LENOVO GROUP (00992) SSG Business Continues to Soar: Revenue and Profit Reach New High

On November 16, 2023, LENOVO GROUP announced its performance for the second quarter of the 2023/24 fiscal year, ending on September 30, 2023. The overall revenue reached 104.4 billion RMB, showing consecutive quarterly growth. The gross profit margin increased to 17.5% year-on-year, reaching a historical high for the second quarter. Non-PC businesses accounted for over 40% of the total, increasing by nearly 3 percentage points compared to the previous year. Among them, the SSG business achieved a revenue of 13.9 billion RMB and an operating profit of 2.78 billion RMB, both setting new historical highs. The support and project solutions services, which have been vigorously expanded, continued to increase their contribution to the overall revenue of SSG, reaching 56%. Key general solutions, including digital office space, hybrid cloud, and sustainable development services, all achieved double-digit year-on-year growth and made breakthroughs in multiple markets such as Japan and the United States. At the recently concluded World Internet Conference in Wuzhen, LENOVO GROUP Chairman and CEO Yang Yuanqing stated that through the hybrid application of public and private big models, including enterprise-level big models and personal big models, strengths and weaknesses can be effectively leveraged to accelerate the industrial application of big models. This allows both enterprises and individuals to enjoy the efficiency benefits brought by big models without any worries, and enables the digital economy to better serve the development of the real economy.