Lenovo set for Taiwan

0

 

Lenovo is to become the first Chinese company to legally set up a subsidiary in Taiwan, the Financial Times (FT) has reported.

 

The Taiwanese government has confirmed that the firm has applied for and will be granted approval to establish a subsidiary.

 

Chang Min-pin, a senior official at the Taipei Cabinet’s Investment Commission, told the FT: "This will be approved as a special case, but it will not create a precedent for any future Chinese investments here whatsoever."

 

In August, Lenovo posted a 6 per cent rise in Q1 net profit to HK$357 million ($45.94 million) compared to HK$336.8 million in Q1 2004. Q1 revenue tripled to HK$19.6 billion from HK$5.9 billion a year earlier.

 

Lenovo bought IBM’s PC business in May for $1.25 billion.