Latest news with #YangYuanqing
Time of India
22-05-2025
- Business
- Time of India
China's Lenovo posts quarterly profit far short of estimates, shares slide
China's Lenovo , the world's largest personal computer manufacturer, said fourth-quarter profit plunged 64% - a result that was far worse than expected and one that sent its shares sharply lower. The profit slide was mostly due to a fair value loss on warrants but the company was also hurt by the U.S. President Donald Trump's decision in March to double fentanyl-related tariffs on all Chinese imports. "The 20% tariffs announced in March were implemented suddenly and left us no time to prepare. It had a significant impact on our numbers in the last quarter - it's not a small number," Lenovo's CEO Yang Yuanqing said in conference call. Lenovo's shares tumbled 5.4%, underperforming a 1.3% fall in the Hang Seng index. While the U.S. and China have rolled back most of their tariffs levied since April, the 20% tariff remains. Yang told Reuters in an interview that if tariffs impacted costs, the company would raise prices. Lenovo has 30 manufacturing facilities in more than 10 countries, and that its diversified manufacturing bases can help it navigate U.S. tariffs, he added. Net profit for Lenovo, which also manufactures smartphones and offers cloud computing solutions , came in at $90 million, well short of an LSEG consensus estimate of $225.8 million. But overall revenue for the January-March quarter climbed 23% from the same period a year earlier, ahead of analysts' expectations of $15.6 billion. The company's infrastructure solutions group, which includes servers, did particularly well, posting a 64% jump in revenue. Its solutions and services group, which offers cloud-based software for enterprise clients, saw revenue surge 22%.
RTÉ News
22-05-2025
- Business
- RTÉ News
China's Lenovo posts quarterly profit far short of estimate
China's Lenovo, the world's largest personal computer manufacturer, said fourth-quarter profit plunged 64% - a result that was far worse than expected and one that sent its shares sharply lower. The profit slide was mostly due to a fair value loss on warrants but the company was also hurt by US President Donald Trump's decision in March to double fentanyl-related tariffs on all Chinese imports. "The 20% tariffs announced in March were implemented suddenly and left us no time to prepare. It had a significant impact on our numbers in the last quarter - it's not a small number," Lenovo's CEO Yang Yuanqing said in conference call. Lenovo's shares tumbled 5.4%, underperforming a 1.3% fall in the Hang Seng index. While the US and China have rolled back most of their tariffs levied since April, the 20% tariff remains. Yang told Reuters in an interview that if tariffs impacted costs, the company would raise prices. Lenovo has 30 manufacturing facilities in more than 10 countries, and that its diversified manufacturing bases can help it navigate US tariffs, he added. Net profit for Lenovo, which also manufactures smartphones and offers cloud computing solutions, came in at $90m, well short of an LSEG consensus estimate of $225.8m. But overall revenue for the January-March quarter climbed 23% from the same time a year earlier, ahead of analysts' expectations of $15.6 billion. The company's infrastructure solutions group, which includes servers, did particularly well, posting a 64% jump in revenue. Its solutions and services group, which offers cloud-based software for enterprise clients, saw revenue surge 22%.
South China Morning Post
22-05-2025
- Business
- South China Morning Post
Lenovo caught off guard by tariffs even as AI PCs deliver strong annual revenue
Lenovo Group , the world's largest personal computer maker, said it is grappling with an unexpected blow from the latest US-China tariffs, even as robust demand for artificial intelligence (AI) products helped the company deliver strong annual results for the last financial year. The Beijing-based company reported on Thursday that revenue for the year ended March 31 climbed 21 per cent to US$69.1 billion, with net income rising 37 per cent to US$1.4 billion – results that are among the best achieved in the company's history. Chairman and CEO Yang Yuanqing attributed the gains to Lenovo's 'hybrid AI' strategy, which targets both consumer and enterprise markets. But Yang also warned that the decision by the administration of US President Donald Trump to raise tariffs on Chinese goods had caught the company off guard, weighing heavily on its most recent quarter. 'When the 20 per cent tariffs were announced in March, they were implemented so suddenly that we didn't even have time to prepare,' Yang said in a media briefing on Thursday. Those tariffs, implemented on March 4, were not part of the deal between the two countries this month that temporarily suspended certain tariffs for 90 days. 'It had a significant impact on our performance last quarter,' Yang said, describing the hit as a 'pretty big number' that prevented even stronger profit growth. Lenovo's Hong Kong-listed shares fell 5.4 per cent to HK$9.57 on Thursday, reflecting investor concerns over the company's exposure to escalating US-China trade tensions.
