Hong Kong's Legend Holdings, owner of the Lenovo brand of PCs and mobile phones, is shifting its focus to consumer technology and lifestyle-related services. The pivot comes after the firm lost half its value since listing in China in 2015, with H1 2016 net profit down 36%YoY to CNY2.58bn ($386.8m) and revenues 5% lower at CNY135bn; it tech sector accounted nearly 93% of total revenue and contributed 27.8% to net profit whereas its non-IT sector investments, particularly three financial investment arms, artificial intelligence and smart manufacturing and "innovative consumption" like car-hailing apps, contributed 7% of revenue but delivered 72.2% of profit. The firm said there are no plans to cut its holding in Lenovo.
China's Legend Holdings, owner of the Lenovo brand of PCs and mobile phones, is shifting its focus to consumer technology and lifestyle-related services. The pivot comes after the firm lost half its value since listing in Hong Kong in 2015, with H1 2016 net profit down 36%YoY to CNY2.58bn ($386.8m) and revenues 5% lower at CNY135bn; it tech sector accounted nearly 93% of total revenue and contributed 27.8% to net profit whereas its non-IT sector investments, particularly three financial investment arms, artificial intelligence and smart manufacturing and "innovative consumption" like car-hailing apps, contributed 7% of revenue but delivered 72.2% of profit. The firm said there are no plans to cut its holding in Lenovo.