Home » Tech News » Lenovo Group’s 3rd Quarter Profit Reached $395 million, 53.1% increase year-on-year

Lenovo Group’s 3rd Quarter Profit Reached $395 million, 53.1% increase year-on-year

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Lenovo Group today announced its financial report for the third fiscal quarter of 2021. In the third quarter, Lenovo Group’s revenue was US$17.25 billion, a year-on-year increase of 22.3%; net profit was US$395 million, a year-on-year increase of 53.1%.

The financial report shows that among all products, Lenovo Group has the highest profit margin in its software and services business. Its invoiced revenue and deferred revenue have increased by 36% and 30% year-on-year, respectively, accounting for approximately 8.1% of the group’s revenue. In these three key business areas, operations and maintenance services, including equipment as a service (DaaS), grew by 73%. All verticals in the Smart Solutions division grew by 49%. Additional services continued to grow steadily, increasing by 26% during the period under review.

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Lenovo Group’s net cash from operating activities in the third quarter of fiscal 2021 was US$2 billion, a year-on-year increase of US$1.4 billion, and the company’s net debt decreased by US$755 million year-on-year. On January 20, 2021, Lenovo’s board of directors approved the issuance of China Depositary Receipts and plans to list and trade on the Science and Technology Innovation Board of the Shanghai Stock Exchange. The company plans to use the proceeds for research and development, strategic investment in related industries and supplementary working capital.

In the third quarter of this fiscal year, Lenovo Group’s personal computer and smart device business revenue increased by 27% year-on-year, and its global personal computer market share reached 25.3%, with an annual growth rate of 0.6%.

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The smart device business group composed of the personal computer and smart device business and the mobile business group business performed better than the industry in the third quarter. The group’s revenue increased by 25% year-on-year to US$15.6 billion, while profit before tax increased by 36% to US$935 million, both hitting record highs.

Mobile business group revenue was US$1.521 billion, an increase of 10% over the same period last year.

The revenue of the Data Center Business Group increased by 2% year-on-year to a record US$1.634 billion, accounting for 9% of the group’s total sales. The loss was further reduced by US$14 million to a pre-tax loss of US$33 million.

In addition, Lenovo today announced a new organizational structure adjustment to further promote the service-oriented strategic transformation and better grasp the development opportunities of intelligent transformation. Starting from April 1, 2021, Lenovo will integrate the current service teams and capabilities of various business departments within the group to form a new business group: Solutions & Services Group (SSG), dedicated to promoting industry intelligent solutions The growth of solutions, equipment services, operation and maintenance services, and businesses including equipment as a service (DaaS) have become the core driving force for the transformation of the company.

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