Leading Spirit Holdings, which trades motorcycle parts, is in talks with a mainland enterprise to make and trade car parts in China, chairman Wong Shi-ling said. He said the talks were aimed at widening its income sources following the spin-off of its home appliances division - Leading Spirit Conrowa Electric - in June. He said Leading Spirit would focus on motorcycle and car-parts trading, securities trading and television manufacturing. 'We are discussing co-operative ventures such as setting up a joint venture or buying a stake in the mainland enterprise which is directly under state administration,' he said. Mr Wong said he would not divulge the identity of the mainland enterprise as Leading Spirit was competing with another Hong Kong-listed company for the deal. Sources said the enterprise was Tianjin municipal government's coming listed vehicle in Hong Kong, which is holding talks with car-parts maker Innovative International (Holdings). Leading Spirit made a net profit of $501 million in the year to June, approximately 5 per cent of which was derived from securities trading. Mr Wong said the company would increase its exposure to stock trading this year, which was expected to have a more than 15 per cent profit margin. Mr Wong and the company hold an 11 per cent stake in property developer Ka Wah International while the company holds some shares in television trader Yugang International.