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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 2023 CNYUSD
Revenue424,713.54M61,946.85M
Gross Profit67,270.87M9,811.83M
Operating income19,381.42M2,826.89M
Income before tax14,759.70M2,152.78M
Net income11,022.69M1,607.72M
EBITDA28,655.52M4,179.56M
Diluted EPS0.870.12
Dividends Per Share0.270.04
Total Assets267,452.79M38,920.05M
Total liabilities225,248.35M32,778.41M
Total equity38,397.08M5,587.59M
Operating cash flow20,080.88M2,928.91M
Currency in CNYCurrency in USD

Historical Data

CNY | USD
 Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Revenue 342,539.05M 353,332.61M 411,829.13M 459,597.03M 424,713.54M
Gross Profit 45,098.09M 52,542.93M 60,386.26M 71,133.80M 67,270.87M
Operating income 8,365.14M 10,620.82M 15,489.79M 21,080.83M 19,381.42M
Income before tax 5,749.46M 7,191.53M 12,248.10M 17,805.77M 14,759.70M
Net income 4,002.33M 4,633.58M 7,699.96M 13,025.99M 11,022.69M
EBITDA 13,725.05M 17,358.26M 22,676.65M 29,194.66M 28,655.52M
Diluted EPS 0.33 0.37 0.60 1.01 0.87
Dividends Per Share -- -- -- -- 0.27
Total Assets 201,528.61M 227,888.30M 249,028.58M 282,334.19M 267,452.79M
Total liabilities 180,336.60M 205,775.11M 224,927.37M 247,634.34M 225,248.35M
Total equity 22,824.84M 22,680.48M 23,329.48M 31,656.12M 38,397.08M
Operating cash flow 9,707.73M 15,399.66M 24,778.31M 26,553.08M 20,080.88M
 Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Revenue 51,037.94M 50,716.34M 60,742.31M 71,618.21M 61,946.85M
Gross Profit 6,719.56M 7,541.86M 8,906.60M 11,084.65M 9,811.83M
Operating income 1,246.39M 1,524.48M 2,284.65M 3,284.99M 2,826.89M
Income before tax 856.66M 1,032.25M 1,806.52M 2,774.64M 2,152.78M
Net income 596.34M 665.09M 1,135.69M 2,029.81M 1,607.72M
EBITDA 2,045.01M 2,491.55M 3,344.67M 4,549.35M 4,179.56M
Diluted EPS 0.04 0.05 0.08 0.15 0.12
Dividends Per Share -- -- -- -- 0.04
Total Assets 29,988.48M 32,128.16M 37,990.63M 44,510.44M 38,920.05M
Total liabilities 26,835.00M 29,010.60M 34,313.86M 39,039.95M 32,778.41M
Total equity 3,396.45M 3,197.54M 3,559.03M 4,990.63M 5,587.59M
Operating cash flow 1,446.44M 2,210.42M 3,654.65M 4,137.72M 2,928.91M

Valuation Measures

Mar 2023
PER--
ROA4.00%
ROE31.46%
Operating margin4.56%
Profit margin2.59%

Management

  • Chairman & Chief Executive Officer: Yuan Qing Yang
  • Group Operations Officer & Senior Vice President: 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

    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.
    • Hewlett Packard Enterprise Co.
    • Archos SA
    • PC Connection, Inc.
    • Insight Enterprises, Inc.
    • 2CRSI SA
    • Matrix IT Ltd.
    • One Software Technologies Ltd.
    • Inseego Corp.
    • Computer Direct Group Ltd
    • Red Cat Holdings Inc
    • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
    • Nutanix, Inc. Class A
    • Vuzix Corporation
    • Asia Pacific Satellite Inc.
    • C-LAB Ltd.
    • Longhorn Auto Co., Ltd. Class A
    • Sichuan Furong Technology Co. Ltd. Class A

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    Last Updated on 20 Sep, 2023

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