Thursday, March 31st, 2016

HONG KONG, Mar 30, 2016 - (ACN Newswire) - Legend Holdings Corporation ( the "Company" or "Legend Holdings"; stock code: 3396.HK) is pleased to announce the audited condensed consolidated annual results of the Group for the twelve months ended December 31, 2015 (the "Review Period").

Financial Highlights

Twelve months ended 31 December, 2015
- Revenue of the Group was RMB309.8 billion, representing an increase of 7% as compared with the corresponding period last year
- Net profit attributable to equity holders of the Company was RMB4,659 million, representing an increase of 12% as compared with the corresponding period last year
- A dividend in respect of the year ended December 31, 2015 of RMB0.22 per share, representing a year-on-year increase of 20%, amounting to a total dividend of approximately RMB518 million, representing an increase of 42% as compared with the corresponding period last year

Upholding the vision of "becoming a globally respected, trusted and influential international investment holding group that builds leaders across various industries", Legend Holdings brought the unique two-wheel-drive business model into play to capture the development opportunity and market demands of economic transition, constantly optimizing the stock business and to achieve steady growth of results. Meanwhile, strategic investments and financial investments generate huge synergy that constitute the core advantages in enhancing portfolio value. In 2015, the net profit attributable to equity holders of the Company amounted to RMB4,659 million, representing an increase of 12% as compared with the corresponding period last year, with earnings per share at RMB2.14. A dividend in respect of the year ended December 31, 2015 of RMB0.22 per share, representing a year-on-year increase of 20%, amounting to a total dividend of approximately RMB518 million, representing an increase of 42% as compared with the corresponding period last year.

The two-wheel-drive business model of Legend Holdings comprises strategic investments and financial investments: The strategic investments focus on the company's strategic direction substantiated through acquisition or greenfield investment. With constant adjustment and optimization, it eventually formed a portfolio of multi-pillar businesses. The financial investments consist of various sections, namely angel investments, venture capital, private equity and minority interests. Two major businesses concurrently cover various stages of business development, and generate huge synergy in investment resources, market information, management experience and business cooperation, which will generate huge synergy. As the core advantages in optimizing assets portfolio value, it will achieve returns of 1+1>2

Mr. Zhu Linan, President of Legend Holdings, stated, "The Chinese and global economies advanced in the midst of trials and errors in 2015 while Legend holdings flexibly faced a series of uncertainties. Positioning in China and eyeing for the world, we proactively seek investment opportunities and create a quality and diversified investment holding platform, which will lead the gradual realization of corporation value and the advantages of two-wheel-drive model. Looking forward to 2016 and the longer future, Legend Holdings will continue to emphasize the investment themes of consumption and services for our strategic investment business, with resources concentrated in fields such as financial services, healthcare services, agriculture and food as well as Internet and consumer innovations. Meanwhile, facing an increasingly integrated global economy, we will create and manage our portfolios from a global perspective. The financial investment business will apply both conventional and novel strategies combining both short-term and long-term horizons. In this context, not only will we receive return from investments, but also strengthen the synergy between the two-wheel-drive businesses."

Strategic investments

During the review period, the strategic investments of Legend Holdings cover an array of industries and various stages of business development. After examining complex domestic economic environment, Legend Holdings is of the view that opportunities outweigh challenges in areas experiencing structural adjustments to the Chinese economy and transformation of the economic development model. While fluctuations in valuation is related to the stability of the Chinese economy and ongoing transformation of its development model, a continuous improvement in the fundamentals of underlying assets constitutes the real basis for sustained value growth.

Seize opportunities of forging pillar assets, continually optimize the portfolio value

Over the past year, Legend Holdings leveraged the experiences in strategic, operational and organizational aspects as always, and the strengths in resources including brand, capital and information, all contributed to the creation and enhancement of the value of our invested enterprises. The financial service segment achieved healthy development with outstanding results; the businesses directly facing consumers in the modern service segment achieved a rapid development; With regard to agriculture and food segment, it greatly enhanced the profitability and value of the business and turned loss into gain. Meanwhile, facing a severe external environment, the Company has examined the situation and constantly adjusted the business of invested companies in order to optimize the value of the portfolio.

Business review on the six major sectors of the strategic investment business

IT: During the Review Period, the revenue was RMB 293,255 million. The integration of Moto mobile-phone business and X86 server business was completed in 2015. The digestion of short-term pressure provided a solid runway for the take-off of its future business. Its business realignment plan is on track to achieve total savings of US$650 million in the second half of its fiscal year, and about US$1.35 billion on an annual basis. In the fourth quarter of 2015, Lenovo's market share continued to increase, and its worldwide PC market share reached another record-high level of 21.6% .Lenovo's mobile business achieved its first-time operational breakeven in the fourth quarter of 2015 after its acquisition of Motorola Mobile, maintaining its number four position. Meanwhile,The Enterprise Business Group, Ecosystem, Cloud Services Business Group (ECS) and others all demonstrated strong achievements.

