China’s largest PC maker Legend Group Ltd [0992.HK] has reported a smaller than expected rise in profit in its half-yearly results.
For the six months to September 30, Legend’s net profit rose 2% to HK539 million ($69.4 million), against HK524.2 million ($67.5 million) in the same period last year.
This 2% rise was much lower than expectations of 11% growth. However, sales were up 11.8% at HK11.59 billion ($1.49 billion), from HK10.40 billion ($1.33 billion) in the same period in 2002. The company also announced it would pay an interim dividend of HK 0.02 per share.
The corporate sector accounted for 50.5% of revenue; consumer IT accounted for 35.7%; handheld devices 7.9%; contract manufacturing 3.6%; and IT Services 2.3%.
The results were affected by the outbreak of Sars in the first quarter, which badly hit sales in both the retail and corporate sectors. Since then, the second quarter has picked up a marginal 2%, although not enough to offset the impact of Sars.
The result also highlighted a worse-than-expected slide in average selling prices, which fell by 12%. At the same time, handsets sales fell 19%.
Legend is thought to command approximately 28% of the Chinese PC market, which is expected to grow 15% this year.
The second placed PC manufacturer, Founder, has roughly an 11% market share. US giant, Dell Computer [DELL], currently China’s fourth largest PC seller, is rapidly gaining market share at the expense of Legend.
This article was based on material originally published by ComputerWire.