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Electronic Technology

Lenovo Group Ltd.

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 development, manufacture and marketing of technology products and services. It operates through the following segments: Solutions and Services Group, Intelligent Devices Group, and Infrastructure Solutions Group. 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 2022 HKDUSD
Revenue557,510.26M71,618.21M
Gross Profit86,288.25M11,084.65M
Operating income23,820.92M3,060.05M
Income before tax21,599.14M2,774.64M
Net income15,801.06M2,029.81M
EBITDA33,663.33M4,324.41M
Diluted EPS1.220.15
Dividends Per Share0.380.04
Total Assets348,579.09M44,510.44M
Total liabilities305,737.51M39,039.95M
Total equity39,083.69M4,990.63M
Operating cash flow32,209.99M4,137.72M
Currency in HKDCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 354,152.14M 400,244.14M 396,431.01M 470,917.87M 557,510.26M
Gross Profit 44,358.06M 52,695.44M 58,951.95M 69,050.40M 86,288.25M
Operating income 3,184.87M 9,774.36M 11,916.31M 17,712.25M 23,820.92M
Income before tax 1,196.40M 6,718.03M 8,068.73M 14,005.44M 21,599.14M
Net income -1,478.48M 4,676.57M 5,198.77M 8,804.74M 15,801.06M
EBITDA 8,952.22M 16,037.21M 19,475.56M 25,930.27M 33,663.33M
Diluted EPS -0.13 0.38 0.42 0.69 1.22
Dividends Per Share 0.26 0.27 0.27 0.30 0.38
Total Assets 223,630.80M 235,408.10M 249,022.20M 295,356.26M 348,579.09M
Total liabilities 195,288.18M 210,653.44M 224,858.29M 266,771.41M 305,737.51M
Total equity 27,615.18M 26,661.98M 24,783.82M 27,669.54M 39,083.69M
Operating cash flow -6,069.19M 11,343.12M 17,278.07M 28,333.47M 32,209.99M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 45,349.94M 51,037.94M 50,716.34M 60,742.31M 71,618.21M
Gross Profit 5,680.14M 6,719.56M 7,541.86M 8,906.60M 11,084.65M
Operating income 407.82M 1,246.39M 1,524.48M 2,284.65M 3,060.05M
Income before tax 153.20M 856.66M 1,032.25M 1,806.52M 2,774.64M
Net income -189.32M 596.34M 665.09M 1,135.69M 2,029.81M
EBITDA 1,146.35M 2,045.01M 2,491.55M 3,344.66M 4,324.41M
Diluted EPS -0.01 0.04 0.05 0.08 0.15
Dividends Per Share 0.03 0.03 0.03 0.03 0.04
Total Assets 28,494.28M 29,988.48M 32,128.16M 37,990.63M 44,510.44M
Total liabilities 24,882.96M 26,835.00M 29,010.60M 34,313.86M 39,039.95M
Total equity 3,518.63M 3,396.45M 3,197.54M 3,559.03M 4,990.63M
Operating cash flow -777.17M 1,446.44M 2,210.42M 3,654.65M 4,137.72M

Valuation Measures

Mar 2022
PER6.27
ROA4.90%
ROE47.34%
Operating margin4.27%
Profit margin2.83%

Key executives

  • Chairman & Chief Executive Officer: Yuan Qing Yang
  • Senior Vice President & Group Operations Officer: Che Min Tu
  • 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. (29.9%)
  • YANG YUAN QING (6.3%)
  • Union Star Ltd. (Kayman Islands) (5.9%)
  • The Vanguard Group, Inc. (1.6%)
  • BlackRock Fund Advisors (1.4%)
  • China Asset Management Co., Ltd. (1.0%)
  • Dimensional Fund Advisors LP (0.9%)
  • Norges Bank Investment Management (0.8%)
  • Schroder Investment Management (Singapore) Ltd. (0.8%)
  • CSOP Asset Management Ltd. (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 (Tianjin) Commercial Factoring Co., Ltd.
  • Motorola Mobility Comercio de Produtos Eletronicos Ltda.
  • Lenovo East Europe/Asia LLC
  • Lenovo (Venezuela) SA
  • Lenovo PC International Ltd.
  • Lenovo (Israel) Ltd.
  • Lenovo (Huiyang) Electronic Industrial Co., Ltd.
  • Lenovo (Hong Kong) Ltd.
  • Lenovo Global Technology (Hong Kong) Distribution Ltd.
  • Lenovo HK Services Ltd.
  • Lenovo Enterprise Solutions LLC
  • Beijing Lenovo Software Ltd.
  • Lenovo (Asia Pacific) Ltd. Sucursal Colombia
  • Lenovo Philippines, Inc.
  • Lenovo Global Technology Korea LLC
  • Lenovo Global Technology (India) Pvt Ltd.
  • Lenovo Global Technology (Asia Pacific) Ltd.
  • Lenovo Agencia en Chile
  • Lenovo Global Technology Germany GmbH
  • Lenovo Enterprise Technology Co., Ltd.
  • Lenovo Global Technology UK Ltd.
  • Motorola Mobility UK Ltd.
  • Lenovo (Shanghai) Co., Ltd.
  • Shenzhen Lenovo Overseas Holdings Ltd.
  • Lenovo Magyarorszag Kft
  • Leap Wave Ltd.
  • Lenovo Enterprise Solutions (Singapore) Pte Ltd.
  • Lenovo Shenzhen Electronics Co., Ltd.
  • Lenovo Manufacturing Ltd. /Vg/
  • Motorola Wuhan Mobility Technologies Communication Co., Ltd.

Competitors

  • HP Inc.
  • Logitech International S.A.
  • Super Micro Computer, Inc.
  • Archos SA
  • Cisco Systems, Inc.
  • Hewlett Packard Enterprise Co.
  • Dawning Information Industry Co., Ltd. Class A
  • 2CRSI SA
  • Inspur Software Co., Ltd. Class A
  • PC Connection, Inc.
  • Insight Enterprises, Inc.
  • Chenbro Micom Co., Ltd.
  • Red Cat Holdings Inc
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • Nutanix, Inc. Class A
  • Vuzix Corporation
  • Inseego Corp.
  • Computer Direct Group Ltd
  • Formula Systems (1985) Ltd.
  • Matrix IT Ltd.
  • One Software Technologies Ltd.
  • Sichuan Tianyi Comheart Telecom Co., Ltd. Class A
  • Sunplus Technology Co., Ltd.
Last Updated on 12 Aug, 2022

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