Global economic uncertainty affecting business, LEGENDHOLDING's net profit attributable to equity holders drops by 57% | Financial Report Insights

LEGENDHOLDING Co., Ltd. released its interim performance for the first half of this year on Friday. Although revenue increased year-on-year, net profit attributable to equity holders of the company dropped by over 57%. The company stated that the continuous rise in complexity and uncertainty of the global economic situation has affected the profit contribution of the industrial operation segment and the investment business of the industrial incubation and investment segment. 1) Key Financial Data: Revenue: RMB 233.4 billion, up 16% year-on-year; Net Profit: RMB 2.805 billion; Net Profit Attributable to Equity Holders of the Company: RMB 0.286 billion, a significant decrease of 57.2% year-on-year; Earnings Per Share: RMB 0.12. 2) Segment Data: Industrial Operation Revenue: RMB 233.139 billion, up 15.9% year-on-year; Industrial Incubation and Investment Revenue: RMB 2.229 billion, up 16% year-on-year; Industrial Operation Net Profit: RMB 1.433 billion, down 17.3% year-on-year; Industrial Incubation and Investment Net Loss: RMB 0.451 billion, with a widened loss of 11.3% year-on-year; The company stated that during the reporting period, LEGENDHOLDING continued to drive industrial innovation through technological innovation, focusing on new quality productivity as an important focus for high-quality corporate development. It deepened its layout in frontier areas such as artificial intelligence, biomedicine, new materials, and new energy, while also exploring new fields, achieving good results in building a modern industrial system. The company continued to strengthen its technological research and development, with R&D investment growing by 3.4% to RMB 7.3 billion. Its subsidiary, Lenovo Group, was the first to launch the world's first AI PC and multiple AI servers, marking breakthroughs in strategic products. Meanwhile, the LEGENDHOLDING system accelerated the development of cutting-edge new materials, innovative drugs, biomanufacturing, commercial aerospace, and other industries, proactively laying out new tracks such as quantum technology and life sciences to create new quality productivity growth poles. During the reporting period, the company invested in nearly 40 technology projects, and as of now, it has invested in 120 national-level specialized and new "little giant" enterprises, leading the industry. Currently, the LEGENDHOLDING system supports over 90% of the "China Top 500 Manufacturing Enterprises," more than 1,000 leading manufacturing companies, and over 2,000 growing manufacturing companies. Its funds have invested over RMB 20 billion in the manufacturing industry, facilitating the listing of dozens of manufacturing companies and creating around 20 manufacturing champions. As a global leading full-stack AI product portfolio and solution service provider, Lenovo further enhances its layout and application promotion in the field of artificial intelligence, building an AI+ application ecosystem and investing in over 250 AI enterprises Some analysts believe that although LEGENDHOLDING's net profit attributable to shareholders in the first half of the year decreased compared to the same period in 2023, there is a noticeable improvement compared to its performance in 2023. Additionally, the company's first-half revenue recorded a year-on-year increase, indicating that its various businesses are still actively advancing and developing. The stable industrial foundation also provides solid support for the company's sustainable development. Currently, LEGENDHOLDING is gradually emerging from the pressure period of adjustment and transformation, and its forward-looking layout in cutting-edge fields has also achieved stable and continuous accumulation during this period