Lenovo Group Ltd.

In the news

Lenovo brings 'foldable' PC into post-pandemic working world Jul 14, 2020
China's top AI chip unicorn to raise $368m in Shanghai debut Jul 7, 2020
Apple to replace Intel processors for Macs with in-house chips Jun 23, 2020
Lenovo says coronavirus will spur PC and data center demand May 20, 2020
Vaio doubles PC production with supply chains reconnected May 19, 2020

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.

Business Summary

Lenovo Group Ltd. is an investment holding company, which engages in the developing, manufacturing, and marketing technology products and services. 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.

Financial Highlights

Mar 2020	HKD	USD
Revenue	396,431.01M	50,716.34M
Gross Profit	58,931.63M	7,539.26M
Operating income	11,916.31M	1,524.48M
Income before tax	8,068.73M	1,032.25M
Net income	5,198.77M	665.09M
EBITDA	19,496.78M	2,494.26M
Diluted EPS	0.42	0.05
Dividends Per Share	0.27	0.03
Total Assets	249,022.20M	32,128.16M
Total liabilities	224,858.29M	29,010.60M
Total equity	24,783.82M	3,197.54M
Operating cash flow	17,278.07M	2,210.42M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	348,397.34M	333,905.19M	354,152.14M	400,244.14M	396,431.01M
Gross Profit	46,766.10M	42,805.75M	44,358.06M	52,695.44M	58,931.63M
Operating income	6,347.97M	1,638.72M	3,184.87M	9,774.36M	11,916.31M
Income before tax	-2,061.55M	3,801.32M	1,196.40M	6,718.03M	8,068.73M
Net income	-994.06M	4,151.70M	-1,478.48M	4,676.57M	5,198.77M
EBITDA	12,070.57M	7,396.70M	8,952.22M	16,037.21M	19,496.78M
Diluted EPS	-0.09	0.37	-0.13	0.38	0.42
Dividends Per Share	0.26	0.26	0.26	0.27	0.27
Total Assets	193,397.07M	211,275.79M	223,630.80M	235,408.10M	249,022.20M
Total liabilities	168,799.75M	185,262.10M	195,288.18M	210,653.44M	224,858.29M
Total equity	23,271.20M	25,052.21M	27,615.18M	26,661.98M	24,783.82M
Operating cash flow	2,525.85M	16,963.36M	-6,069.19M	11,343.12M	17,278.07M

	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020
Revenue	44,912.10M	43,034.72M	45,349.94M	51,037.94M	50,716.34M
Gross Profit	6,028.64M	5,516.93M	5,680.14M	6,719.56M	7,539.26M
Operating income	818.32M	211.20M	407.82M	1,246.39M	1,524.48M
Income before tax	-265.75M	489.92M	153.20M	856.66M	1,032.25M
Net income	-128.14M	535.08M	-189.32M	596.34M	665.09M
EBITDA	1,556.02M	953.30M	1,146.35M	2,045.01M	2,494.26M
Diluted EPS	-0.01	0.04	-0.01	0.04	0.05
Dividends Per Share	0.03	0.03	0.03	0.03	0.03
Total Assets	24,933.38M	27,185.97M	28,494.28M	29,988.48M	32,128.16M
Total liabilities	21,762.22M	23,838.65M	24,882.96M	26,835.00M	29,010.60M
Total equity	3,000.19M	3,223.60M	3,518.63M	3,396.45M	3,197.54M
Operating cash flow	325.60M	2,186.29M	-777.17M	1,446.44M	2,210.42M

Valuation Measures

Mar 2020
PER	9.54
ROA	2.14%
ROE	20.21%
Operating margin	3.00%
Profit margin	1.31%

Key executives

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 & Senior Vice President: Arthur Hu
Chief Technology Officer & Senior Vice President: Yong Rui

Shareholders

Legend Holdings Corp. (29.1%)
Union Star Ltd. (Kayman Islands) (7.2%)
YANG YUAN QING (5.9%)
The Vanguard Group, Inc. (1.8%)
BlackRock Fund Advisors (1.4%)
Eastspring Investments (Singapore) Ltd. (1.2%)
FIL Investment Management (Hong Kong) Ltd. (1.0%)
Dimensional Fund Advisors LP (0.9%)
Norges Bank Investment Management (0.8%)
DNB Asset Management AS (0.7%)

Contact Details

Website:http://www.lenovo.com
Address: Lincoln House, Taikoo Place, 979 King's Road, Hong Kong, Hong Kong
Phone: +852.2590.0228

Related Companies

Lenovo Global Technology (India) Pvt Ltd.
Lenovo Global Technology (Asia Pacific) Ltd.
Lenovo Agencia en Chile
Lenovo Global Technology Germany GmbH
Lenovo Global Technology UK Ltd.
Motorola Mobility UK Ltd.
Leap Wave Ltd.
Lenovo Enterprise Solutions (Singapore) Pte Ltd.
Lenovo Manufacturing Ltd. /Vg/
Motorola (Beijing) Mobility Technologies Co. Ltd.
Lenovo Global Technology HK Ltd.
Lenovo (Shanghai) Computer Technology Co., Ltd.
Lenovo Beijing Information Technology Co., Ltd.
Lenovo Mobile Communication Import & Export Wuhan Co., Ltd.
Lenovo (Shanghai) Information Technology Co., Ltd.
Lenovo (Thailand) Ltd.
Lenovo Perpetual Securities Ltd.
Lenovo (Canada), Inc.
Lenovo Technology BV (Netherlands)
Lenovo US Fulfillment Center LLC
Lenovo Systems Technology Co. Ltd.
Lenovo PC HK Ltd.
International Business Machines Corp. /Servers X86 Division/
Lenovo Turkey
Lenovo (South Africa) (Pty) Ltd.
Motorola Mobility LLC
Lenovo Technology Sdn. Bhd.
Lenovo (Slovakia) sro
Lenovo (Australia & New Zealand) Pty Ltd.
Stoneware, Inc.

Competitors

HP Inc.
Dell Technologies Inc Class C
Super Micro Computer, Inc.
Archos SA
Cisco Systems, Inc.
Hewlett Packard Enterprise Co.
Dawning Information Industry Co., Ltd. Class A
One Stop Systems, Inc.
Inspur Software Co., Ltd. Class A
Inspur Electronic Information Industry Co., Ltd. Class A
PC Connection, Inc.
Insight Enterprises, Inc.
2CRSI SA
China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
Vuzix Corporation
Nutanix, Inc. Class A
Inseego Corp.
Computer Direct Group Ltd
Formula Systems (1985) Ltd.
Matrix IT Ltd.
One Software Technologies Ltd.
Sunplus Technology Co., Ltd.

Last Updated on 14 Jul, 2020