On August 13, Lenovo Group (00992. HK) announced its first quarter results for the fiscal year 20 / 21 as of June 30, 2020.According to the financial report, Lenovo Group's turnover reached 13.348 billion US dollars (about 94.6 billion yuan), an increase of 7% year-on-year. Pre tax profit reached 332 million US dollars (about 2.35 billion yuan), up 38% year on year. Net profit reached 213 million US dollars (about 1.5 billion yuan), an increase of 31% year-on-year.
Photo source: Lenovo financial report
Lenovo's traditional business, personal computers and intelligent devices, have performed brilliantly. The group's revenue, which consists of personal computer, intelligent device business and mobile business, increased by 5.2% to 11.736 billion US dollars (about 81.5 billion yuan), a new record. Among them, the revenue of personal computer and intelligent equipment business increased by 10.1% year-on-year to reach 10.603 billion US dollars (about 73.6 billion yuan), accounting for 80% of the group's total revenue.
In novel coronavirus pneumonia, Yang Yuanqing, chairman and chief executive of Lenovo Group, said in a media interview that this association has proved that Lenovo has returned to track from the impact of the epidemic and has seized the opportunity of the new crown pneumonia outbreak.
"The increase in home office hours and online learning time around the world has led to increased demand for personal computers and smart devices, making PCs just like mobile phones a productivity tool for everyone." Mr Yang said households that had not previously purchased personal computers and smart devices became new consumers.
This round of PC business growth faster is the mature market. "We are seeing a gratifying growth of PCs in Japan, the United States, including China, where PC penetration is already very high, but PC growth is still on the rise due to demand for home study and office work," he said
Yang Yuanqing firmly believes that the future growth of PC is sustainable. "We believe that this trend is not only in developed countries and markets, just like PC popularization in the past, this trend will also be transferred to emerging countries and markets, so I think the trend of PC demand growth is long-term."
According to previous IDC reports, global PC shipments increased by 11.2% in the second quarter of this year, totaling 72.3 million units. A large part of the reason for the increase in PC shipments is that many people choose to work at home during the epidemic period, so the demand for PCs has become higher.
Yang Yuanqing predicts that the global PC shipment will exceed 260 million units in 2019 and will reach 300 million units this year.
In terms of mobile business, Lenovo MBG mobile business group's mobile business revenue was US $1093 million (about RMB 7.59 billion), down 27% from the same period last year. Mobile business accounts for 8% of the group's total revenue.
For the decline in mobile business performance, Yang Yuanqing said it was affected by the epidemic. "Our main markets are North America and Latin America, but both of them are the most affected areas, and the two markets have declined significantly throughout the quarter."
However, he also said that Lenovo's mobile device sales in Latin America, North America and Europe were all higher than those in the market, especially in the dominant market, with Latin America's market share of 19.4% and North America's market share of 7.9%, both reaching a record high.
Mr Yang said he was not too worried about the mobile business. When talking about the Chinese market, he said that Lenovo Group did not perform well in the domestic market, which was caused by historical reasons and more fierce competition. But now Lenovo's 5g and folding mobile phones are leading the world.
(article / observer.com Yiming)