Use CTEs to eliminate subselects and make your code more readable (the view is also eliminated by the first cte):

WITH cte_tables (zCardNo, zDate, zDatetime1, zChannel_no)

AS ( SELECT cardno, CONVERT(DATE, datetime1), datetime1, channel_no

FROM TABLE1

UNION ALL

SELECT cardno, CONVERT(DATE, datetime1), datetime1, Action

FROM TABLE2

)

, cte_minmax (aCardNo, aDate, aMinDatetime1, aMaxDatetime1)

AS (

SELECT zCardNo, zDate, MIN(zDatetime1), NULL

FROM cte_tables

WHERE zChannel_no = 1

GROUP BY zCardNo, zDate

UNION ALL

SELECT zCardNo, zDate, NULL, MAX(zDatetime1)

FROM cte_tables

WHERE zChannel_no = 2

GROUP BY zCardNo, zDate

)

SELECT aCardNo AS cardno

, REPLACE(CONVERT(VarChar(50), aDate, 103),'/','-') AS [date]

, LEFT(CONVERT(varchar,MAX(aMinDatetime1),108),5) AS intime

, LEFT(CONVERT(varchar,MAX(aMaxDatetime1),108),5) AS outtime

FROM cte_minmax

GROUP BY aCardNo, aDate