Despite realizing sales increases of 17% year-on-year in its third quarter ending on December 31, the Legend is planning to reorganize its structure. The company has been facing an increasing amount of competition, recently after losing its title as the biggest notebook maker on the Chinese mainland to IBM according to US-based consulting firm Gartner.

Yang Yuanqing, Legend president and chief executive officer, announced on February 18 in a conference call that his company failed to achieve its three-year goal for the 2001-03 period. Legend Group decided to restructure the company and unveiled the plan on February 18. The firm will consist of three key business units: core information products, key telecommunications products, and other products and services including information technology consulting, software outsourcing and network products. Legend is also splitting its business into 18 regional units, instead of the previous seven, to shorten the distance between the company and customers.