Tencent Technology News, August 15th, Lenovo Group today announced its first-quarter results as of June 30, 2019: quarterly revenue of 85.3 billion yuan, achieving year-on-year growth for 8 consecutive quarters; net profit of 1.1 billion yuan, a year-on-year increase More than 111%.
Yang Yuanqing, Chairman and CEO of Lenovo Group, said: “In the first quarter, we achieved a favorable start for the new fiscal year with strong performance, and once again proved that the intelligent transformation strategy we implemented is correct, and the powerful implementation makes us change the fluctuations. Sustainable profitable growth is still achieved in the environment. With excellent operations and firm execution, we are confident that we will turn smart & new vision into a reality for every possible & rsquo; ”
The highlights of each business group's quarterly results are as follows:
IDG (Smart Device Business Group)
The personal computer and smart device business (PCSD) had a turnover of RMB 65.7 billion, a year-on-year increase of 11.7% and a profit before tax of RMB 3.57 billion.
China, Asia Pacific, America and Europe-Middle East-Africa have a turnover of more than RMB 14 billion, especially in the Americas and Asia Pacific. The region's turnover reached 17.3 billion yuan, up 20% year-on-year; The amount reached RMB 17.4 billion, a year-on-year increase of 40%.
PCSD (Personal Computer and Smart Device Business Group)
During the quarter, Lenovo's PC sales increased by 17.9% year-on-year, ranking the global PC market champion, and its market share reached a record high of 24.9%.
From the specific categories, the revenue of workstations increased by 42%, the revenue of game PCs increased by more than 30%, the revenue of thin and light products increased by over 29%, and the revenue of Chromebooks increased by over 89%.
MBG (Mobile Business Group)
For the fourth consecutive quarter, Lenovo's mobile business achieved a profit improvement of nearly RMB 700 million. In the case of a decline in overall mobile phone sales in the North American market, sales of Lenovo's mobile phones increased by 28.4% year-on-year, and profit before tax improved by more than 14%. In the Latin American market, Lenovo's mobile phones have surpassed or surpassed the market for 11 consecutive quarters.
DCG (Data Center Business Group)
Recently, Lenovo held the “2019 Lenovo Global Supercomputing Summit” in Beijing, and announced the launch of its new high-performance computing solution “Deep Teng X9000”. “Deep Teng X9000” is a future-oriented total solution for high-performance computing that combines Lenovo's hardware and software innovations and experiences to take into account the most popular AI and high-performance computing tasks.
“Deep Teng X9000” is the result of Lenovo's deep efforts in data center, high performance computing and AI. In terms of performance, the data center business continued to narrow losses in the quarter, the global x86 server market share increased, and the sales ranking rose to fourth. At the same time, storage and network services achieved significant growth: in the first quarter, storage business turnover increased by more than 80% year-on-year; software-defined infrastructure business turnover maintained double-digit year-on-year growth rate, reaching 18.5%. These results prove that Lenovo's strategy to become a full-stack data center vendor is correct, and previous investments in these areas have yielded results.
It is worth mentioning that in the latest global supercomputer TOP500 rankings, we ranked first with 173 sets of totals, and 33 sets more than the previous list, further expanding the lead in all parts of the world. Provides powerful computing power for scientific computing and artificial intelligence applications.
In the future, Lenovo will continue to implement its established strategy to drive software-defined infrastructure, storage, networking, services and solution-led business growth, and to enhance the customization and autonomous manufacturing capabilities of ultra-large-scale data center operations. At the same time, the sales channel will be further improved, and efforts will be made to improve operational efficiency and achieve higher than the market growth while improving profitability.
Transformation business: Industry smart revenues soared to 4 times, 3S strategy is implemented
In June, Lenovo established Data Intelligent Business Group (DIBG) to realize this independent operation of many years of business. The establishment of DIBG is an important step for Lenovo to promote intelligent transformation. In the quarter, the overall turnover of the industry intelligence sector grew rapidly, reaching 4 times of the same period of the previous year. The turnover of software and services business increased by 23.4% year-on-year, which is the overall turnover of the Group. The growth rate is about 5 times, reaching nearly 5 billion yuan.
In the first quarter of the new fiscal year, Lenovo's performance is exciting. This is the result of putting the future-oriented, clear and clear 3S strategy into practice, and it is also a good start for hard integration and intelligent transformation.
Yang Yuanqing, chairman and CEO of Lenovo Group, said, "There is an old saying in China, & lsquo; Bao Jianfeng from grinding out & rsquo;. In the first quarter of the new fiscal year, we successfully continued the upward trend of the past year. This is the result of the hard integration and transformation in the past few years. It is also a good start, so that we have more confidence and correct Strategy and strong execution, to a new height. ”