Latest news with #YuanqingYang
Forbes
28-05-2025
- Business
- Forbes
Why Lenovo's Adaptability Fuels Its Global Competitive Edge
Lenovo's global footprint shows why adaptability is the new competitive advantage. I wrote about Lenovo's 20th anniversary of buying IBM's PC business a few weeks back. I shared the history of the deal and how surprised I and many others were about how successful Lenovo has integrated IBM's PC operation into its own and helped it become the #1 PC vendor today. It has become an important global tech supplier of not only PCs but also servers and a broad range of enterprise services. However, as I reflect on Lenovo's stellar performance, I believe there is an even bigger story behind the company's success. When I first joined Creative Strategies in 1981, some of my early projects for PC vendors focused on sourcing components and outsourcing some aspects of manufacturing. At that time, both tasks were pretty straightforward. PC manufacturing volumes were small, and most could be done in the U.S., even if many components came from other parts of the world. But today, manufacturing revolves around a worldwide supply chain and factories on most all continents. Today, as geopolitical tensions rapidly reshape global supply chains, Lenovo has quietly demonstrated what strategic foresight looks like in a turbulent era. While the PC market grapples with declining indices and unpredictable tariffs, Lenovo is charting a different course—one built not on retreat but on reach. CEO Yuanqing Yang's comments this quarter reflect a core belief in Lenovo's DNA: adaptability. In the past, I have personally spoken with Mr. Yang about his strategy for the company. Early on, he stressed to me that Lenovo needed to be agile and able to adapt. This philosophy has served them well and shows how his and his team's foresight has helped them grow into a viable international tech powerhouse. With an 11-country manufacturing strategy, the company has effectively inoculated itself against regional disruptions. While others scramble to shift operations or suspend shipments altogether, Lenovo is executing a playbook years in the making. The results? A standout year — with revenue and net income up 21% and 36%, respectively, even as the broader S&P Technology Hardware Index slumped more than 5% year-to-date. The key insight here isn't just logistics — it's about Lenovo's operating philosophy. Rather than abandoning China, the company maintains its manufacturing presence there, recognizing the long-term efficiencies and infrastructure advantages. This balance — between diversification and rooted expertise — enables Lenovo to absorb a $15 million tariff impact without blinking. At the same time, Lenovo expanded its manufacturing footprint to ten other countries, which helped bolster its ability to meet the worldwide demand for its products and services. Another company saw trouble with manufacturing in China as early as 2017 and began shifting much of its manufacturing to Viet Nam. Dell has also applied this adaptability and diversification strategy to its business and is now, like Lenovo, more prepared to weather current tariff problems. Lenovo is showing the global marketplace that in a world defined by trade uncertainty and rising nationalism, the best supply chain strategy may be less about placing a bet on one country and more about being everywhere, all at once. It's not just a hedge—it's a blueprint for long-term resilience in a fragmented global economy. This manufacturing strategy is a critical point. Depending on only one country as the leading manufacturer of a company's goods, especially given today's political climate and unpredictable leadership at any time now or in the future, the need for multiple manufacturing partners in many countries has become imperative. No matter the product, companies can no longer rely exclusively on manufacturing in a single country. To remain resilient, they must design flexible strategies that anticipate an increasingly unpredictable global political and economic environment. If companies do that, they will be on a better footing to navigate a global supply chain that allows them to adapt to any governmental or economic headwinds in the future. Disclosure: Lenovo and Dell subscribe to Creative Strategies research reports along with many other high tech companies around the world.
Business Upturn
22-05-2025
- Business
- Business Upturn
Lenovo Group: Q4 and Full Year Financial Results 2024/25
