Date
14 December 2017
Chairman and CEO Yang Yuanqing says Lenovo is facing intense competition in China. Photo: Bloomberg
Chairman and CEO Yang Yuanqing says Lenovo is facing intense competition in China. Photo: Bloomberg

Lenovo posts 28.7% profit surge, aims to be top tablet maker

Lenovo Group (00992.HK), already the world’s largest personal-computer maker, aims to be the largest producer of laptops and tablet computers in two years, the Hong Kong Economic Journal reported Thursday, citing chairman and chief executive Yang Yuanqing.

Net profit for the year ended March 31 rose 28.7 percent to a record US$817 million, or 7.88 US cents per share, from a year earlier. Revenue rose 14 percent to US$38.71 billion, while gross margin was flat at 13.1 percent.

The company proposed to pay a final dividend of HK$18 cents (2 US cents) per share.

Sales of mobile and digital products, including smartphones and tablets, rose 86.1 percent from a year earlier, while sales from PCs and laptops rose 4.9 and 9.9 percent, respectively, Ming Pao Daily reported.

Revenue growth came mainly from smartphone and tablet sales, although the company is facing intense competition in China, where Xiaomi and Coolpad have proven to be good brands and worth learning from.

He said Lenovo is set to launch online sales of its smartphones, adding that its acquisition of Motorola Mobility from Google is expected to help sales overseas.

On China’s move not to use Microsoft Corp.’s Windows 8 operating system in computers used by central government agencies, Yang said there should be no impact on the company as it could choose alternative systems for its products.

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TL/AC/CG

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