China's Lenovo says profitable in 2010

* Rules out dividend fiscal 2009, 2010

* Business focus is on emerging markets, China

* M&A is key strategy for expanding in emerging markets

(Adds details, quotes)

By Judy Wu and Kirby Chien

BEIJING, Feb 10 (Reuters) - Lenovo Group (0992.HK), the world's fourth-largest PC maker, said on Tuesday it would focus on China and other emerging markets and low-cost personal computers as the route back to profitability in 2010.

Chairman Liu ChuanzhiHe forecast further losses this calendar year and ruled out dividends for fiscal 2009 and 2010. Paying dividends from cash reserves would not be appropriate, he said.

"We should see a profit in 2010, and from there the situation will begin to improve," Liu told Reuters in an interview, without specifying in which quarter the company will likely turn the corner.