Lenovo Group Ltd.

In the news

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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 2021	HKD	USD
Revenue	470,917.87M	60,742.31M
Gross Profit	69,050.40M	8,906.60M
Operating income	17,712.25M	2,284.65M
Income before tax	14,005.44M	1,806.52M
Net income	8,804.74M	1,135.69M
EBITDA	25,930.27M	3,344.66M
Diluted EPS	0.69	0.08
Dividends Per Share	0.30	0.03
Total Assets	295,356.26M	37,990.63M
Total liabilities	266,771.41M	34,313.86M
Total equity	27,669.54M	3,559.03M
Operating cash flow	28,333.47M	3,654.65M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	333,905.19M	354,152.14M	400,244.14M	396,431.01M	470,917.87M
Gross Profit	42,805.75M	44,358.06M	52,695.44M	58,951.95M	69,050.40M
Operating income	1,638.72M	3,184.87M	9,774.36M	11,916.31M	17,712.25M
Income before tax	3,801.32M	1,196.40M	6,718.03M	8,068.73M	14,005.44M
Net income	4,151.70M	-1,478.48M	4,676.57M	5,198.77M	8,804.74M
EBITDA	7,396.70M	8,952.22M	16,037.21M	19,475.56M	25,930.27M
Diluted EPS	0.37	-0.13	0.38	0.42	0.69
Dividends Per Share	0.26	0.26	0.27	0.27	0.30
Total Assets	211,275.79M	223,630.80M	235,408.10M	249,022.20M	295,356.26M
Total liabilities	185,262.10M	195,288.18M	210,653.44M	224,858.29M	266,771.41M
Total equity	25,052.21M	27,615.18M	26,661.98M	24,783.82M	27,669.54M
Operating cash flow	16,963.36M	-6,069.19M	11,343.12M	17,278.07M	28,333.47M

	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021
Revenue	43,034.72M	45,349.94M	51,037.94M	50,716.34M	60,742.31M
Gross Profit	5,516.93M	5,680.14M	6,719.56M	7,541.86M	8,906.60M
Operating income	211.20M	407.82M	1,246.39M	1,524.48M	2,284.65M
Income before tax	489.92M	153.20M	856.66M	1,032.25M	1,806.52M
Net income	535.08M	-189.32M	596.34M	665.09M	1,135.69M
EBITDA	953.30M	1,146.35M	2,045.01M	2,491.55M	3,344.66M
Diluted EPS	0.04	-0.01	0.04	0.05	0.08
Dividends Per Share	0.03	0.03	0.03	0.03	0.03
Total Assets	27,185.97M	28,494.28M	29,988.48M	32,128.16M	37,990.63M
Total liabilities	23,838.65M	24,882.96M	26,835.00M	29,010.60M	34,313.86M
Total equity	3,223.60M	3,518.63M	3,396.45M	3,197.54M	3,559.03M
Operating cash flow	2,186.29M	-777.17M	1,446.44M	2,210.42M	3,654.65M

Valuation Measures

Mar 2021
PER	14.96
ROA	3.23%
ROE	33.57%
Operating margin	3.76%
Profit margin	1.86%

Key executives

Chairman & Chief Executive Officer: Yuan Qing Yang
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
SVP, Chief Marketing & Strategy Officer: Jian Qiao

Shareholders

Legend Holdings Corp. (29.0%)
Union Star Ltd. (Kayman Islands) (6.3%)
YANG YUAN QING (6.2%)
The Vanguard Group, Inc. (1.5%)
BlackRock Fund Advisors (1.2%)
Dimensional Fund Advisors LP (1.1%)
CSOP Asset Management Ltd. (0.9%)
Norges Bank Investment Management (0.8%)
FIL Investment Management (Hong Kong) Ltd. (0.7%)
APG Asset Management NV (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

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Lenovo PC International Ltd.
Lenovo (Israel) Ltd.
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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.
Nokia Oyj
Super Micro Computer, Inc.
Archos SA
Cisco Systems, Inc.
Hewlett Packard Enterprise Co.
Dawning Information Industry Co., Ltd. Class A
2CRSI SA
One Stop Systems, Inc.
Inspur Software Co., Ltd. Class A
PC Connection, Inc.
Insight Enterprises, Inc.
Chenbro Micom Co., Ltd.
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.
Red Cat Holdings Inc
Sichuan Tianyi Comheart Telecom Co., Ltd. Class A
Sunplus Technology Co., Ltd.

Last Updated on 24 Jan, 2022