By Business Wire Published on May 22, 2025, 10:12 IST Hong Kong: Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries ('the Group'), today announced Q4 and full year results for the fiscal year 2024/25, reporting significant increases in overall group revenue and profit. For the full year, revenue grew 21% year-on-year to US$69.1 billion, marking the Group's second-highest annual revenue in its history. Net income was up 36% year-on-year to US$1.4 billion on a non-Hong Kong Financial Reporting Standards (non-HKFRS[1]) basis. The Group's diversified growth engines continue to accelerate, with non-PC revenue mix up nearly five points year-on-year to 47%. All business groups were healthy and strong and met their strategic intent and financial goals, and all sales geographies gained double-digit revenue growth year-on-year, reflecting the strength of the Group's diversified businesses and resilient global footprint. The results were not only driven by the Group's focus on executing a clear strategy, but also its end-to-end integrated global operations (design, demand forecasting, procurement, manufacturing, marketing, sales, and services), ODM+ manufacturing model, and global resources/local delivery model. Over the past 20 years of operating a global business, Lenovo has established a manufacturing footprint that boasts 30+ manufacturing sites (either in-house or outsourced) in 11 different markets around the world. The combination of these gives the Group maximum flexibility and resilience to navigate through uncertainties and be more adaptive to the market conditions. Lenovo continues to prioritize investment in innovation, with R&D expenses up 13% year-on-year to US$2.3 billion. The past year saw several key announcements, investments, and milestones from the Group as part of its hybrid AI strategy. These include the launch of AI PCs where Lenovo is now number one globally in the Windows AI PC category; the launch of the first foldable phone with Moto AI; hypergrowth in the AI server business; the creation of core solutions and services capabilities with Lenovo Hybrid AI Advantage, and most recently the launch of the Group's first personal and enterprise AI super agents at its Tech World event in Shanghai. Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, together with its globally balanced business and a flexible, resilient supply chain will not only maintain but also enhance its market competitiveness. Lenovo's Board of Directors declared a final dividend of 3.9 US cents or 30.5 HK cents per share for the fiscal year ended March 31, 2025. Chairman and CEO quote – Yuanqing Yang: 'This has been one of our best years yet, even in the face of significant macroeconomic uncertainty. We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster. Our strategy to focus on hybrid AI has driven meaningful progress in both personal and enterprise AI, laying a strong foundation for leadership in this AI era. With 20 years of leading a global business and navigating challenges, I'm confident that our operational excellence and continued investment in innovation will not only sustain but strengthen our competitiveness.' Financial Highlights: FY 24/25 US$ millions FY 23/24 US$ millions Change Q4 FY24/25 US$ millions Q4 FY23/24 US$ millions Change Group Revenue 69,077 56,864 21% 16,984 13,833 23% Pre-tax income 1,481 1,365 8% 178 309 (42)% Net Income (profit attributable to equity holders) 1,384 1,011 37% 90 248 (64)% Net Income (profit attributable to equity holders – non-HKFRS)[1] 1,441 1,060 36% 278 223 25% Basic earnings per share (US cents) 11.30 8.41 2.89 0.73 2.02 (1.29) Q4 FY24/25 Group Performance: Revenue and non-HKFRS[1] net income increase over 20%, double-digit revenue year-on-year growth across all businesses Group revenue grew 23% year-on-year to US$17 billion, with double-digit year-on-year revenue growth across all businesses. Net income was up 25% year-on-year on a non-HKFRS [1] basis to US$278 million. basis to US$278 million. The Intelligent Devices Group further enlarged its PC market leadership and expanded the gap to the number two player year-on-year by a further point. At the same time, smartphone revenue outgrew the market by 12 points and its global smartphone ranking by revenue is now number four in all markets outside of China. The Infrastructure Solutions Group achieved profitability for the 2 nd consecutive quarter, with revenue hypergrowth of more than 60% year-on-year. consecutive quarter, with revenue hypergrowth of more than 60% year-on-year. The Solutions and Services Group delivered 18% revenue growth year-on year and a record operating margin of 22.7%. Full Year performance: Intelligent Devices Group (IDG): Market leadership strengthened, winning in personal AI FY24/25 performance: Overall IDG revenue grew 13% year-on-year to US$50.5 billion, with an operating margin in the historically high range of more than 7%. PCs expanded their market leadership, enlarging the gap to the number two player by almost 1 point to 3.6 points, and maintained industry-leading profitability. AI PCs exceeded the volume target for the year, with Lenovo now leading globally in the Windows AI PC category. Smartphone revenue reached its highest point since the acquisition of Motorola Mobility, with hypergrowth of 27% year-on-year. There was robust growth in Asia Pacific and EMEA markets, complementing the traditional strongholds of Latin America and North America. The tablet business achieved double-digit year-on-year growth in sales volume. Innovative form factors were launched throughout FY24/25 across Lenovo's AI PC and smartphone portfolio, including the ThinkBook Plus Gen 6 with a rollable display, the Legion Go S handheld gaming console, and the ultra-premium ThinkPad and Yoga Aura Editions. Motorola expanded its leadership in foldables with the latest motorola razr, now enhanced with moto AI capabilities. Looking ahead, IDG will continue to build an AI-driven applications ecosystem to deliver seamless cross-device, cross-ecosystem