Legend handset venture to break even

Legend Group, China's leading domestic computer manufacturer, expects its mobile phone handset venture to break even next year, according to the group's chief financial officer, Mary Ma Xuezheng. Legend formed the 60-40 venture with Xiamen Overseas Chinese Electronic Co (Xoceco) in February and later increased its stake to 80.8 per cent. Xoceco made 400,000 handsets in 2001 and with Legend's investment will radically increase its capacity. Legend hopes to become one of the top three mobile handset makers in China within three to five years, when the devices will account for about 10 per cent of its revenue, up from 1.1 per cent in the year ending March 31. Ma also said that Legend was unlikely to make special provision for the closure of its financial website, www.yestock.com, as the capital involved was insignificant. About 40 employees were affected by the closure, which was due to lower-than-anticipated levels of business. Legend paid US$35m two years ago in cash and shares for a 40 per cent stake in the venture.