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Lenovo posts record profit, revenue

By Ma Si | chinadaily.com.cn | Updated: 2022-05-26 22:41
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A visitor checks out a Lenovo virtual-reality headset during a high-tech expo in Wuhan, Hubei province. [Photo by Chu Lin/For China Daily]

Chinese tech heavyweight Lenovo Group said on Thursday it posted record fiscal-year revenue and profits as all of its main businesses were profitable on the back of strong growth momentum in its mobile, infrastructure and solutions and services businesses.

For the fiscal year ending March 31, Lenovo's net income reached the $2 billion mark, up 72 percent year-on-year, and its revenue grew by $10 billion for the second year running to over $71 billion.

The performance came as Lenovo successfully overcame macro-environmental challenges and demonstrated both agility and resilience by navigating industry-wide supply shortages, pandemic disruptions, geopolitical uncertainties and higher inflation.

Yang Yuanqing, Lenovo Chairman and CEO, said although last year was challenging for the world, with the accelerated global digital and intelligent transformation, Lenovo delivered a record year.

"We will capture this window of opportunity, double our research and development investment, drive service-led transformation and stay flexible and resilient to bring the entire company to new heights," Yang said.

Yang added amid recent growing cases of COVID-19 in China, Lenovo's supply chain has shown great resilience and its business has not been severely affected. In the first quarter of this year, the output value of its factory in Hefei, Anhui province increased by 24 percent year-on-year and its exports increased by 29 percent. And the output value and exports of its factory in Wuhan, Hubei province increased by 11 percent and 14 percent respectively.

Lenovo said it continued to strengthen its competitiveness to drive sustainable profitable growth. It has already made strong progress toward doubling R&D investments within three years from fiscal year 2021/2022. In the past fiscal year, its R&D spending was up 43 percent year-on-year to $2 billion, and it hired nearly 5,000 talents that engage in cutting-edge technologies.

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