Lenovo Group < / p> Lenovo Group’s pre-tax profit for fiscal year 2019/2020 hit a new high.
On May 20th, Lenovo Group (0992.HK) announced its full-year and fourth fiscal quarter results for the fiscal year 2019/2020 as of March 31, 2020: The total revenue for the year was 353.1 billion yuan, the highest level in history at the same time as the previous fiscal year; pre-tax profit was 7.09 billion yuan, an increase of 19% year-on-year, a record high. Net profit was 4.63 billion yuan, a year-on-year increase of nearly 12%. Among them, revenue in the fourth fiscal quarter fell by less than 10% due to the impact of the new crown epidemic, at 73.8 billion yuan, pre-tax profit of 539 million yuan, and net profit of 297 million yuan.
Lenovo Group said that the past fiscal year has been a challenging year. After experiencing trade friction, parts shortage, and the impact of the new crown virus on the business, the company relies on excellence Operations, global resources and local delivery have overcome short-term and global difficulties, achieved strong performance, and revenue and profits have greatly exceeded market expectations.
The company ’s three major business performances have improved
The company ’s three major business performances have improved
Lenovo Group Chairman and CEO Yang Yuanqing said in an interview with reporters: “In the past fiscal year, the company ’s three All businesses have improved, the biggest improvement comes from PCSD (Personal Computer and Smart Device Group), mobile phones have also improved by nearly 100 million US dollars, and data centers have also improved by several million US dollars, so all three businesses have improved.
In terms of specific business segments, Lenovo ’s PCSD business segment’s annual revenue increased by 3.6% year-on-year to 277.5 billion yuan, and pre-tax profit increased by 18.3% year-on-year to 16.3 billion yuan The profit margin before tax was 5.9%, both reached a record high. For e-commerce channels, annual revenue increased by 31% year-on-year. PC market share ranked second in the world, reaching 24.5%.
Lenovo ’s MBG (Mobile Business Group) revenue for the full fiscal year was 36.3 billion yuan, and the loss narrowed to 300 million yuan, a significant decrease of 671 million yuan from the previous year Renminbi.
The data center business is affected by factors such as the stagnation of customer demand for large-scale data centers and the sharp drop in prices of key components. During the period, revenue was 38.3 billion yuan, a year-on-year decrease of 8.7%. Data center business revenue was 25.76 billion yuan, a year-on-year increase of 5.3%.
Lenovo Venture Capital contributed investment income of RMB 418 million during the period, and accumulated investment income of RMB 1.81 billion over four years. 34 invested companies became Lenovo’s ecological enterprises, and cooperated with IDG, DCG, Lenovo China and other business groups to generate synergistic sales of 1.81 billion yuan, and jointly promoted the implementation of Lenovo’s 3S strategy through investment enterprise white papers and CEO Summit. OK.
China ’s PC business reached a record high with a share of 39.3%
China ’s PC business reached a record high with a share of 39.3%
Lenovo ’s domestic PC business turnover market share hits a record throughout the fiscal year new highs. According to the latest data from IDC, Lenovo’s domestic PC market share increased by 1.4 and 0.7 percentage points in the fourth fiscal quarter and last fiscal year, respectively, and the market share in fiscal year reached a record high of 39.3%.
The data shows that, whether it is the consumer market or the enterprise market, Lenovo ’s PC business performed very well in the last fiscal year. Among them, the consumer PC turnover market share reached 28%, a new high since the customer-centric transformation and reform was launched in 2017; corporate customers and education customers’ turnover market shares reached 62.2% and 62.5%, both of which reached record highs. In addition, in the $ 800 high-end notebook field, ThinkPad’s turnover market share and sales market share both exceed Apple, ranking first.
Liu Jun, executive vice president of Lenovo Group and president of China, said that due to the impact of the general environment, especially the epidemic, the Chinese PC market has experienced ups and downs last year. However, after the epidemic, there has been a good momentum. Last month, we saw a very obvious rebound in the PC market, and we are more optimistic about this year’s market performance.
Liu Jun said that this quarter including the next quarter will be very good. As a productivity tool, PC has a great correlation with market performance and is also one of the “barometers” of economic development. “The entire PC business, I think whether it is the To C (consumer market) or To B (commercial market) market, there are opportunities. The To C market sees the obvious pull is online education. Before the epidemic, basically one PC, but now it is likely to be one per person. Because some families have two children in their families who want to take online classes and adults have to work online at home, these actual demands have brought a significant boost to the market. Lenovo ’s domestic consumer business turnover in April increased by 111% year-on-year. “
To B market’s positive factor is online office. Many companies are discussing whether they can normalize home office and online office. Home office and online office A major benefit is to improve efficiency and save time to travel between home and office. “From our sales situation, the current purchase of notebooks is much stronger than that of desktops. In the past, companies tended to purchase desktops. Now, many companies have moved to notebooks. In addition, with the vigorous advancement of the country’s new infrastructure, investment in new infrastructure will also bring growth in the PC market. ”
Optimistic about the first two quarters of the new fiscal year
Optimistic about the first two quarters of the new fiscal year
Yang Yuanqing is also optimistic about Lenovo Group ’s current and next quarter results. “It ’s a lot more optimistic than last quarter or even the beginning of this quarter. At that time, we were mainly worried about whether the epidemic would have a greater impact on demand, not only in China, but also globally. Now, ) The impact on our industry may be lower than other industries. Mainly because the demand for home office and online learning / games is growing very fast now. Especially in mature foreign markets, the growth is even faster. There is no doubt that the demand for computers, tablets and monitors has increased. “
Yang Yuanqing believes that the above-mentioned demand growth is not just something during the epidemic, but may It is a long-term and continuous growth. “The total market size of PC will continue to expand in the next two to three years. We estimate that it will grow at least 25% to 30%.”
For many current uncertainties, including economic uncertainty and geopolitical uncertainty. Yang Yuanqing believes that he himself firmly believes in the trend of globalization. “Whether it is the decoupling of the industrial chain or the decoupling of technology, it is unrealistic and unsustainable. In fact, it is because of globalization in the past few years that no matter which country invented the technology, it will ultimately benefit all Humans. “
Yang Yuanqing said that the advantages of manufacturing in China are actually very obvious, one is low cost, and the other is more important is that there is enough labor. “This is more important with sufficient labor, making the advantage of Chinese manufacturing more unbreakable, because this makes the entire upstream and downstream supply of manufacturingThe aggregation of the chain should become possible. Now (the enterprise) can transfer a certain industry to some small countries and transfer a certain link in the supply chain, but if they want to transfer all of them, (these small countries) can’t afford and can’t afford it. He doesn’t have enough labor supply. “