Our History and Corporate Structure
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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. OUR HISTORY AND CORPORATE STRUCTURE OUR HISTORY With the approval of the CAS, the Institute of Computing Technology Chinese Academy of Sciences (中國科學院計算技術研究所), an academic establishment founded by the CAS in 1956 which specializes in comprehensive research on computer science and technology, funded the establishment of Chinese Academy of Sciences Computer Technology Research Institute New Technology Development Company (中國科學院計算技術研究所新技術發展公司), the predecessor of our Company, in the PRC in November 1984 as an enterprise owned by the whole people (全民所有制企業) with a registered capital of RMB1,300,000. With the approval of the Chinese Academy of Sciences High-tech Enterprises Bureau (中國科學院高技術企業局), the registered capital of the predecessor of our Company was reduced to RMB1,000,000 in June 1990, whose name was changed to Beijing Legend Computer New Technology Development Company (北京聯想計算機新技術發展公司) in April 1991. With the approval of the Chinese Academy of Sciences High-tech Advancement and Enterprises Bureau (中國科學 院高技術促進與企業局) and the Institute of Computing Technology Chinese Academy of Sciences, Beijing Legend Computer New Technology Development Company was renamed Legend Group Holdings Company (聯想集團控股公司) and its registered capital was increased to RMB100,000,000 in August 1998. In April 2000, Legend Group Holdings Company received the approval-in-principle from the Ministry of Finance of the PRC (中華人民共和國財政部) and the Ministry of Science and Technology of the PRC (中華人民共和國科學技術部) in relation to its reform into a limited liability company. With the approval of the CAS, the reform was completed on June 22, 2001 and Legend Group Holdings Company was renamed Legend Holdings Limited (聯想控股有限公司) on the same date. CAS and the former Employee Shareholding Association contributed RMB429,559,259.61 and RMB231,301,139.79, respectively, to the registered capital of Legend Holdings Limited, each representing 65% and 35% of the equity interests in the entity, respectively. In August 2013, Legend Holdings Limited commenced its joint-stock reform process, and conducted an independent valuation of its net asset value as at June 30, 2013. In accordance with the valuation report, the audited carrying amount of net assets of RMB2,529,122,962 was used to determine the value of the capital contribution by the Promoters for the incorporation of our Company. The CAS approved our conversion into a joint stock limited liability company in January 2014. We were incorporated under the name of “Legend Holdings Corporation” (聯 想控股股份有限公司) with a registered capital of RMB2,000,000,000 with capital contributions from our Promoters, in proportion to their respective share holdings in our Company. The portion of the audited value not converted into our Company’s share capital was kept as our capital reserve. We received a new business license from the Beijing Administration for Industry and Commerce (北京市工商行政管理局) on February 18, 2014. Upon conversion into a joint stock limited liability company, our Promoters included CAS Holdings, Lian Chi Zhi Yuan, China Oceanwide, Lian Heng Yong Xin, Mr. Liu Chuanzhi, Mr. Zhu Linan, Mr. Ning Min, Mr. Huang Shaokang, Mr. Chen Shaopeng and Mr. Tang Xudong with CAS Holdings holding 36.0% of our Shares and the other Promoters holding the remaining 64.0% of our Shares. Our PRC legal advisors confirmed that we have obtained all the necessary approvals – 130 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. OUR HISTORY AND CORPORATE STRUCTURE from the relevant PRC government authorities with respect to the conversion of our Company into a joint stock limited liability company and have completed all the necessary filing procedures in compliance with the relevant PRC laws and regulations. For more information about our Promoters and the corporate and capital developments of our Company, please refer to the sections headed “– Shareholding Changes”, “– Our Promoters” and “Appendix VII – Statutory and General Information – A. Further Information About Our Group”. Key Milestones The following sets forth the milestones in the development of the Group: Year Events 1984 Chinese Academy of Sciences Computer Technology Research Institute New Technology Development Company (中國科學院計算 技術研究所新技術發展公司), the predecessor of our Company, was incorporated. 1985 Our Group ventured into the PC distribution business, acting as the sales agent for IBM, AST and HP in the PRC. 1990 The very first “Legend” brand PC was launched in the market. Our Group changed our role from that of an agent for imported computer products into that of a producer and seller of our own branded computer products. 