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Lenovo bounces back in Q1 of FY

By Wang Junwei | chinadaily.com.cn | Updated: 2020-08-13 17:20
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Yang Yuanqing, Lenovo chairman and CEO. [Photo provided to chinadaily.com.cn]

Chinese tech giant Lenovo Group delivered a strong performance in the first quarter of the 2020/21 fiscal year on Thursday, with net profit up 31 percent yearly to 1.5 billion yuan ($213 million).

According to the fiscal report, Lenovo Group's revenue in the first fiscal quarter (three months ended June 30) registered 94.6 billion yuan, up 6.7 percent on a yearly basis. Pre-tax profit grew 38 percent compared to the same quarter a year earlier, to 2.35 billion yuan.

Lenovo's personal computer market share remained first in the world. The pre-tax profit of the PC and smart device business stood at 4.7 billion yuan, a year-on-year surge of 28 percent, and the profit margin reached 6.3 percent, a new record.

Its data center business resumed powerful growth, with revenue growing almost 20 percent to 11.4 billion yuan.

The manufacturer continued to make up the largest portion of global top 500 supercomputers, and its high-performance computing business revenue increased by 21 percent.

Its software and service business revenue reached 7.15 billion yuan, up 38 percent year-on-year, accounting for about 7.6 percent of the group's revenue.

"Our outstanding performance last quarter proves that Lenovo has quickly regained momentum from the impact of the pandemic and is capturing the new opportunities emerging from remote working, education and accelerated digitalization," said Yang Yuanqing, Lenovo chairman and CEO.

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