Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on August 17, Lenovo today announced the results of the first quarter of fiscal year 2023 for the year ending June 30, 2023: revenue of 90.3 billion yuan and net profit of 1.33 billion yuan.

Yang Yuanqing, chairman and CEO of Lenovo Group, issued an internal letter after the announcement of the results, announcing that he would invest more than 7 billion yuan in the next three years to accelerate the deployment of artificial intelligence technologies and applications around the world.

Yang Yuanqing said: "AIGC generative artificial intelligence and LLM big language model are catalysts and accelerators for the development and application of artificial intelligence. We should seize the opportunity." At the same time, we should also see that AIGC and LLM are only part of artificial intelligence, and our intelligent transformation strategy is to create artificial intelligence-driven full-stack capabilities from pocket to cloud. We will continue to develop artificial intelligence terminals, artificial intelligence infrastructure and artificial intelligence-empowered industry solutions to help customers and consumers in various industries achieve a comprehensive jump in productivity. "

CTOnews.com attached full text of internal letter:

Dear colleagues,

Today we release our results for the first quarter of 2023 Compact 2024. Despite the multiple challenges of the macroeconomic and industrial markets, we still achieved an overall turnover of 90.3 billion yuan and a net profit of 1.33 billion yuan in accordance with non-Hong Kong financial reporting standards. We have unswervingly promoted service-oriented transformation and technology-driven innovation and made important progress, making preparations for seizing the long-term opportunity of continuously accelerating digital and intelligent transformation.

In the last quarter, the proportion of non-PC business in the group's overall turnover increased by 4 percentage points to 41% compared with the same period last year, reflecting the effectiveness of the construction of diversified growth engines. Among them, the SSG programme services business continues to maintain strong growth and high profitability. Operations and maintenance services, projects and solution services, which are not directly related to equipment ownership, account for more than half of the total turnover of SSG.

In the PC market, as we predicted in the previous quarter, the process of channel inventory adjustment in the last quarter is over, and shipments and activation are now in line with each other. However, due to lower prices of commodity components and increased competition in the market, the average unit price of personal computers fell rapidly, affecting revenue. At the same time, other terminal markets, including smartphones and tablets, are in a similar situation. But we are proud that we remain the world's number one market leader in personal computers, and smartphone activation reached an all-time high in the first quarter of a decade, leaving room for growth in the coming quarters.

Our ISG intelligent infrastructure solutions business has been affected by the decline in demand for traditional computing servers from cloud service providers, and revenue has declined slightly in the short term, but we have still achieved very strong growth in business areas such as storage, software, services and high-performance servers. Among them, the storage business has jumped to the fourth place in the world with a year-on-year three-digit super-rapid growth. In the emerging field of AI hardware infrastructure, according to the definition and statistics of IDC, Lenovo is growing rapidly and currently ranks third in the world and is one of the leading major manufacturers.

We remain cautiously optimistic in the coming quarters. It is believed that with the macroeconomic stabilization and the bottoming out of commodity parts prices, the terminal product market will gradually recover and achieve growth in the second half of the fiscal year.

In the longer term, the global upsurge of artificial intelligence fully confirms the correctness of our intelligent strategy. AIGC generative artificial intelligence and LLM big language model are catalysts and accelerators for the development and application of artificial intelligence. We should seize the opportunity. At the same time, we should also see that AIGC and LLM are only part of artificial intelligence, and our intelligent transformation strategy is to create artificial intelligence-driven full-stack capabilities from pocket to cloud. We will continue to develop artificial intelligence terminals, artificial intelligence infrastructure and artificial intelligence-empowered industry solutions to help customers and consumers in various industries achieve a comprehensive jump in productivity. In the next three years, we will invest more than 7 billion yuan to accelerate the deployment of artificial intelligence technologies and applications around the world. For more information, please follow the Lenovo Tech World Lenovo Innovation and Technology Conference on October 24.

Friends, it is precisely because of such a huge opportunity, because of the right strategy and experienced team, I am full of confidence in Lenovo to achieve long-term sustainable growth and profit improvement. In the face of current external challenges, we also need to flexibly control expenses according to revenue. The cost rate of high resilience is the key for us to maintain higher efficiency and stronger competitiveness, which requires the strong support of everyone.

Let's work together to create a bright future with sustained growth, stable profits, continuous innovation and everlasting foundation.

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