1992 The “Legend” brand PCs won several accolades in the PRC such as Top Achiever Award for an Advanced Technology Product, a first place ranking for the most popular computer product in the southwestern region of the PRC and Best Product Award for the country by the China National Micro-computer standards body. 1994 Lenovo was listed on the Hong Kong Stock Exchange, representing that Lenovo has become a large enterprise which integrates research, production and sales. 1997 Lenovo became the PC business market share leader in the PRC. – 131 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. OUR HISTORY AND CORPORATE STRUCTURE Year Events 2000 Our Group officially launched its business diversification strategy and entered into industries other than IT sector. 2001 Our Group started to engage in the venture capital business and the real estate business with the incorporation of Legend Investment and Raycom Real Estate. 2003/2004 The Group entered the field of PE investment in 2003, and incorporated Beijing Hony Investment Counsellor Co., Ltd. in 2004. 2005 Lenovo expanded its business and operations to a global scale through the acquisition of the PC division of IBM. 2008 Lenovo was listed on the Fortune Global 500 for the first time. 2010 Our Group formulated mid-term strategy to further expand its diversified business and enter into consumer and service sectors. 2012 Our Group ventured into the chemicals and energy materials business, the agriculture and food business, the Chinese liquor business, the logistics business and financial services business by incorporating Levima, Joyvio, Funglian, Zeny and Zhengqi, respectively. 2013 The market share of Lenovo’s PC business became No. 1 in the world. 2014 The Group acquired Bybo and started to engage in the dental care business. Lenovo acquired IBM’s x86 server business, and Motorola Mobility from Google to further expand its smartphone business. – 132 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. OUR HISTORY AND CORPORATE STRUCTURE OUR PRINCIPAL SUBSIDIARIES Descriptions of the principal subsidiaries of our Group are set out below by business sector: Strategic Investments IT Lenovo Group Limited (聯想集團有限公司) The predecessor of Lenovo was incorporated as a joint venture in Hong Kong in 1988 by Chinese Academy of Sciences Computer Technology Research Institute New Technology Development Company (中國科學院計算技術研究所新技術發展公司), the predecessor of our Company, Daw Computer Systems Limited (導遠電腦系統有限公司) (which was dissolved in August 2002) and China Technology Investment & Trade (H.K.) Limited (中國技術投資貿易 (香港)有限公司) (formerly known as China Technology Trade (H.K.) Limited (中國技術轉讓 (香港)有限公司)) with an initial share capital of HK$900,000 with each of the partners contributing an equal share. It commenced its business operations on the same date and began as a distributor of computer products in Hong Kong and the PRC. We had acted as the agent of some brands, such as AST, which was first introduced into the PRC market by us in 1988, IBM and HP. In October 1993, Lenovo was incorporated in Hong Kong as part of the reorganization in preparation for the listing of its shares on the Hong Kong Stock Exchange. Lenovo is primarily engaged in the development, manufacturing and marketing of personal technology products and services, which comprise notebook computers, desktop computers, MIDH products, which enable the user to access the Internet from a variety of locations including home, such as smartphones, tablets and smart TVs, and other personal technology products and services such as servers, computer accessories and hardware related services. Other than personal technology products and services, Lenovo is also involved in the sale of non-PC home appliances and other non-PC services. For more information on our information technology business, please refer to the section headed “Business – Strategic Investments – IT Business”. Lenovo’s shares have been listed on the Main Board of the Hong Kong Stock Exchange since February 14, 1994 with the stock code 992 and, as of the Latest Practicable Date, we, directly and indirectly, on an aggregate basis, held 30.56% of Lenovo’s equity interest. Financial Services Zhengqi Anhui Financial Holdings Co., Ltd. (正奇安徽金融控股有限公司) Zhengqi was incorporated as a limited liability company in the PRC on October 10, 2012 with a registered capital of RMB1,500,000,000 and commenced its business operation on the same date. – 133 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. OUR HISTORY AND CORPORATE STRUCTURE Zhengqi is primarily engaged in the business of providing financial services to SMEs. As of the Latest Practicable Date, Zhengqi had a registered capital of RMB2,000,000,000 and was owned as to approximately 92% and 8% by our Company and Tianjin Dexin Enterprise Management Partnership Enterprise (Limited Partnership) (天津德信企業管理合夥企業(有限 合夥)), respectively.