Legend Holdings plans to list in Hong Kong in 2014
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Legend Holdings Ltd., the parent company of China's biggest PC manufacturer Lenovo, plans tointends to go IPO in Hong Kong in 2014, domestic media the China Business News reported on Monday, citing the company's Chairman and President Liu Chuanzhi.
Legend will wrap its core assets and businesses, including investing, IT manufacturing, real estate, modern services, coal chemical and modern agriculture on Hong Kong Stock Exchange, and maintain a 30 percent year-on-year profit growth rate..
Liu said that the two investing firms under the company's umbrella will provide sound cash flows to the listed entity.
Five core businesses will be guarantees for profit of the company, according to Liu.
Its real estate business, managed by Raycom Real Estate Development Co., Ltd., goes on wellhas maintained sturdy in second-and-third tier cities and is hardly affected by the nation's macro control policies to curb home prices. Liu also said that it iss possible Raycom will be pealed off from Legend Holdings after the company's IPO in Hong Kong and goes will shift to theto A share market independently.
Legend Holding also expects huge returns from modern services including its car renting rental business operated by China Auto Rental Ltd., and electronic payment services operated by lakala.com. Inc.
The company will pump more capital in modern services, Liu said.
As to its coal chemical business, will start to profitreturns are likely to be generated following after the company's IPO in 2014, Liu said. The company had invested 18 billion yuan ($2.74 billion) in manufacturing bases of a 1-million-ton- annual- production capacity methyl alcohol factory and a 1-million-ton- annual production capacity Methanol –To- Olefin production line and related derivative products. The facilities will help to ease China's heavy rely reliance on oils and be able to gain profit when the company completes IPO processes..
As China faces tougher situation of food safety, the company will alocate more resources to develop modern agriculture business. The company will raise rice, fruits, aquatic products, cattle and others. The company will use leading technologies and hope to build its own brands in the near future.
Legend Holdings was established in 1984 by 11 scientific researchers. As of September 2010, the company had a total assets of 112.1 billion yuan ($17.07 billion) and nearly 40,000 employees worldwide.
