San Francisco - Liu Chuanzhi, chairman of Lenovo Group Ltd and its parent company Legend Holdings, unveiled a five-year-plan in San Francisco on Saturday, which includes Legend's going public in Hong Kong in 2014 and winning the battle against Apple Inc in the domestic market.

As the nation's largest PC manufacturer, Lenovo reported a $648-million gross profit in the third fiscal quarter ended Dec 31, 2010, a 22 percent increase year-on-year. It also took 32.2 percent of the domestic market, its highest share ever, and 10.2 percent of the international market.

"The board is satisfied with Lenovo's performance in this quarter," said Liu, adding that his company has achieved all its targets in terms of volume, revenue, pre-tax income, cost and expense.

"If nothing dramatic happens," Liu disclosed that Legend is planned to go public in Hong Kong in 2014. "We're very optimistic that profits will increase by 30 percent after that year."

Liu said that he believed smart phones and tablet computers would dominate that future market and that anyone losing this battle would not survive.

Lenovo's biggest rival in China is Apple Inc. So far, Apple has opened four stores in Beijing and Shanghai, and has sold millions of iPhones and iPads to Chinese consumers since 2008. In contrast, sales of Lenovo's LePhone lag far behind, around 120,000 units by the end of 2010.

Asked how well Lenovo has prepared for the competition with Apple, Liu said he and his team "will keep a close watch (on Apple)".

Lenovo has also established a new division - the Mobile Internet and Digital Home Division (MIDH) headed by former Lenovo product group executive Liu Jun.

Through MIDH, Lenovo will focus on innovating mobile Internet devices - tablets, smartphones, smart TVs and the digital home, said Liu Chuanzhi.

"We might not be able to set the industry trends, but we'll catch up and follow the trends until we can excel in some specific areas."

He pointed out that Lenovo has a better understanding of the Chinese market and consumers, and therefore, "we can tailor our products and features to meet these consumers' needs", Liu said.

Liu ruled out the possibility that Apple will set the standard and dominate the market in China. The scenario has changed, said Liu.

"Those days are gone when there were only Microsoft and Intel. Today we also have Android. We have the new alliance between Nokia and Microsoft. I think what we're going to see now is a situation that hundreds of flowers can bloom."