experiences, as well as further develop the AI super agents that recently launched at the Group's Tech World event in Shanghai. Infrastructure Solutions Group (ISG): Hypergrowth, profitable in the 2nd half of the year, driving hybrid infrastructure FY24/25 performance: ISG saw a year of hyper-growth with revenue up 63% year-on-year to a record US$14.5 billion. Operating margin was significantly improved and ISG broke even for the 2 nd half of the fiscal year. half of the fiscal year. The Cloud Services Provider (CSP) business continued to scale through the year with self-sustaining profitability. The Enterprise and SMB (E/SMB) business had strong momentum with revenue up 20% year-on-year to a record high. The AI server business also achieved hypergrowth thanks to the rising demand for AI infrastructure, with Lenovo's industry-leading Neptune™ liquid cooling solutions as a key force behind this rapid growth. Looking ahead, ISG will continue executing its CSP and E/SMB strategy, simplify its product portfolio, strengthen its go-to-market capabilities, and enhance operational resilience to drive steady, balanced growth across all geographies and sustainable profitability. Solutions and Services Group (SSG): High margin and high growth transformation engine, unleashing hybrid AI Advantage FY24/25 performance: SSG further solidified its role as the Group's transformation engine, with revenue growing 13% year-on-year to US$8.5 billion, with an operating margin of 21.1%. The support services business continued its steady growth, elevating the hardware user experience. The solutions and 'as-a-service' business grew even faster, now accounting for nearly 60% of SSG's revenue, with AI offerings in particular generating momentum. Looking ahead, SSG will continue to build capabilities within the Lenovo Hybrid AI Advantage framework, while also expanding and deepening its portfolio of enterprise solutions. ESG highlights Lenovo made progress on its environmental, social and governance commitments in FY24/25 and is on-track to reach its 2030 emissions reduction goals, aligned to the Science Based Targets initiative. Lenovo is proud to have received global recognitions in the past year such as the Gold Award in the Most Sustainable Companies/Organizations category of the Best Corporate Governance and ESG Awards organized by the HKICPA as well as the Platinum Medal by EcoVadis, placing Lenovo in the top 1% of all companies rated by EcoVadis worldwide. Lenovo also received AAA recognition in MSCI's ESG Assessment Ratings and A-list recognition from CDP for Climate Change Leadership (A) and Water (A-). Embracing people of all backgrounds and abilities is critical to Lenovo's vision of providing smarter technology for all. In 2024, Lenovo was honored as a 'Best Workplace for Disability Inclusion' for the fourth year in the US, with expansion to Brazil and the United Kingdom. As part of Lenovo's focus on providing Smarter AI for All, the company has adopted governing principles that bolster the responsible, ethical, and safe development, deployment, and utilization of AI. Lenovo has fortified its internal governance by committing to public initiatives like the European Commission's AI Pact. More details on the company's progress will be released in its annual ESG report published at the end of June. [1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, gain on deemed disposal of a subsidiary, impairment and write-off of intangible assets, one-time income tax credit; restructuring and other charges, gain on remeasurement of a written put option liability, fair value change on derivative financial liabilities relating to warrants, and notional interest of convertible bonds; and the corresponding income tax effects, if any. About Lenovo Lenovo is a US$69 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world's largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo's continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit and read about the latest news via our StoryHub. LENOVO GROUP FINANCIAL SUMMARY For the quarter and year ended March 31, 2025 (in US$ millions, except per share data) Q4 FY24/25 Q4 FY23/24 Y/Y CHG FY24/25 FY23/24 Y/Y CHG Revenue 16,984 13,833 23% 69,077 56,864 21% Gross profit 2,783 2,428 15% 11,098 9,803 13% Gross profit margin 16.4% 17.6% (1.2) pts 16.1% 17.2% (1.1) pts Operating expenses (2,452) (1,939) 26% (8,934) (7,797) 15% R&D expenses (included in operating expenses) (644) (532) 21% (2,288) (2,028) 13% Expenses–to-revenue ratio 14.4% 14.0% 0.4 pts 12.9% 13.7% (0.8) pts Operating profit 331 489 (32)% 2,164 2,006 8% Other non-operating income/(expenses) – net (153) (180) (15)% (683) (641) 7% Pre-tax income 178 309 (42)% 1,481 1,365 8% Taxation (54) (56) (4)% (19) (263) (93)% Profit for the period/year 124 253 (51)% 1,462 1,102 33% Non-controlling interests (34) (5) 551% (78) (91) (16)% Profit attributable to equity holders 90 248 (64)% 1,384 1,011 37% Profit attributable to equity holders – non-HKFRS[1] 278 223 25% 1,441 1,060 36% Earnings per share (US cents)Basic Diluted View source version on Disclaimer: The above press release comes to you under an arrangement with Business Wire. Business Upturn takes no editorial responsibility for the same.
