Lenovo Group Ltd.

Hong Kong

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Apr 26, 2017
Prev close: 5.08
Apr 26, 2017
Market cap:
Market cap(USD):
Shares: 11,108.65M

Currency in HKD

Company profile

Market(Ticker): HKG(992)
Electronic Technology
Computer Processing Hardware
Full time employees: 60,000

Business summary

Lenovo Group Ltd. is an investment holding company, which engages in the developing, manufacturing, and marketing technology products and services. It operates its business through the following geographical segments: China, Asia Pacific, Europe-Middle East-Africa and Americas. Its products include personal computers, workstations, servers, storage, smart televisions, and mobile products such as smartphones, tablets, and applications. The company was founded in 1984 and is headquartered in Hong Kong.

Company background

Lenovo Group of China is the world's largest maker of personal computers. The company has recently been expanding its business in the peripheral fields, such as smartphones, tablet computers and enterprise servers, focusing on its so-called PC Plus strategy to diversify its product portfolio. The company is also stepping up efforts to develop wearable gadgets, aiming to become an all-around manufacturer in the information technology field.

Founded by Liu Chuanzhi and his colleagues, Lenovo began as a PC sales unit in 1984, when Liu was a researcher at the state-run Chinese Academy of Sciences. In the 1990s, the company started selling PCs under its own brand, building up sales by offering prices lower than those of its rivals. By the late 1990s, it had claimed the top share of the domestic PC market.

Lenovo made big strides in the global market after acquiring the PC business of U.S. technology powerhouse IBM in 2005. The company has rapidly expanded its overseas sales, helped by the global popularity of the ThinkPad brand, originally developed by IBM.

Lenovo is also known for aggressively pursuing mergers and acquisitions. In 2011, it merged its PC operations with those of Japanese IT solutions provider NEC, launching a PC joint venture in Japan. In 2014, the Chinese company bought the Motorola's smartphone business from U.S. search giant Google.

Chinese investment company Legend Holdings, which Liu heads, holds slightly more than 30% of Lenovo's outstanding shares. Lenovo is also known for its close ties with the Chinese government, a relationship that has been a source of Internet security concerns in the U.S. and Europe. Ensuring management transparency is seen as a main challenge facing the company as it grows.

In the news

Financial highlights

Mar 2016

  • Local currency
  • US Dollar
Revenue 348,397.34M
Gross profit 46,766.10M
Operating income 6,347.97M
Income before tax -2,061.55M
Net income -994.06M
EBITDA 12,070.57M
Diluted EPS -0.09
Dividends per share 0.26
Total assets 193,397.07M
Total liabilities 168,799.75M
Total equity 23,271.20M
Operating cash flow 2,525.85M

Currency in HKD

Revenue 44,912.10M
Gross profit 6,028.64M
Operating income 818.32M
Income before tax -265.75M
Net income -128.14M
EBITDA 1,556.02M
Diluted EPS -0.01
Dividends per share 0.03
Total assets 24,933.38M
Total liabilities 21,762.22M
Total equity 3,000.19M
Operating cash flow 325.60M

Currency in USD

Valuation measures

Mar 2016

PER --
ROA -0.49%
ROE -3.61%
Operating margin 1.82%
Profit margin -0.28%

Key executive

  • Chairman & Chief Executive Officer: Yuan Qing Yang
  • President & Chief Operating Officer: Gianfranco Lanci
  • Chief Financial Officer & Executive Vice President: Wai Ming Wong
  • Chief Information Officer: Arthur Hu
  • Chief Technology Officer & Senior Vice President: Yong Rui

Share holders

  • Legend Holdings Corp.(31.4%)
  • YANG YUAN QING(6.2%)
  • The Vanguard Group, Inc.(1.9%)
  • Matthews International Capital Management LLC(1.5%)
  • BlackRock Advisors LLC(1.3%)
  • BlackRock Investment Management LLC(1.3%)
  • BlackRock Fund Advisors(1.0%)
  • Hang Seng Investment Management Ltd.(0.7%)
  • Skagen AS(0.7%)
  • DNB Asset Management AS(0.7%)


  • Website:
  • Address: 23rd Floor, Lincoln House, Taikoo Place, 979 King's Road, Hong Kong, Hong Kong
  • Phone: +852.2590.0228

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