Business Wire IndiaLenovo GroupLimited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries (‘the Group’), today announced Q2 results for fiscal year 2024/25, reporting significant increases and growth in net income, year-on-year revenue growth for the 4th consecutive quarter, and strong double-digit year-on-year revenue increases from all its business groups. Group revenue increased 24% year-on-year to US$17.9 billion. Net income was up 48% year-on-year to US$404 million on a non-Hong Kong Financial Reporting Standards (non-HKFRS)[1] basis, and non-PC revenue mix was up five points year-to-year to 46%. The Group’s results reflect its clear strategy, operational excellence, investment in R&D, innovations in hybrid AI, and global footprint.
The Group’s hybrid AI strategy and years of continuous investment in R&D and innovations are paying off, with its first phase of AI PCs, launched in China in May 2024, already reaching double digit share of its total notebook shipments in the China market. Recent launches of AI PCs for the global market with Lenovo AI Now have also been received positively. For enterprise AI, the Group is leveraging its full-stack hybrid infrastructure as well as Lenovo Hybrid AI Advantage to capture growth opportunities. This relentless focus on AI innovation as well as investment in R&D (up 10% year-on-year to US$548 million) is firmly establishing the Group’s market differentiation and industry leadership.
Looking ahead to growth, Lenovo will drive continued innovation in hybrid AI to further accelerate growth and profitability increases and is optimistic its current momentum will continue through the rest of the fiscal year.
Lenovo’s Board of Directors declared an interim dividend of 8.5 HK cents per share.
Chairman and CEO quote – Yuanqing Yang:
"Last quarter, we achieved strong, sustainable, and accelerated growth, marking another period of revenue expansion across all business groups. This significant momentum is driven by our clear strategy, innovation investment, operational excellence, and global presence, as well as our commitment to hybrid AI, where we are further strengthening our market differentiation and industry leadership. As we look ahead, we are confident that our ongoing innovation advancements in hybrid AI will continue to accelerate growth and profitability, propelling us forward for the rest of the fiscal year."
Financial Highlights:
|
| Q2 FY 24/25
US$ millions | Q2 FY 23/24
US$ millions | Change
|
| Group Revenue | 17,850 | 14,410 | 24% |
| Pre-tax income | 473 | 358 | 32% |
| Net Income (profit attributable to equity holders) | 359 | 249 | 44% |
| Net Income (profit attributable to equity holders – non-HKFRS) [1] | 404 | 273 | 48% |
|
| |||
| Basic earnings per share (US cents) | 2.92 | 2.09 | 0.83 |
Intelligent Devices Group (IDG): Significant growth and leading profitability, accelerating in personal AI
Q2 FY24/25 performance:
Opportunities and Sustainable Growth:
Infrastructure Solutions Group (ISG): Hypergrowth, building hybrid AI infrastructure
Q2 FY24/25 performance:
Opportunities and Sustainable Growth:
Solutions and Services Group (SSG): High margin and double-digit growth, building hybrid AI Advantage
Q2 FY24/25 performance:
Opportunities and Sustainable Growth:
ESG and corporate highlights
Achievements, announcements, and notable commitments over the past quarter include:
[1] Non-HKFRS measure was adjusted by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, mergers and acquisitions related charges, impairment of intangible assets; and the corresponding income tax effects, if any.
About Lenovo
Lenovo is a US$57 billion revenue global technology powerhouse, ranked #248 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Focused on a bold vision to deliver Smarter Technology for All, Lenovo has built on its success as the world’s largest PC company with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized devices (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, high performance computing and software defined infrastructure), software, solutions, and services. Lenovo’s continued investment in world-changing innovation is building a more equitable, trustworthy, and smarter future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.
| LENOVO GROUP LIMITED | ||||
| FINANCIAL SUMMARY | ||||
| For the quarter ended September 30, 2024 | ||||
| (in US$ millions, except per share data) | ||||
|
|
| Q2 24/25 | Q2 23/24 | Y/Y CHG |
| Revenue |
| 17,850 | 14,410 | 24% |
| Gross profit |
| 2,796 | 2,522 | 11% |
| Gross profit margin |
| 15.7% | 17.5% | (1.8) pts |
| Operating expenses |
| (2,145) | (2,008) | 7% |
| R&D expenses |
| (548) | (498) | 10% |
| Expenses-to-revenue ratio |
| 12.0% | 13.9% | (1.9) pts |
| Operating profit |
| 651 | 514 | 27% |
| Other non-operating income/(expenses) - net |
| (178) | (156) | 13% |
| Pre-tax income |
| 473 | 358 | 32% |
| Taxation |
| (90) | (69) | 31% |
| Profit for the period |
| 383 | 289 | 33% |
| Non-controlling interests |
| (24) | (40) | (38)% |
| Profit attributable to equity holders |
| 359 | 249 | 44% |
| Profit attributable to equity holders- non-HKFRS[1] |
| 404 | 273 | 48% |
| EPS (US cents) |
| 2.92 | 2.09 | 0.83 |
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