Yahoo
22-05-2025
- Business
- Yahoo
Lenovo Group: Q4 and Full Year Financial Results 2024/25
Lenovo delivers strong full-year performance – innovation and operational excellence further strengthen competitiveness HONG KONG, May 22, 2025--(BUSINESS WIRE)--Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries ('the Group'), today announced Q4 and full year results for the fiscal year 2024/25, reporting significant increases in overall group revenue and profit. For the full year, revenue grew 21% year-on-year to US$69.1 billion, marking the Group's second-highest annual revenue in its history. Net income was up 36% year-on-year to US$1.4 billion on a non-Hong Kong Financial Reporting Standards (non-HKFRS[1]) basis. The Group's diversified growth engines continue to accelerate, with non-PC revenue mix up nearly five points year-on-year to 47%. All business groups were healthy and strong and met their strategic intent and financial goals, and all sales geographies gained double-digit revenue growth year-on-year, reflecting the strength of the Group's diversified businesses and resilient global footprint. The results were not only driven by the Group's focus on executing a clear strategy, but also its end-to-end integrated global operations (design, demand forecasting, procurement, manufacturing, marketing, sales, and services), ODM+ manufacturing model, and global resources/local delivery model. Over the past 20 years of operating a global business, Lenovo has established a manufacturing footprint that boasts 30+ manufacturing sites (either in-house or outsourced) in 11 different markets around the world. The combination of these gives the Group maximum flexibility and resilience to navigate through uncertainties and be more adaptive to the market conditions. Lenovo continues to prioritize investment in innovation, with R&D expenses up 13% year-on-year to US$2.3 billion. The past year saw several key announcements, investments, and milestones from the Group as part of its hybrid AI strategy. These include the launch of AI PCs where Lenovo is now number one globally in the Windows AI PC category; the launch of the first foldable phone with Moto AI; hypergrowth in the AI server business; the creation of core solutions and services capabilities with Lenovo Hybrid AI Advantage, and most recently the launch of the Group's first personal and enterprise AI super agents at its Tech World event in Shanghai. Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, together with its globally balanced business and a flexible, resilient supply chain will not only maintain but also enhance its market competitiveness. Lenovo's Board of Directors declared a final dividend of 3.9 US cents or 30.5 HK cents per share for the fiscal year ended March 31, 2025. Chairman and CEO quote – Yuanqing Yang: "This has been one of our best years yet, even in the face of significant macroeconomic uncertainty. We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster. Our strategy to focus on hybrid AI has driven meaningful progress in both personal and enterprise AI, laying a strong foundation for leadership in this AI era. With 20 years of leading a global business and navigating challenges, I'm confident that our operational excellence and continued investment in innovation will not only sustain but strengthen our competitiveness." Financial Highlights: FY 24/25 US$ millions FY 23/24 US$ millions Change Q4 FY24/25 US$ millions Q4 FY23/24 US$ millions Change Group Revenue 69,077 56,864 21% 16,984 13,833 23% Pre-tax income 1,481 1,365 8% 178 309 (42)% Net Income (profit attributable to equity holders) 1,384 1,011 37% 90 248 (64)% Net Income (profit attributable to equity holders – non-HKFRS) [1] 1,441 1,060 36% 278 223 25% Basic earnings per share (US cents) 11.30 8.41 2.89 0.73 2.02 (1.29) Q4 FY24/25 Group Performance: Revenue and non-HKFRS[1] net income increase over 20%, double-digit revenue year-on-year growth across all businesses Group revenue grew 23% year-on-year to US$17 billion, with double-digit year-on-year revenue growth across all businesses. Net income was up 25% year-on-year on a non-HKFRS[1] basis to US$278 million. The Intelligent Devices Group further enlarged its PC market leadership and expanded the gap to the number two player year-on-year by a further point. At the same time, smartphone revenue outgrew the market by 12 points and its global smartphone ranking by revenue is now number four in all markets outside of China. The Infrastructure Solutions Group achieved profitability for the 2nd consecutive quarter, with revenue hypergrowth of more than 60% year-on-year. The Solutions and Services Group delivered 18% revenue growth year-on year and a record operating margin of 22.7%. Full Year performance: Intelligent Devices Group (IDG): Market leadership strengthened, winning in personal AI FY24/25 performance: Overall IDG revenue grew 13% year-on-year to US$50.5 billion, with an operating margin in the historically high range of more than 7%. PCs expanded their market leadership, enlarging the gap to the number two player by almost 1 point to 3.6 points, and maintained industry-leading profitability. AI PCs exceeded the volume target for the year, with Lenovo now leading globally in the Windows AI PC category. Smartphone revenue reached its highest point since the acquisition of Motorola Mobility, with hypergrowth of 27% year-on-year. There was robust growth in Asia Pacific and EMEA markets, complementing the traditional strongholds of Latin America and North America. The tablet business achieved double-digit year-on-year growth in sales volume. Innovative form factors were launched throughout FY24/25 across Lenovo's AI PC and smartphone portfolio, including the ThinkBook Plus Gen 6 with a rollable display, the Legion Go S handheld gaming console, and the ultra-premium ThinkPad and Yoga Aura Editions. Motorola expanded its leadership in foldables with the latest motorola razr, now enhanced with moto AI