Yang Yuanqing's internal memo reveals important information: Lenovo AI PCs are about to strike.

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 quarter-on-quarter growth. The gross profit margin increased to 17.5% compared to the same period last year, reaching a new historical high for the second quarter. Non-PC businesses accounted for more than 40%, increasing nearly 3 percentage points compared to the same period last year. In an internal message, Yang Yuanqing, Chairman and CEO of LENOVO GROUP, stated that the company's overall revenue had once again exceeded 100 billion RMB and achieved quarter-on-quarter growth for the second consecutive quarter, indicating that Lenovo is entering a recovery and growth trajectory. At the same time, the personal computer market has bottomed out and a rebound is imminent. Lenovo will launch new generation artificial intelligence terminals such as AI PCs as scheduled and be fully prepared to seize the opportunities of the new round of market growth. The following is the full text of the internal message: Dear colleagues, Today, LENOVO GROUP released its financial report for the second quarter of the 2023/2024 fiscal year. Despite the challenging macro environment, we have demonstrated strong resilience and achieved further improvement in performance compared to the previous quarter. Therefore, I would like to first thank all of you for steadfastly executing our strategies, continuously investing in innovation, and constantly improving our operational excellence. Last quarter, the technology industry as a whole, as well as our own business, showed encouraging positive signals. The market is further stabilizing. Our overall revenue has once again exceeded 100 billion RMB and achieved quarter-on-quarter growth for the second consecutive quarter, indicating that we are entering a recovery and growth trajectory. With innovative technology and products, we have increased the gross profit margin to a new historical high for the second quarter. Moreover, our diversified growth engines continue to gain momentum, with the proportion of non-PC businesses in our overall revenue further increasing. SSG's revenue and operating profit once again reached new historical highs. On the one hand, we firmly grasp the trends of digital office space, hybrid cloud, and sustainable development services. On the other hand, we are actively building hybrid AI professional services to provide strong support for the application of hybrid infrastructure and AI in enterprises. ISG faces multiple challenges from the global economy and industry markets, which have had a certain impact on overall revenue and profitability. However, we still have strong performance in areas such as storage, software, services, edge computing, and high-performance computing. The development of hybrid AI will drive a more diversified global ICT infrastructure market. We will continue to strengthen our product portfolio and competitiveness to seize the immense growth opportunities it brings, while constantly improving our operational efficiency to quickly return to profitability and resume growth. IDG has firmly maintained its position as the global champion in PC shipments and activations, while also maintaining its operating profit margin at an industry-leading level. Smartphones achieved double-digit growth year-on-year in an environment where the overall market shipments remained stable, which is equally encouraging. Currently, the personal computer market has bottomed out and a rebound is imminent. We will launch new-generation AI terminals, such as AI PCs, as scheduled, and be fully prepared to seize the opportunities of the new round of market growth. Colleagues, artificial intelligence will undoubtedly reshape our future, and we have been preparing for this day for a long time. It is precisely because we have steadfastly pursued the strategy of intelligent transformation for many years that we already have a panoramic roadmap for AI products, including AI terminals, AI-oriented and optimized infrastructure, solutions, and services. It is also because of these unique advantages that we have been able to establish the strongest partnerships. As you saw at the Lenovo Tech World conference, our vision of "AI for All" has received wide-ranging responses. Finally, I would like to quote a sentence from the ancient Roman philosopher Seneca, "Luck is what happens when preparation meets opportunity." I believe Lenovo has taken advantageous position in the era of artificial intelligence. Let us work together to build an inclusive and intelligent future!