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Computer maker expands with five major projects

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STONE Electronic Technology will be catapulted back on to the fast-growth track with its aggressive launch of five strategic projects after a four-year consolidation.

''We will enter into the second phase of rapid growth beginning this year in both sales and profit,'' said president Duan Yongji in Hong Kong yesterday of the mainland-based manufacturer and distributor of word processors which was listed in the territory in August last year.

The company experienced its first phase of rapid growth in the 1980s, and Mr Duan expected it to grow at an annual rate of 30 per cent in the next three years.

He said Stone would spend US$100 million on product development in five years and the group, including its parent, Beijing Stone, would earmark $1 billion for overall development over the same period.

''The equity market is only one of the many ways of raising funds for the expansion plans'' said Mr Duan, adding that the company was highly liquid, with minimal long-term debt.

He expected the five major product categories to contribute 20 per cent of the company's revenues this year and 50 per cent next year, when the projects became fully operational.

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