A loan of 200,000 yuan from the Chinese Academy of Sciences served as the initial capital for Legend, a firm founded in 1984 by Liu Chuanzhi and ten fellow engineers. Operating from a cramped office space in Beijing, the group sought to bridge the gap between abstract scientific research and the practical demands of a emerging market economy.
Early Career and Education
Born in 1944 in Zhenjiang, Liu attended the People's Liberation Army Institute of Telecommunication Engineering, now Xidian University. Assigned to radar studies due to his background, he later worked as an engineer-administrator at the Computer Institute in 1970. During his tenure there, he contributed to the development of the Number 757 mainframe computer while witnessing high-level research projects fail to reach commercial implementation.
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Frustrated by the lack of direct application for his technical work and limited by a modest monthly salary, Liu left the Chinese Academy of Sciences to establish Legend. The enterprise faced significant ideological hurdles, as commerce was frequently viewed with suspicion by the intellectual class. Early attempts at trade, including an ill-fated venture into television imports and digital watches, provided lessons in market dynamics rather than immediate profits.
Market Expansion and Public Listing
The company secured its first major commercial victory by developing a circuit board that allowed IBM computers to process Chinese characters. In 1988, Liu established a Hong Kong subsidiary to expand his reach. By 1994, the company launched an initial public offering in Hong Kong, raising nearly US$30 million. This capital enabled the expansion of sales offices into Europe, North America, and Australia, fundamentally changing the company's scale.
Fast facts
- Born: 1944, Zhenjiang
- Education: Xidian University
- Original company name: Legend
- IPO year: 1994
- Founder of: Lenovo
- Recognition: Pioneer of Reform (2018)
- Political role: National People's Congress deputy
Questions readers ask
What was the initial product that brought Lenovo success?
The company's first major success was a circuit board designed to enable IBM PCs to process Chinese characters.
How did Liu Chuanzhi start his business?
He founded the company in 1984 with ten other engineers using a 200,000 yuan loan from the Chinese Academy of Sciences.
Achievements
- Educated at Xidian University
- Worked as entrepreneur, businessperson and computer scientist