capabilities. Looking ahead, IDG will continue to build an AI-driven applications ecosystem to deliver seamless cross-device, cross-ecosystem experiences, as well as further develop the AI super agents that recently launched at the Group's Tech World event in Shanghai. Infrastructure Solutions Group (ISG): Hypergrowth, profitable in the 2nd half of the year, driving hybrid infrastructure FY24/25 performance: ISG saw a year of hyper-growth with revenue up 63% year-on-year to a record US$14.5 billion. Operating margin was significantly improved and ISG broke even for the 2nd half of the fiscal year. The Cloud Services Provider (CSP) business continued to scale through the year with self-sustaining profitability. The Enterprise and SMB (E/SMB) business had strong momentum with revenue up 20% year-on-year to a record high. The AI server business also achieved hypergrowth thanks to the rising demand for AI infrastructure, with Lenovo's industry-leading Neptune™ liquid cooling solutions as a key force behind this rapid growth. Looking ahead, ISG will continue executing its CSP and E/SMB strategy, simplify its product portfolio, strengthen its go-to-market capabilities, and enhance operational resilience to drive steady, balanced growth across all geographies and sustainable profitability. Solutions and Services Group (SSG): High margin and high growth transformation engine, unleashing hybrid AI Advantage FY24/25 performance: SSG further solidified its role as the Group's transformation engine, with revenue growing 13% year-on-year to US$8.5 billion, with an operating margin of 21.1%. The support services business continued its steady growth, elevating the hardware user experience. The solutions and 'as-a-service' business grew even faster, now accounting for nearly 60% of SSG's revenue, with AI offerings in particular generating momentum. Looking ahead, SSG will continue to build capabilities within the Lenovo Hybrid AI Advantage framework, while also expanding and deepening its portfolio of enterprise solutions. ESG highlights Lenovo made progress on its environmental, social and governance commitments in FY24/25 and is on-track to reach its 2030 emissions reduction goals, aligned to the Science Based Targets initiative. Lenovo is proud to have received global recognitions in the past year such as the Gold Award in the Most Sustainable Companies/Organizations category of the Best Corporate Governance and ESG Awards organized by the HKICPA as well as the Platinum Medal by EcoVadis, placing Lenovo in the top 1% of all companies rated by EcoVadis worldwide. Lenovo also received AAA recognition in MSCI's ESG Assessment Ratings and A-list recognition from CDP for Climate Change Leadership (A) and Water (A-). Embracing people of all backgrounds and abilities is critical to Lenovo's vision of providing smarter technology for all. In 2024, Lenovo was honored as a "Best Workplace for Disability Inclusion" for the fourth year in the US, with expansion to Brazil and the United Kingdom. As part of Lenovo's focus on providing Smarter AI for All, the company has adopted governing principles that bolster the responsible, ethical, and safe development, deployment, and utilization of AI. Lenovo has fortified its internal governance by committing to public initiatives like the European Commission's AI Pact. More details on the company's progress will be released in its annual ESG report published at the end of June. [1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, gain on deemed disposal of a subsidiary, impairment and write-off of intangible assets, one-time income tax credit; restructuring and other charges, gain on remeasurement of a written put option liability, fair value change on derivative financial liabilities relating to warrants, and notional interest of convertible bonds; and the corresponding income tax effects, if any. About Lenovo Lenovo is a US$69 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world's largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo's continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit and read about the latest news via our StoryHub. LENOVO GROUP FINANCIAL SUMMARY For the quarter and year ended March 31, 2025 (in US$ millions, except per share data) Q4 FY24/25 Q4 FY23/24 Y/Y CHG FY24/25 FY23/24 Y/Y CHG Revenue 16,984 13,833 23% 69,077 56,864 21% Gross profit 2,783 2,428 15% 11,098 9,803 13% Gross profit margin 16.4% 17.6% (1.2) pts 16.1% 17.2% (1.1) pts Operating expenses (2,452) (1,939) 26% (8,934) (7,797) 15% R&D expenses(included in operating expenses) (644) (532) 21% (2,288) (2,028) 13% Expenses-to-revenue ratio 14.4% 14.0% 0.4 pts 12.9% 13.7% (0.8) pts Operating profit 331 489 (32)% 2,164 2,006 8% Other non-operating income/(expenses) – net (153) (180) (15)% (683) (641) 7% Pre-tax income 178 309 (42)% 1,481 1,365 8% Taxation (54) (56) (4)% (19) (263) (93)% Profit for the period/year 124 253 (51)% 1,462 1,102 33% Non-controlling interests (34) (5) 551% (78) (91) (16)% Profit attributable to equity holders 90 248 (64)% 1,384 1,011 37% Profit attributable to equity holders – non-HKFRS[1] 278 223 25% 1,441 1,060 36% Earnings per share (US cents)BasicDiluted 0.73 0.71 2.02 1.95 (1.29) (1.24) 11.30 10.62 8.41 8.05 2.89 2.57 View source version on Contacts Press Contacts Hong Kong – Angela Lee, angelalee@ +852 2516 4810London – Charlotte West, cwest@ +44 7825 605720Zeno Group - LenovoWWcorp@
Business Wire
22-05-2025
- Business
- Business Wire
Lenovo Group: Q4 and Full Year Financial Results 2024/25
