expected to arise for the future development of its product mix and asset under management; Legend Star raised fund from third-party investors for the first time, in 2017, Legend Star invested in more than 50 onshore and offshore projects, and 63 portfolio companies portfolio companies completed follow-on financing, and continued to consolidate its leading position among domestic venture capital institutions.
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