Lenovo Group Ltd.
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- Lenovo brings 'foldable' PC into post-pandemic working world Jul 14, 2020 See more articles on 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
Financial Highlights
| Mar 2020 | HKD | USD |
| Revenue | 396,431.01M | 50,716.34M |
| Gross Profit | 58,951.95M | 7,541.86M |
| 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 | 19,475.56M | 2,491.55M |
| 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
| 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 | 58,951.95M |
| 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 | 19,475.56M |
| 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 | 7,541.86M |
| 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 | 2,491.55M |
| 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. (29.0%)
- Union Star Ltd. (Kayman Islands) (6.3%)
- YANG YUAN QING (5.9%)
- Eastspring Investments (Singapore) Ltd. (1.9%)
- The Vanguard Group, Inc. (1.7%)
- BlackRock Fund Advisors (1.3%)
- Dimensional Fund Advisors LP (1.0%)
- FIL Investment Management (Hong Kong) Ltd. (0.9%)
- DNB Asset Management AS (0.9%)
- Norges Bank Investment Management (0.8%)
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
- 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.
- Motorola Mobility International Sales LLC
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.
- Sichuan Tianyi Comheart Telecom Co., Ltd. Class A
- Sunplus Technology Co., Ltd.
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Last Updated on 15 Jan, 2021
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