HONG KONG--(BUSINESS WIRE)-- Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries ('the Group'), today announced Q4 and full year results for the fiscal year 2024/25, reporting significant increases in overall group revenue and profit. For the full year, revenue grew 21% year-on-year to US$69.1 billion, marking the Group's second-highest annual revenue in its history. Net income was up 36% year-on-year to US$1.4 billion on a non-Hong Kong Financial Reporting Standards (non-HKFRS [1]) basis. The Group's diversified growth engines continue to accelerate, with non-PC revenue mix up nearly five points year-on-year to 47%. All business groups were healthy and strong and met their strategic intent and financial goals, and all sales geographies gained double-digit revenue growth year-on-year, reflecting the strength of the Group's diversified businesses and resilient global footprint. Lenovo delivers strong full-year performance – innovation and operational excellence further strengthen competitiveness Share The results were not only driven by the Group's focus on executing a clear strategy, but also its end-to-end integrated global operations (design, demand forecasting, procurement, manufacturing, marketing, sales, and services), ODM+ manufacturing model, and global resources/local delivery model. Over the past 20 years of operating a global business, Lenovo has established a manufacturing footprint that boasts 30+ manufacturing sites (either in-house or outsourced) in 11 different markets around the world. The combination of these gives the Group maximum flexibility and resilience to navigate through uncertainties and be more adaptive to the market conditions. Lenovo continues to prioritize investment in innovation, with R&D expenses up 13% year-on-year to US$2.3 billion. The past year saw several key announcements, investments, and milestones from the Group as part of its hybrid AI strategy. These include the launch of AI PCs where Lenovo is now number one globally in the Windows AI PC category; the launch of the first foldable phone with Moto AI; hypergrowth in the AI server business; the creation of core solutions and services capabilities with Lenovo Hybrid AI Advantage, and most recently the launch of the Group's first personal and enterprise AI super agents at its Tech World event in Shanghai. Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, together with its globally balanced business and a flexible, resilient supply chain will not only maintain but also enhance its market competitiveness. Lenovo's Board of Directors declared a final dividend of 3.9 US cents or 30.5 HK cents per share for the fiscal year ended March 31, 2025. Chairman and CEO quote – Yuanqing Yang: 'This has been one of our best years yet, even in the face of significant macroeconomic uncertainty. We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster. Our strategy to focus on hybrid AI has driven meaningful progress in both personal and enterprise AI, laying a strong foundation for leadership in this AI era. With 20 years of leading a global business and navigating challenges, I'm confident that our operational excellence and continued investment in innovation will not only sustain but strengthen our competitiveness.' Financial Highlights: Q4 FY24/25 Group Performance: Revenue and non-HKFRS [1] net income increase over 20%, double-digit revenue year-on-year growth across all businesses Group revenue grew 23% year-on-year to US$17 billion, with double-digit year-on-year revenue growth across all businesses. Net income was up 25% year-on-year on a non-HKFRS [1] basis to US$278 million. The Intelligent Devices Group further enlarged its PC market leadership and expanded the gap to the number two player year-on-year by a further point. At the same time, smartphone revenue outgrew the market by 12 points and its global smartphone ranking by revenue is now number four in all markets outside of China. The Infrastructure Solutions Group achieved profitability for the 2 nd consecutive quarter, with revenue hypergrowth of more than 60% year-on-year. The Solutions and Services Group delivered 18% revenue growth year-on year and a record operating margin of 22.7%. Full Year performance: Intelligent Devices Group (IDG): Market leadership strengthened, winning in personal AI FY24/25 performance: Overall IDG revenue grew 13% year-on-year to US$50.5 billion, with an operating margin in the historically high range of more than 7%. PCs expanded their market leadership, enlarging the gap to the number two player by almost 1 point to 3.6 points, and maintained industry-leading profitability. AI PCs exceeded the volume target for the year, with Lenovo now leading globally in the Windows AI PC category. Smartphone revenue reached its highest point since the acquisition of Motorola Mobility, with hypergrowth of 27% year-on-year. There was robust growth in Asia Pacific and EMEA markets, complementing the traditional strongholds of Latin America and North America. The tablet business achieved double-digit year-on-year growth in sales volume. Innovative form factors were launched throughout FY24/25 across Lenovo's AI PC and smartphone portfolio, including the ThinkBook Plus Gen 6 with a rollable display, the Legion Go S handheld gaming console, and the ultra-premium ThinkPad and Yoga Aura Editions. Motorola expanded its leadership in foldables with the latest motorola razr, now enhanced with moto AI capabilities. Looking ahead, IDG will continue to build an AI-driven applications ecosystem to deliver seamless cross-device, cross-ecosystem experiences, as well as further develop the AI super agents that recently launched at the Group's Tech World event in Shanghai. Infrastructure Solutions Group (ISG): Hypergrowth, profitable in the 2 nd half of the year, driving hybrid infrastructure FY24/25 performance: ISG saw a year of hyper-growth with revenue up 63% year-on-year to a record US$14.5 billion. Operating margin was significantly improved and ISG broke even for the 2 nd half of the fiscal year. The Cloud Services Provider (CSP) business continued to scale through the year with self-sustaining profitability. The Enterprise and SMB (E/SMB) business had strong momentum with revenue up 20% year-on-year to a record high. The AI server business also achieved hypergrowth thanks to the rising demand for AI infrastructure, with Lenovo's industry-leading Neptune™ liquid cooling solutions as a key force