On August 13, Lenovo Group announced the first quarter results of fiscal year 20 / 21 as of June 30, 2020, showing that the business volume of the quarter reached 94.6 billion yuan, an increase of 6.7% year-on-year (compared with the same period of the previous year); the pre tax profit reached 2.35 billion yuan, with a year-on-year increase of 38%; and the net profit reached 1.5 billion yuan, with a year-on-year increase of 31%.
Yang Yuanqing, chairman and CEO of Lenovo Group, said in an interview with reporters that the global PC shipment volume in 2019 will exceed 260 million units, and it is expected to reach 300 million units this year. “Looking to the future, we are confident in Lenovo’s intelligent change strategy, the momentum of China’s economic recovery and the prospects of the global digital economy.”
Lenovo Group said that in this fiscal quarter, the epidemic situation stimulated strong demand for home office and distance learning. The PC market did not experience the decline predicted by the industry before, but achieved double-digit growth year-on-year. During the period of
, Lenovo’s traditional strong business, personal computers and intelligent devices, achieved a turnover growth of 10.1% and a pre tax profit growth of 28%. Driven by the accelerated transformation of the digital economy, the data center business, as the “hero behind the curtain” of the online economy, also achieved a turnover growth of nearly 20%.
Yang Yuanqing said that the epidemic has catalyzed new business opportunities such as online education and online office. Last quarter, he was not sure that he was only optimistic, but this quarter is certain that this impact will become a long-term trend.
according to the financial report, due to the dual impact of the epidemic situation and exchange rate fluctuations, Lenovo’s mobile business revenue in the first quarter was 1.093 billion US dollars, down 27% year-on-year. Mobile business accounts for 8% of the group’s total revenue.
Yang Yuanqing explained that the decline in mobile services was a sharp drop in demand in Latin America. The main markets of Lenovo’s mobile business, Latin America and North America, were still affected by the epidemic, which was an irresistible objective factor, but the market share reached its highest level in history. At present, Lenovo’s mobile business ranks fourth in North America, second only to apple, Samsung and LG, and still ranks second in Latin America.
Lenovo Group’s base in China market. In this fiscal quarter, Lenovo’s PC turnover market share and sales market share both achieved year-on-year growth, with the turnover increasing by 16.7% year-on-year, the market share reaching 39.5%, and the year-on-year growth of 1.2%; the sales volume increased by 13.9%, the market share reached 35.8%, and the year-on-year growth of 1.3%. Lenovo PC business continues to lead the market, consolidating and expanding the leading edge. In addition, Lenovo China’s transformation of intelligent IOT has achieved sustained and rapid growth. In the first fiscal quarter, the sales of smart services increased by 41% year on year, and the revenue of smart service business was 1.4 billion yuan.
Liu Junbiao, executive vice president of Lenovo Group and President of China, said that the accelerated construction of new infrastructure and the outbreak of online economy under the new normal of epidemic situation have brought great opportunities to Lenovo China. Liu Jun also revealed that next, Lenovo’s mobile business will have new actions in the Chinese market. It will launch more advanced mobile device products around 5g and other new technologies, and explore new directions of mobile business by expanding the cooperation relationship between operators.