PC maker Legend's 3Q profit soars

PC maker Legend's 3Q profit soars

Legend Holdings, China's biggest PC maker, reported net income up 68.7 per cent from a year earlier for the third quarter ended December 31, 2000, on consolidated revenue up 50.4 per cent.

The Hong Kong-listed unit of Beijing-based Legend Group Holding said in a statement that China's PC market defied a downward trend elsewhere in the world with a growth rate it estimated at 50 per cent for the quarter. Legend estimates it holds about 30 per cent of the PC market in China. It is the biggest seller of PCs in the Asia-Pacific region excluding Japan.

Net income attributable to shareholders grew to 249 million renminbi ($A56million) in the third quarter, from 147 million renminbi a year earlier. Revenue rose to 7.66 billion renminbi from 5.09 billion renminbi in the same quarter last year.

For the first three quarters of fiscal 2000, net income has more than doubled, rising 105 per cent to around 657 million renminbi from 321 million renminbi for the same period a year earlier. Revenue in the nine-month period has risen 67 per cent to 20.7 billion renminbi from 12.4 billion renminbi.

Legend announced on Tuesday it will build a third manufacturing base in two phases in the Pudong district of Shanghai. It will open in May with annual production capacity of about 800,000 units. A second phase will open by year's end and will add 700,000 units of capacity. A new Beijing factory set to begin operating in the current quarter will have annual capacity of 1.5 million units. The new plants will feed growing demand in the eastern region of China, Legend said in a statement.

In addition to PCs, Legend builds handheld devices and operates Internet content venture FM365 and a B2B (business-to-business) e-commerce Web site, E-bridge had generated over 100 million renminbi worth of sales by the end of December 2000, three months ahead of schedule, Legend said in the statement. Distributors can order more than 500 products on the site.

Legend's PC motherboard business also grew in the third quarter despite the downturn in the PC market elsewhere, Legend said.

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