behind this rapid growth. Looking ahead, ISG will continue executing its CSP and E/SMB strategy, simplify its product portfolio, strengthen its go-to-market capabilities, and enhance operational resilience to drive steady, balanced growth across all geographies and sustainable profitability. Solutions and Services Group (SSG): High margin and high growth transformation engine, unleashing hybrid AI Advantage FY24/25 performance: SSG further solidified its role as the Group's transformation engine, with revenue growing 13% year-on-year to US$8.5 billion, with an operating margin of 21.1%. The support services business continued its steady growth, elevating the hardware user experience. The solutions and 'as-a-service' business grew even faster, now accounting for nearly 60% of SSG's revenue, with AI offerings in particular generating momentum. Looking ahead, SSG will continue to build capabilities within the Lenovo Hybrid AI Advantage framework, while also expanding and deepening its portfolio of enterprise solutions. ESG highlights Lenovo made progress on its environmental, social and governance commitments in FY24/25 and is on-track to reach its 2030 emissions reduction goals, aligned to the Science Based Targets initiative. Lenovo is proud to have received global recognitions in the past year such as the Gold Award in the Most Sustainable Companies/Organizations category of the Best Corporate Governance and ESG Awards organized by the HKICPA as well as the Platinum Medal by EcoVadis, placing Lenovo in the top 1% of all companies rated by EcoVadis worldwide. Lenovo also received AAA recognition in MSCI's ESG Assessment Ratings and A-list recognition from CDP for Climate Change Leadership (A) and Water (A-). Embracing people of all backgrounds and abilities is critical to Lenovo's vision of providing smarter technology for all. In 2024, Lenovo was honored as a 'Best Workplace for Disability Inclusion' for the fourth year in the US, with expansion to Brazil and the United Kingdom. As part of Lenovo's focus on providing Smarter AI for All, the company has adopted governing principles that bolster the responsible, ethical, and safe development, deployment, and utilization of AI. Lenovo has fortified its internal governance by committing to public initiatives like the European Commission's AI Pact. More details on the company's progress will be released in its annual ESG report published at the end of June. [1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, gain on deemed disposal of a subsidiary, impairment and write-off of intangible assets, one-time income tax credit; restructuring and other charges, gain on remeasurement of a written put option liability, fair value change on derivative financial liabilities relating to warrants, and notional interest of convertible bonds; and the corresponding income tax effects, if any. About Lenovo Lenovo is a US$69 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world's largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo's continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit and read about the latest news via our StoryHub.
Channel Post MEA
26-03-2025
- Business
- Channel Post MEA
Lenovo And NVIDIA Unveil New Hybrid AI Advantage
At NVIDIA GTC, Lenovo recently unveiled new Lenovo Hybrid AI Advantage with NVIDIA solutions designed to accelerate AI adoption and boost business productivity by fast-tracking agentic AI that can reason, plan and take action to reach goals faster. The validated, full-stack AI solutions enable enterprises to quickly build and deploy AI agents for a broad range of high-demand use cases, increasing productivity, agility and trust while accelerating the next wave of AI reasoning for the new era of agentic AI. The AI solutions combine Lenovo's full-stack AI portfolio and ready-to-customize use cases with new platform options that will support the latest NVIDIA Blackwell Ultra platform , NVIDIA RTX PRO 6000 Blackwell Server Edition GPU s, and networking innovations to empower organizations everywhere to accelerate applications, such as AI reasoning, agentic AI and real-time video generation. 'Lenovo continues to drive smarter AI for all, bringing together AI models, data and computing power – running on devices, edge, and cloud, and connected with network- to deliver AI solutions that empower human innovation and enable productivity gains,' said Lenovo Chairman and CEO Yuanqing Yang. 'Lenovo Hybrid AI Advantage with NVIDIA integrates cutting-edge services and the next evolution of Blackwell accelerated infrastructure to help enterprises easily scale agentic AI across private and public AI models that deliver substantial benefits in effectiveness, cost, efficiency, security, accessibility and customization.' 'AI agents that can reason and adapt are redefining how we work,' said NVIDIA founder and CEO Jensen Huang. 'NVIDIA and Lenovo are providing the essential infrastructure to power AI inference and reasoning at scale—bringing generative and agentic AI from research labs into real-world enterprise applications.' Hybrid AI Defines the Next Era and Fuels Agentic AI Data exists everywhere – in manufacturing, retail, banking, healthcare business locations, enterprise data centers and in the public domain. Hybrid infrastructure allows data to be collected, stored, processed, and then fed into enterprise AI models for training in the hybrid cloud, and provides inferencing at the edge or on devices with training models. The new offerings leverage Lenovo's leadership in hybrid infrastructure and the recently announced Lenovo Hybrid AI Advantage with NVIDIA to efficiently scale agentic AI across business locations using a factory-type approach that turns data intelligence from everywhere into transformational outcomes. Fully Validated and Tested Agentic AI Use Cases The Lenovo Hybrid AI Advantage with NVIDIA framework includes the Lenovo AI Library, which consists of a portfolio of customized, tested and proven use cases empowering teams to be more productive and deliver AI. Agentic AI can be uniquely accessed on personal devices, workstations, and data centers across enterprise locations and enable ROI in key areas, such as: Content Generation – Automating content creation up to 8x faster, enhancing quality, and personalizing customer interactions.1 Customer Service – Improving customer service efficiency by 50% with reduced response times, automating chatbot interactions, and reducing handling times by 20% 2 Knowledge Assistants – Breaking down data silos, enhancing enterprise knowledge sharing, and automating workflows, such as faster contract reviews. For legal teams, for example, this has boosted productivity by up to 80% and enhanced accuracy by 45%. 