With its predecessor founded in 1984, Legend Holdings, under the leadership of Mr.
Liu Chuanzhi, has grown through its continuous pursuit of higher goals. It has undergone
three stages of development, expanding from a single IT industry into diversified
businesses, and then transformed into an international conglomerate.
Legend Holdings is committed to the mission of serving the country and society through
building outstanding enterprises in multiple industries.
After 30 years of practices and explorations, Legend Holdings has achieved breakthroughs
in four aspects:
Firstly, Legend Holdings has explored and pioneered a way with Chinese features
of high-tech commercialization under research institutions. Lenovo’s development
practice, Legend Holdings’ venture capital investments, entrepreneur trainings,
and angel investment business are all facilitating and propelling the growth of
technology enterprises in China.
Secondly, based on the domestic market of China, Legend Holdings stood out in the
competition with multinational PC giants, stimulated the growth of a large group
of domestic IT companies. Later, Lenovo’s success in its internationalization, as
well as the overseas investments and mergers carried out by other member companies
of Legend Holdings , have built up valuable experiences for other Chinese companies
Thirdly, as a state-owned high-tech enterprise, Legend Holdings has reformed into
a limited liability company, making employees the owners of the Company and laying
a solid foundation for the long-term development of the company. In addition, it
has set a pioneering example of mechanism reform for other hi-tech companies under
Chinese science research institutions.
Fourthly, Legend Holdings has summed up a set of rules of corporate management centering
on the “Three Management Keys,” and the investment philosophy of “prioritize the
business and emphasis the people”. It has also nurtured a group of excellent leaders,
who form the core competitiveness of Legend Holdings and have achieved the leading
positions in multiple industries.
Development in the IT Sector
Summary: In 1984, Mr. Liu Chuanzhi and 10 other researchers founded Legend with
funding from the Institute of Computing Technology Chinese Academy of Sciences (CAS).
They first gained capital and enterprise management experiences through trade practices.
From the launch of their first hit product, a Legend Chinese Character Card for
computers, to the launch of their own brand of personal computers and maintain a
high growth speed, Legend has gone through twists and turns in its history of development.
Lenovo computers acquited the largest market share in the Mainland China market
in 1997 and secured the top position in the Asia and Pacific (excluding Japan) in
2000. In addition, Legend’s IT product distribution business has been maintaining
its No. 1 position in China.
Meanwhile, Legend constantly reflects on the foundamental rules of corporate management
in its practices, and formed the “Three Management Keys” (“to build a strong team
of leaders, develop the correct strategies and take people with you”). Through an
innovative approach, the company advanced the reform of its mechanism, which brought
vigor and vitality to the company. Meanwhile, it nurtured a generation of leaders
and excellent talents, including Yang Yuanqing, Guo Wei, Zhu Linan, etc. Through
continuous exploration and practices, the company found a unique way (“trade-manufacturing-technology”)
to commercialize high-tech research results, which laid a solid foundation for its
further development, and built up valuable experiences and lessons for China’s high-tech
In 1984, Legend was founded.
With funding from the Institute of Computing Technology Chinese Academy of Sciences
(CAS), Mr. Liu Chuanzhi and 10 other researchers founded the Chinese Academy of
Sciences Computer Technology Research Institute New Technology Development Company
(predecessor of Legend Holdings) in a reception room. The group of pioneers had
little knowledge of the market, received the rights of managing human resources,
finance, and making major business decisions from the Computing Institute, and started
their explorations at the start of China’s reform and opening-up. They secured.
In 1984, Mr. Liu Chuanzhi and 10 other researchers started Legend in a 20-square-meter
reception room of the Institute of Computing Technology Chinese Academy of Sciences.
In 1985, Legend ventured into the distribution business.
Starting in 1985 as a sales agent for IBM, AST, HP and other international PC brands,
Legend began to accumulate capital and learn about the management and operations
of international enterprises. This laid a foundation for the development of PC of
its own brand. In 1986, Legend developed its first hit product, the Legend Chinese
Character Card, which won the first prize for “National Award for Progress in Science
In 1986, Legend developed its first hit product, the Legend Chinese Character Card.
In 1988, Legend Hong Kong was founded.
In 1988, Legend launched its first public recruitment campaign.
In May 1988, Legend published a recruitment advertisement on the important news
page of the China Youth Daily to launch the company’s first public recruitment campaign.
A group of fresh graduates with bachelor’s and master’s degrees, including Yang
Yuanqing and Guo Wei, joined Legend at that time. These new hires injected new energy
into the company and later became the backbone of Legend.
In 1992, Legend cooperated with the China Construction Bank to provide loans to
72 young employees, included Yang Yuanqing and Guo Wei, to buy their own apartments
while Legend served as the loan guarantee.
In 1990, the first “Legend” brand PC was launched.
Legend founders were dedicated to the goal of developing PC of their own brand despite
the lack of relevant license from the State. In 1988, Legend set up its Hong Kong
branch in an effort to accumulate capital through international trade and acquire
first-hand experience in the overseas market. Its Hong Kong branch was engaged in
the development, manufacture and sales of computer motherboards which were exported
to European and American markets and had formed certain scale. In 1990, the “Legend”
brand PC became a hit at the Hanover (Germany) Electronics Fair and the company
eventually received the license from the State. In 1990, the “Legend” brand PCs
were launched in the domestic market.
In 1990, the “Legend” brand PC (Legend 286) was launched in the domestic market.
In 1994, Legend founded its personal computer division and got listed in HK.
In the 1990s, the domestic PC market changed significantly as the country cancelled
import quota system and reduced tariffs. As a result, large numbers of international
PC producers entered the Chinese market and posed threats to domestic brands, prompting
concerns about the fate of Legend. After in-depth analysis and research, Legend
determined to stick to its own brand in an effort to push forward the domestic computer
industry. As a result, Legend initiated restructuringin 1994 and appointed the then
29-year-old Yang Yuanqing as general manager of the personal computer division.
This division leveraged channel partners to compete neck-to-neck with foreign competitors.
In the same year, Legend was listed on the Hong Kong Stock Exchange under the code
1994, the Legend personal computer division was founded.
In 1994, 29-year-old Yang Yuanqing (as in the picture) was appointed general manager
of the personal computer division.
Legend was listed on the Main Board of the Hong Kong Stock Exchangeon February 14,
In 1997, Legend computers claimed the biggest market share on China’s domestic market.
Legend reflected on the the industry pattern and enterprise development after years
of exploration and practice. In 1997, Legend PC claimed the biggest market share
on China’s domestic market for the first time .
1997, Legend integrated its businesses in Beijing and Hong Kong.
In 1995, Legend Hong Kong reported a loss of 195 million Hong Kong dollars, which
amounted to approximately the profits made in the previous three years. Legend was
forced to raise fund and conduct a restructuring. In order to further emanicpate
its productivity and to form a unified headquarter, the company implemented an integration
of its Beijing and Hong Kong operations in 1997 through which Legendtransferred
the PC, distribution and system integration businesses from Beijing branch into
Hong Kong branch. As a result, a unified Legend was able to develop and prosper
from then on.
In 2000, Legend computers acquired the largest market share in the Asia-Pacific
region (excluding Japan) for the first time.