Mint
22-05-2025
- Business
- Mint
Lenovo's Shares Sink After PC, AI Hardware Rivals Squeeze Profit
(Bloomberg) -- Lenovo Group Ltd.'s shares fell their most in more than a month after reporting a worse-than-expected 64% drop in earnings, reflecting competitive pressures in the AI server and PC markets. The Chinese company reported net income of $90 million for the March quarter versus projections for more than $200 million, reflecting a loss on derivatives and pricing pressures in a stagnant PC market. Its stock slid as much as 5.4% in Hong Kong, despite a faster-than-anticipated 23% rise in sales to about $17 billion. Lenovo and its rivals are grappling with uncertainty about whether demand for PCs and AI servers will hold up if the global economy wobbles. The Trump administration has initiated trade probes as a precursor to imposing tariffs on a broad range of semiconductors and electronics, threatening to upend the global tech supply chain. For now, the US has exempted semiconductors, mobile phones, computers and other electronics imports from 145% duties applied to China. That announcement was seen as a boon to tech giants like Apple Inc. and Nvidia Corp., but Trump and his advisers quickly said the relief would be short-lived and that separate levies would be placed on chips. 'We definitely are not worried about the tariffs, but we are worried about uncertainty,' Chief Executive Officer Yang Yuanqing told Bloomberg News. 'For the longer term, the PC market is related to the global economy, whether it'll be impacted by tariffs or geopolitical tension.' In PCs, Lenovo cemented its lead over HP Inc. and Dell Technologies Inc. in the first quarter, when it grew worldwide shipments almost 11%, according to IDC. Investors remain focused on AI server demand, given uncertainty about the macroeconomic outlook and sustainability of the artificial intelligence boom. A gradual recovery in the PC market should continue in the current quarter, Yang said. More stories like this are available on
Business Recorder
22-05-2025
- Business
- Business Recorder
China's Lenovo reports 64% profit decline in fourth quarter
BEIJING: China's Lenovo, the world's largest personal computer manufacturer, on Thursday reported a worse-than-expected 64% fall in fourth-quarter profit, which it said was mostly due to a non-cash decline in the value of warrants. Lenovo reported revenue of $16.98 billion for the quarter ended March 31, which exceeded analysts' expectations of $15.6 billion, LSEG data showed. Net profit to the company's owners came in at $90 million, well short of the average analyst estimate of $225.8 million, according to LSEG data. Lenovo launched its first AI-powered PCs in China last May and followed that with a global rollout in September. CEO Yang Yuanqing has projected that AI PCs will account for a quarter of Lenovo's shipments by 2025, potentially reaching 80% by 2027. China's Lenovo Q3 revenue tumbles 24% as PC demand slumps The company has integrated technology from Chinese startup DeepSeek - which has upended the AI sector with its low-cost model - into its devices, including PCs and tablets. Lenovo's infrastructure solutions group, which includes servers, posted a 64% revenue increase in the March quarter compared with the previous year. The solutions and services group, which offers cloud-based software for enterprise clients, reported $2.2 billion in revenue, up 22% from a year earlier. Lenovo's Hong Kong-listed shares dropped 2.08% after the earnings release. They have dipped 1.69% for the year to date.
