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Lenovo Profits Climb 512% Revenue Over A$77 Billion

COVID-19 has been good for Chinese PC Company Lenovo Group, with profits climbing 512% and revenues climbing to over A$77 Billion for the past year.

Lenovo’s Chairman and CEO, Yuanging Yang said the Company is in the “Best shape ever” as they look to expand their SmartHouse offering with new IOT products.

Fourth quarter Group revenue grew at 48% year-to-year to US$15.6 billion.

Profit recorded its highest growth rate in two years – with pre-tax income of US$380 million and net income of US$260 million – up 392% and 512% respectively.

The Q4 results closed out a record year, with annual Group revenue surging past US$60 billion, adding more than US$10 billion on the previous fiscal year.

Profit grew even faster, with pre-tax income of almost US$1.8 billion and net income of US$1.2 billion – both up more than 70% year-on-year.

Yang said Lenovo was “in better shape” despite a worldwide shortage of chips, mainly driven by the stronger-than-expected demand for PCs, tablets, and electronic cars, and it would continue to grow and outperform the market due to its unique hybrid supply chain model of sourcing from both inhouse manufacturing and outsourcing.

“For the large companies, if they can buy chips, they will buy … I think this decision is right, because the shortage will last at least three or four more quarters,” he said.

According to research firm Gartner, worldwide shipments of personal computers rose nearly a third in the March quarter, following a weak 2020 base, the fastest year-over-year growth since Gartner began tracking the PC market two decades ago.

Lenovo strengthened its lead in PCs with a quarter of share of the market, ahead of HP Inc (HPQ.N) with 21.4% and Dell Technologies (DELL.N) with 16.5%, Gartner said.

“Last quarter, we delivered our fastest growing quarter in almost a decade and closed the fiscal year with the new milestone of passing US$60 billion in revenue and significant growth in profit to a new record. These historic highs were achieved by leveraging our core competencies of a clear strategy, innovative products, operational excellence, and global-local model to meet the new needs in the New Normal.” said Yuanqing Yang, Lenovo Chairman and CEO.

“Looking forward, we will capture the huge growth opportunities created by the market trends of information consumption upgrade, infrastructure upgrade and application upgrade to drive long-term sustainable growth and ensure we can build an even smarter future in the years ahead.”

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