Legend to pump assets into HK unit

Beijing's Legend Group plans to inject most of its business into its Hong Kong-listed vehicle by the end of December and raise its shareholding from 42 per cent to more than 50 per cent, chairman Liu Chuanzhi says.

The listed vehicle, Legend Holdings, posted post-tax losses of $48.6 million in the year to March 31, down from losses of $194.6 million in the previous year.

The asset injection is expected to improve its earnings.

Asked yesterday if the China Securities Regulatory Commission (CSRC) had approved Legend's plan for asset injection, Mr Liu said: 'It has given us a very good answer. We are very satisfied. We will implement the decision soon. It is up to the CSRC to decide when to disclose its decision.' More than half of the business of the Beijing-based Legend Group would be injected into the listed vehicle and this would be completed by the end of December, he said.

After the transaction, Legend Group's ownership of the listed vehicle will rise from 42 per cent to more than 50 per cent.

Mr Liu said the group had enjoyed an excellent year, with a sharp rise in sales and profits, ranking first in sales of personal computers in the domestic market with 10.9 per cent, ahead of IBM with 9.1 per cent.

Mr Liu was speaking at a presentation of the group's new products.