Red chip Legend Holdings has returned to profitability with net earnings of HK$106 million in the half-year to September, compared with a loss of HK$48 million in the same period last year. The results, bolstered by strong growth in sales of its own brand of personal computers and distribution of foreign computer products, represented a 212 per cent surge over the pro forma profit of HK$34 million a year ago. The figures were in line with market expectations for a full-year profit of HK$242 million, or 18 per cent growth based on last year's pro forma results. Sales rose 41 per cent to HK$5.1 billion on a pro forma basis. The company recommended an interim dividend of two HK cents a share. Chairman Liu Chuanzhi said the company would start providing quarterly earnings reports from the third quarter of its financial year. 'The move will increase our transparency and shows we have confidence in our performance,' he said. The company was expected to invest heavily in the second half in research and development of both hardware and software, and manufacturing, he said. The existing forecast for capital expenses for the year was US$15 million to US$20 million, while the company had already spent HK$68 million in the first half. Chief financial controller Vincent Ching Siu-ming said there was no pressure on its financial resources and the company had no plans to raise funds in the short term. The company has HK$725 million in cash. It saved HK$18 million, or 45 per cent, in interest expenses in the first half after repaying HK$400 million of its HK$1.3 billion in short-term bank loans. Its net debt to equity ratio fell from 32 per cent to about 5 per cent to 6 per cent. The operating profit margin fell from last year's 4.1 per cent to 2.5 per cent in the first half as the company stepped up promotional campaigns.