Steady pace of transformation, Lenovo (00992) SSG has achieved double-digit growth for 14 consecutive quarters.

On November 15, LENOVO GROUP (00992) (ADR: LNVGY) released its performance report for the second quarter of FY24/25 (ending September 30, 2024), once again demonstrating its high growth performance in the global technology sector. The Solutions and Services Group (SSG) has achieved double-digit growth for 14 consecutive quarters. In the second quarter, LENOVO GROUP's overall revenue reached 127.9 billion RMB, a year-on-year increase of 24%, with a net profit (non-Hong Kong Financial Reporting Standards) of 2.89 billion RMB, a 48% increase from the same period last year. The company continues to optimize its business structure and drive steady revenue and profit growth through deep cultivation in the three core areas of SSG, IDG, and ISG. Particularly, the performance of the SSG sector is remarkable, becoming a key growth engine in the company's transformation. As a key development sector for Lenovo, SSG achieved a revenue of 15.5 billion RMB in the second quarter, a 13% year-on-year increase, achieving double-digit growth for 14 consecutive quarters, demonstrating its leading position in the global digital transformation wave. In addition, its operating profit margin reached 20%, driven by the growth of Lenovo's operational services, project and solution services, as well as strong growth in digital office, hybrid cloud, and sustainable general solution offerings. At the Tech World conference in October, LENOVO GROUP and NVIDIA announced the joint creation of the Lenovo Hybrid AI Advantaged Collection, which includes five levels: infrastructure & devices, data, models & software, services, and Lenovo AI application library. Leveraging Lenovo's "full-stack AI" capabilities and NVIDIA's strengths, this collection helps accelerate the deployment and application of AI at scale, accelerate the development of "practical" AI in the second half, and promote intelligent transformation and innovation across industries.