The main business all achieved double-digit growth, with non-PC proportion of LENOVO GROUP (00992) reaching 46%.

On November 15, 2024, LENOVO GROUP (00992) (ADR: LNVGY) released its performance report for the FY24/25 second quarter (ending September 30, 2024), with revenue reaching 127.9 billion RMB, a year-on-year increase of 24%, and net profit (non-Hong Kong Financial Reporting Standards) of 2.89 billion RMB, a year-on-year increase of 48%. All main business revenues achieved strong double-digit year-on-year growth. The proportion of non-PC business revenue has increased to 46%, marking a continued acceleration of the company's strategic transformation towards diversification and intelligence. With strong growth in areas such as data centers, Solutions and Services Group (SSG), smart devices, and the mobile business, Lenovo is gradually transforming from a hardware supplier to an integrated technology company offering "hardware + software + services". ISG data center business revenue grew by 65% year-on-year this quarter, reaching 23.7 billion RMB, making it the fastest-growing segment within non-PC businesses. Globally, as the demand for cloud computing, edge computing, and high-performance computing from enterprises rapidly increases, Lenovo's data center solutions have demonstrated advantages in diverse products and services. With innovative liquid cooling technology, hyper-converged architecture, and high-performance computing solutions, Lenovo's competitiveness in the data center market has significantly improved. SSG segment achieved double-digit growth for the 14th consecutive quarter, showcasing the company's leadership position in its intelligent transformation. This quarter, SSG revenue increased by 13% year-on-year to 15.5 billion RMB, with outstanding performance in operational services and project and solution services, accounting for 59% of the total SSG, a 3-percentage-point increase from the previous year. The steady growth of SSG not only solidifies Lenovo's position in the enterprise solution market but also makes it an important source of profit for the company. Lenovo's mobile business made significant progress in several international markets, with revenue growing by 43% year-on-year this quarter, especially performing well in North America and the Asia-Pacific market, with the latter experiencing growth as high as 282%. Through leading innovative foldable screens and cost-effective mobile products, as well as a diversified global market layout, Lenovo further enhances its position in the global mobile market. Furthermore, the smart device segment has introduced many innovative products in the consumer and commercial markets, including tablets, smart home devices, etc., meeting the needs of various scenarios and providing steady growth momentum for its non-PC business. The continuous increase in the proportion of non-PC revenue reflects Lenovo's successful replication of its global PC operational experience into various business segments. Lenovo continues to increase its investment in non-PC businesses such as data centers, intelligent services, and mobile devices, promoting synergies between different business segments. By leveraging technical innovation, global deployment, and customized services, Lenovo continues to meet diversified customer needs and achieve efficient and sustainable business growth. This performance demonstrates Lenovo's strength and resilience in diversifying its presence in the global technology market. The high proportion of non-PC business not only optimizes the revenue structure further, but also brings Lenovo into a broader intelligent market. With a deepening transformation strategy, Lenovo will continue to maintain its leading position in the global technology industry.