Wednesday, March 20, 2019
Martin Hennecke

Lenovo net soars 268pc to US$245m
Lenovo Group (0992) said its half-year net profit soared 268 percent to US$245 million (HK$1.91 billion), beating expectations, thanks to an intelligent strategy aimed at boosting the personal computer and smart device business.

It declared an interim dividend of 6 HK cents per share.

Seventy-four percent of the technology company's revenues came from the PCSD business while its mobile business accounted for 13 percent of total revenues.

For the six months ended September 31, 2018, PCSD revenues rose by 18 percent year-on-year to US$18.87 billion. Pre-tax profit in this sector spiked 42 percent to US$940 million with pre-tax profit margins up 0.8 percentage points to 5 percent.

Through revenues in mobile business declined 15 percent to US$3.25 billion for the period, the loss before taxation for this sector decreased from US$337 million last year to US$146 million. It was helped by a reduction in expenses, simplified portfolio and a focus on selected market.

Mobile shipments grew 65 percent year-on-year to North America, helping the non-China mobile business and Motorola brand break even.

The data center business's loss before taxation narrowed from US$275 million to US$123 million.

Chief executive and chairman Yang Yuanqing said that he was confident in the company and saw strong growth momentum, as it has consolidated its core business. Lenovo shares dropped slightly to HK$5.55 yesterday.

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