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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 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 HKDUSD
Revenue396,431.01M50,716.34M
Gross Profit58,931.63M7,539.26M
Operating income11,916.31M1,524.48M
Income before tax8,068.73M1,032.25M
Net income5,198.77M665.09M
EBITDA19,496.78M2,494.26M
Diluted EPS0.420.05
Dividends Per Share0.270.03
Total Assets249,022.20M32,128.16M
Total liabilities224,858.29M29,010.60M
Total equity24,783.82M3,197.54M
Operating cash flow17,278.07M2,210.42M
Currency in HKDCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 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 2016Mar 2017Mar 2018Mar 2019Mar 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
PER9.54
ROA2.14%
ROE20.21%
Operating margin3.00%
Profit margin1.31%

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 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 30 Jun, 2020

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