Financial Services: During the Review Period, the revenue was RMB 905 million. In 2015, Zhengqi Financial further expanded its market share and achieved rapid growth in scale. Zhengqi Financial has realized 23% revenue growth to RMB 893 million and 35% profit growth to RMB 519 million. It established two new subsidiaries in commercial factoring and internet finance; Lakala processed over RMB1.6 trillion transaction volumes for the year 2015, representing an increase of over 300% as compared to 2014, in which the transaction amount of card acceptance business was over RMB900 billion,, positioning it at the forefront of the industry; In 2015,the financial segment of Legend Holdings welcomed a new member, JC Finance & Leasing. Since its incorporation, it is striving to become a leading financial and leasing company in respect of domestic healthcare services, environmental protection, clean energy, advanced manufacturing, public services and transportation equipment, with a clearly-defined horizontal and vertical focus.

Modern Services: During the Review Period, the revenue was RMB 1,495 million. Bybo Dental was pursuing national expansion in a rapid and organized manner and has already become the leading provider of private dental care services in the country. As of December 31, 2015, Bybo Dental owned 27 hospitals and 108 clinics, representing an 80% increase in the number of outlets year-on-year. Bybo Dental had 2,138 skilled healthcare professionals. In 2015, its number of dentists increased from 451 to 769. CAR successfully positioned itself in three major platforms, namely carsharing business, quasi-new car business and fleet management in order to access the broader automobile market. Its fleet has grown from 63,522 cars as of December 31, 2014 to 91,179 as of December 31, 2015. Its total revenue has grown from RMB3,520 million for the year ended December 31, 2014 to RMB5,003 million for the year ended December 31, 2015. And its net profit has increased from RMB436 million for the year ended December 31, 2014 to RMB1,401 million for the year ended December 31, 2015. CAR reinforced its absolute leading position in the car rental market. In the meantime, CAR has made significant development in value chain extension. It initiated comprehensive collaboration with UCAR in January 2015 providing professional on-demand chauffeured car services. According to report issued by Roland Berger in August 2015, UCAR secured 42% market share in the on-demand chauffeured car services market for mid- to high-end users, making it one of the largest on-demand chauffeured car services providers in China.

Agriculture and food: During the Review Period, the revenue was RMB1,639 million. Joyvio Group reported a substantial increase in the sales of agricultural products including blueberries and kiwifruit through continuously improving its planting technologies and developing new sources of supply and sales channels, and turned around in the reporting period through constant improvement on its management expertise, operational efficiency and restructuring and consolidation, leading to remarkably better performance. In addition, Joyvio Group realized the restructuring of the two companies' fruit businesses. Through this transaction, the channel capacity of the merged company was significantly enhanced with more balanced capability in different segments of the supply chain, leading in terms of scale in the Chinese fruit industry, with increased bargaining weight on both the upper and lower streams, which translated into improved profitability. Joyvio Golden Wing Mau, as an associate of Joyvio Group, will become a fruit business platform, creating a fruit industry chain platform business with global influence.

Property: During the Review Period, the revenue was RMB10.7 billion. In 2015, the Company managed to control the number and pace of newly started projects, actively reduced inventory pressure and increase presale income; the real estate portfolio of Raycom covered 15 Chinese cities and included 52 projects.

Chemicals and energy materials: During the Review Period, the revenue was RMB1,839 million. Development of chemicals production facilities of Shenda Chemicals and Haoda Chemicals, which were built since June 2012, have been completed construction and put into production and achieved safe, stable and full-capactiy operation. With the gradual implementation of subsidies by the State and local governments to vehicles powered by lithium-ion battery, demand for electric vehicles was growing fast. Lithium-ion power battery products used for electric vehicles of Phylion Battery obtained certifications from renowned electric automobile manufacturers in terms of quality and safety. Its products were in short supply throughout the year and the sale of new energy vehicle products significantly increased.

Deeply penetrate "Internet +" to each segment, accelerate the layout of upgrading traditional industry

During the Review Period, Legend Holdings also pursued investment opportunities regarding the penetration and enhancement by Internet to conventional industries in 2015 and the Internet-related investment was more focused on the confirmed strategic directions. In the modern service segment, the Company invested in Social Touch and; in the agriculture and food segment the Company invested in Cloud Farm and Liquor Easy.

Social Touch: Social Touch is a provider of the latest enterprise mobile marketing solutions, which helps its corporate customers to establish connections with consumers in a new environment and manage these connections in an effective way.