3 At NVIDIA GTC, Lenovo debuted the Lenovo AI Knowledge Assistant, a digital human assistant that engaged in real-time conversation with attendees to transform their event experiences and navigation. Powered by the Lenovo agentic AI platform , the solution enables organizations to rapidly customize Lenovo AI Library use cases and operationalize new AI agents and assistants within weeks. The demo was customized using the digital human NVIDIA AI Blueprint and NVIDIA NIM™ microservices , running on a Lenovo PX ThinkStation . Attendees used natural voice and language to interact with the AI assistant about relevant event details, maps, schedules and meeting locations, maximizing their time and optimizing navigation. The demo brings to life how Lenovo's tested and proven solutions can help businesses get customized agentic AI up and running faster, connecting and collaborating with customers and employees on a whole new level to improve outcomes and experiences. The Lenovo agentic AI platform, the industry's most complete on-prem agentic AI solution, simplifies deployment so customers can scale agentic AI across personal, enterprise, and public environments to automate workflows, boost productivity, and accelerate decision-making. Fully integrated with the NVIDIA AI Enterprise software platform , it includes essential software toolkits, advanced data tools, pre-trained models, and automated deployment features. Lenovo AI services and experts provide guidance to streamline adoption while ensuring AI delivers real value. The platform also prioritizes security and trust with a Responsible AI framework and a GenAIOps dashboard for centralized AI management, performance monitoring, and bias detection. Enterprise-Ready Hybrid AI Factory for Scalable Growth As the world transitions to accelerated computing for AI workloads, Lenovo is helping businesses quickly build, scale and operate their own AI factories — high-performance, scalable and protected environments for delivering trusted AI solutions. These new platforms help organizations efficiently build, scale and integrate agentic AI across business locations using validated designs that support multiple workloads with standardized, modular, hybrid deployment options. The factories simplify AI training, inferencing, and deployment—whether on-premises, in the cloud, or at the edge. Delivering full-stack data center infrastructure that includes workstations, servers, networking, storage, partner solutions and services, the hybrid AI factory platforms are built with Lenovo Validated Designs based on NVIDIA Enterprise Reference Architectures and NVIDIA-Certified Lenovo ThinkSystem s ervers. The factory options include the Lenovo ThinkSystem SR675, 680, 685 servers and storage solutions using NVIDIA Hopper GPUs, NVIDIA Blackwell GPUs, NVIDIA Grace™ CPUs , NVIDIA Spectrum-X networking, and NVIDIA BlueField DPU s. For data centers, the Lenovo ThinkSystem SR675 V3 server, equipped with NVIDIA H200 NVL, NVIDIA Networking and NVIDIA AI Enterprise software platform delivers exceptional performance for AI and HPC workloads. The platform scales from a single server, with just 4 GPUs as a starter environment, to a rack scalable unit (SU), offering a turnkey infrastructure solution that enables enterprises of all sizes to quickly deploy a hybrid AI factory or extend their existing IT infrastructure. Lenovo's AI factory ecosystem also includes: Lenovo Neptune liquid-cooled AI infrastructure , efficiently powering AI at scale and built with the next generation of NVIDIA accelerated computing for cloud service providers tackling LLM workloads. Lenovo AI Fast Start services for rapid deployment, integration, and scaling that helps businesses deploy use cases and prove business value in 90 days or less. Driving the Next AI Breakthroughs Across industries, Lenovo hybrid AI solutions are already transforming healthcare, finance, manufacturing and retail —from summarizing medical research and automating compliance reporting to enhancing customer experiences with intelligent recommendations. Lenovo and NVIDIA are working with leading institutions and enterprises to unlock AI's potential. In Germany, Lenovo secured the first NVIDIA GB200 project with the Technical University of Darmstadt to advance scientific discoveries . The project will feature the new energy-efficient Lenovo ThinkSystem SC777 V4 Neptune systems, advanced high-performance servers powered by Lenovo's 6th generation Neptune direct water-cooling platform and services. This collaboration builds on the strong partnership between Lenovo and Technical University of Darmstadt, further enhancing the sustainable and high-performance 'Lichtenberg NHR-Stage 1' Supercomputer with a pioneering next-gen Grace-Blackwell partition. To optimize the patient experience and medical evaluations in preventive health check-ups, the healthcare software development company, Artificial Intelligence System for Human Analysis (AISHA) trained an AI model to analyze MRI scans using a Lenovo and NVIDIA hybrid AI solution. The AI model can analyze a full-body scan in just 30 minutes—over 99% faster than manual analysis—providing doctors with rapid insight and enhancing the patient check-up experience. 0 0
