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

CTOnews.com, November 16, Lenovo issued its latest financial announcement on the Hong Kong Stock Exchange. Revenue in the first half of the fiscal year fell 20 per cent year-on-year to $27.31 billion (currently about 197.998 billion yuan), resulting in a 60 per cent reduction in profit attributable to equity holders to $426 million.

Lenovo's second-quarter revenue of $14.41 billion (CTOnews.com Note: currently about 104.472 billion yuan) fell 16% to an estimated $14.43 billion, while second-quarter net profit was $249.2 million (currently about 1.807 billion yuan) on an estimated $2.249 billion.

For comparison, Lenovo Group 23Compact had revenue of 90.3 billion yuan and net profit of 1.33 billion yuan in the first quarter of fiscal 24. The group's service-oriented transformational business continued to grow, with non-PC businesses accounting for 41.4 per cent of the group's overall revenue.

Lenovo's second-quarter revenue fell 16%, in line with market expectations, mainly due to low demand for PC. The result is in line with the average estimate of $14.45 billion compiled by seven analysts compiled by LSEG.

In May, Lenovo reported that revenue fell 14 per cent in the fiscal first quarter to March, the first annual decline since 2019, after the outbreak triggered a boom for electronics manufacturers.

Global PC shipments fell 7 per cent in the second quarter of 2023, according to Canalys, a research firm. Quarterly shipments fell by more than 30% in the second half of last year, but the pace has slowed in recent quarters.

To boost profit margins, Lenovo has been expanding its non-PC businesses, such as smartphones, servers and information technology (IT) services. In the first half of its fiscal year, revenue from Lenovo's digital solutions services business grew 14% to $3.6 billion. Net profit attributable to shareholders fell 60 per cent to $249 million in the second quarter, compared with analysts' estimates of $235 million.

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