Lenovo Group: First Quarter 2024/25 Financial Results

Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (‘the Group’), today announced its first quarter results for fiscal year 2024/25, reporting improvements in profitability across all business lines and significant progress in capturing hybrid AI opportunities. The Group’s revenue increased 20% year-on-year to US$15.4 billion, while net profit increased 65% year-on-year to US$315 million on a non-Hong Kong Financial Reporting Standards (non-HKFRS) basis⁽¹⁾ basis, and non-PC revenue mix increased by five points year-on-year to reach a historic high of 47%. The Group’s results reflect its clear strategy and strong execution, continued focus on innovation and operational excellence, as well as the benefits it reaps from being a globalised company.

The Group is both uniquely positioned and well-prepared to lead in an era of hybrid AI with its full-stack portfolio of AI devices such as AI PCs, AI servers supporting all major architectures, as well as rich AI native and AI embedded solutions and services. User feedback of Lenovo’s AI PCs, defined by five key features, has been encouraging, with the first AI PCs launched in May and many more to follow during IFA and Tech World later this year. The Group is confident that it will lead the industry in market share for next-generation AI PCs, which are expected to account for over 50% of the PC landscape by 2027, as well as in seizing the huge growth opportunity in the IT market. The Group remained committed to innovation, with R&D expenditure increasing 6% year-on-year to US$476 million.