LENOVO GROUP (00992) announces PC performance: ranked first in four regions, profit margin hits historic high.

On November 16, 2023, Lenovo Group (00992) announced its financial performance for the second quarter of the 2023/24 fiscal year ending September 30, 2023. Overall revenue reached 104.4 billion RMB, showing a consecutive sequential improvement over two quarters. Gross profit margin increased to 17.5% YoY, hitting a new historical high for the second quarter. The non-PC business accounted for over 40% of the total, increasing nearly 3 percentage points YoY. Huang Weiming, Chief Financial Officer of Lenovo Group, stated that the IDG Intelligent Devices Group has solidified its leadership position in the global personal computer market, ranking first in four out of five regions and continuously expanding market share. Despite a 16% decrease YoY due to a high base, its revenue grew 12% sequentially, surpassing the seasonal average level of the past six years. With a steady recovery trend, the revenue growth of the Intelligent Devices Group is expected to turn positive in the near future. Thanks to continuous investment in innovative research and development, excellent operations, and the launch of exciting new products, the operating profit margin of the Intelligent Devices Group reached 7.4%, reaching a historical high. The Intelligent Devices Group has also made significant progress in seizing growth opportunities beyond personal computer products, driving a 2.4-percentage-point YoY increase in non-personal computer sales, accounting for 20% of the Intelligent Devices Group's revenue. Lenovo's smartphone business continues to accelerate its market share growth in both emerging and core markets, achieving double-digit shipment growth outperforming the market. Huang Weiming stated that Lenovo's AI PCs and other innovative products, equipped with AI computing and proprietary base models on intelligent devices, are expected to become a powerful driver in the PC replacement cycle starting from 2024. AI PCs also signify Lenovo's strategic positioning from edge to cloud in the field of artificial intelligence, providing end-to-end solutions that effectively harness the power of AI.