Legend said its year to March 2003 net profit fell 2.7 percent to a slightly less-than-expected 1.02 billion Hong Kong dollars (131 million US dollars), while sales sliiped to 20.23 billion dollars from 20.85 billion, and operating profit dropped to 1.05 billion dollars from 1.097 billion dollars.

"For most IT businesses in China and throughout the world, 2002 was a year of unease," said Legend chairman Liu Chuanzhi, noting that China's IT market as a whole managed only two percent growth.

Liu said "despite the stalling global situtation" the company further consolidated its leading market position.

The results were lower than the 1.03-1.07 billion dollar range forecast by analysts in a survey by financial news service AFX-Asia.

As to the future prospects, Yang Yuanging, Legend president and chief executive officier, said "China's economy is showing strong fundamentals, particularly as the Chinese government is placing great emphasis on informaization, and its pro-active financial policy will foster further growth in the IT market.

"Although the outbreak of severe acute respiratory syndrome (SARS) may cause some distruption in certain Chinese provinces and cities, once the situation is brought under control, the corporate and consumer markets should soon return to normal," Yang said.

SPACE.WIRE