Turnover and profit boost for Legend

Legend Group has revealed its third-quarter results for the period ended 31st December 2002.

Legend Group has revealed its third-quarter results for the period ended 31st December 2002.

During the third quarter of financial year 2002/03, the group recorded a consolidated turnover of approximately HK $5598 million, representing an increase of 8% compared with a turnover of HK $5183 million during the same period last year.

Profit attributable to shareholders was approximately HK $318 million, slightly higher than last year's figure of HK $312 million.

This represents a surge of 25.2% for shareholders excluding the gains on disposal of subsidiaries, associated companies and investment securities.

During the period, the group's profit margins achieved further improvement with a gross profit margin rise from 13.94% last year to 14.02%, while net profit margins surged from 4.90% (excluding the gains on disposal of subsidiaries, associated companies and investment securities) to 5.68%.

The gross profit margin of consumer IT business has achieved significant improvement, rising from 10.6% of the third quarter last year to 13.3% this year.

Yang Yuanqing, President and CEO of Legend said, "During the quarter, Legend's strategies of technology innovation and service-orientated transformation have begun to bear fruit, and certain significant progresses have been attained.

With the debut of the cutting-edge 'dual mode' PCs, the consumer IT business has made significant improvements in unit shipment and gross profit margins through product differentiation led by technology innovation".

During the quarter, Legend also hosted Legend World 2002, the first innovative technology convention organised by the group.

At the convention, Legend introduced the visionary concept of 'collaborating applications' which allows the collaboration of different IT products to achieve intelligent interconnection, resource sharing and joint services.

Yang continued, "Legend's achievement in technology innovation is also demonstrated by the successful debut of Legend's supercomputer with computing speed reaching 1000GFLOPS.

Its application has been extended to a range of sectors, including scientific research, petroleum, electricity supply and coal chemistry.

Winning these orders has reinforced Legend's strengths in the high performance computer market and highlighted its technology capabilities in this highly specialised segment.

The introduction of Legend's supercomputer was regarded as one of the 'Top 10 News of 2002 in China' by Xinhua News Agency and one of '10 Major Technology Development of China' by the Chinese Academy of Sciences and Chinese Academy of Engineering, further enhancing Legend's branding and corporate image".

Legend has been actively pursuing innovations in product technology.

In October last year, the Group launched its "dual mode" home computers, the Tianjiao and Tianrui series, which adopt the Group's self-developed operating system, LEOS.

Legend's "dual mode" home computers accounted for over 30% of the total unit shipment of home computers in the third quarter and significantly raised the gross margin of the consumer IT business.

Legend's "dual mode" home computer received a number of local and international awards and has applied for more than 40 patents.

The China PC market sustained stable growth with unit shipments increasing 20% year-on-year in quarter the October to December 2002.

Small and medium enterprises and education purchases continued to drive the growth of commercial PC market.

During the review period, growth in the home PC market has developed at a moderate rate with demand stimulated by the National Day promotions.

In addition, the digital product market progressed quickly and has stimulated the demand for digital application of PC.

"Looking ahead, Legend will continue its transformation into a service-oriented company, hand-in-hand with its commitment to technology innovation.

Tailoring solutions to customer needs, Legend will be rolling out more products, applications and services to create greater value for customers", Yang concluded.

Back to top