XYWY.Com: Currently, is the leading platform providing one stop Internet healthcare services in China. It is also one of the earliest platforms to explore and implement Internet healthcare services in China.

Cloud Farm: Cloud Farm is China's first Internet-based agriculture-related service provider which integrates agriculture-oriented e-commerce, customization and trading of agricultural products, rural logistics, agricultural technology services and rural finance.

Liquor Easy: Liquor Easy is a dedicated liquor retailer running chain store networks. Its business model is "Internet platform + call centre + physical outlets + delivery in 20 minutes" combined online and offline operations.

Financial Investments

Insight into the trends of economy and market led to significant growth in financial investment gain

In 2015, Mainland China and Hong Kong stock market grew rapidly, along with a sizable adjustment The Company captured opportunities in the capital market for the financial investment platform and actively carried out adjustment to the portfolio through project exits, creating sound cash return. During the reporting period, the investment income and gains of the financial investments amounted to RMB4,049 million, representing an increase of 63% compared with the corresponding period in 2014, the net profit amounted to RMB4,187 million, representing an increase of 98% compared with the corresponding period in 2014.The net profit generated from financial investments attributable to equity holders of the Company for the year amounted to RMB4,127 million, representing an increase of 121% as compared with the corresponding period in 2014.

Legend Capital: During the reporting period, Legend Capital managed 14 phases of USD and RMB funds in total. Major investments include Chinese enterprises and cross-border opportunities at the start-up stage and growing stage of TMT and innovative consumption, modern services, healthcare, culture and sports sectors. In 2015, it completed 72 new project investments. During the reporting period, Legend Capital fully or partial exited 22 projects, contributing cash inflow of over RMB1.2 billion for Legend Holdings, achieving sound cash returns. As of December 31, 2015, 37 of Legend Capital's portfolio companies have been successfully listed and another 6 are listed on the NEEQS.

Hony Capital: As of the end of 2015, Hony Capital managed 9 phases of USD, RMB and mezzanine funds in total. Its main focus includes reforms of SOEs, growth of private enterprises and cross-border mergers and acquisitions. It consistently carries out investments with specific industry themes, such as consumption, services, general healthcare, advanced manufacturing and mobile Internet.

In 2015, Hony Capital completed 8 new projects or follow-on investments in existing projects. During the reporting period, Hony PE funds fully or partially exited 12 projects, and Hony mezzanine funds completed 2 projects exits, contributing cash inflow of over RMB4.2 billion for Legend Holdings. As of December 31, 2015, 33 of Hony's portfolio companies have been successfully listed onshore or offshore (including PIPE investment4) and another 3 are listed on NEEQS.

Legend Star: During the reporting period, Legend Star manages 2 funds with a fund size of approximately RMB1.1 billion. Legend Holdings is the sole contributor of the fund. Since the incorporation of Legend Star in 2008, it systematically deployed in three areas, namely TMT, healthcare and intelligent machines, and became a leading angel investment institution leveraging its unique resources and brand advantages. During the reporting period, it completed investments in 52 projects, of which 24 projects have finished another round of financing.

Legend Holdings carried out direct investments in high-quality projects in domestic and overseas primary and secondary markets. These investments are increasingly becoming one of the important sources contributing to the continuous growth in value and cash profit.

Looking forward, Mr. Liu Chuanzhi, Founder and Chairman of Legend Holdings, stated, "Legend Holdings will as always, take value creation as our due responsibility while leveraging and enhancing the two-wheel-drive business model as well as our cutting edge in value enhancement through management and strategic services. Focusing on opportunities in defined strategic fields domestic and abroad, Legend Holdings will take into account both external environment and our own situation in dynamically optimizing and adjusting the portfolio, thus enabling a sustained and fast growth of its value. By adhering to a business philosophy based on good faith and integrity, we will reward our shareholders with positive returns from an ever-growing business over the medium and long run."

About Legend Holdings Corporation

Legend Holdings Corporation is a leading Chinese investment group. The Company conducts its business through strategic investments and financial investments. Through strategic investments, the Company invests in companies across six segments: IT, financial services, modern services, agriculture and food, property and chemicals and energy materials. The Company's financial investment business primarily consists of angel investments, venture capital and private equity across all stages of a company's life cycle. Over the past 30 years, under the leadership of the Company's Founder and Chairman, Mr. Liu Chuanzhi, and President, Mr. Zhu Linan, the Company has capitalized on understanding of China's key development themes, complementary investment businesses and extensive management expertise to cultivate a number of influential outstanding enterprises. The Company was listed on the main board of Hong Kong Stock Exchange on June 29. In August, Legend Holdings has been added to the Hang Seng Composite LargeCap & MidCap Index ("HSLMI") under the Hang Seng Composite Index ("HSCI") Series.

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Legend Holdings Corporation Announces 2015 Annual Results


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