Lenovo, China's largest computer manufacturer, recorded a net
profit of $67 million in the first fiscal quarter, 12 times higher
than the same period last year, due to robust global computer
sales.
The company posted revenue of $3.9 billion, representing a
year-on-year increase of 13 percent. The rise was mainly attributed
to growing demand in the global personal computer (PC) market.
During the period, Lenovo's worldwide PC shipments grew 22
percent, exceeding the industry average of 13 percent.
The company's gross profit margin rose 14.9 percent, compared to
14.3 percent last year, while pre-tax income increased 258 percent
to $123 million. Net cash reserves at the end of the first
half-year period were $1.3 billion.
Lenovo is the world's third-largest computer firm in terms of
sales. Its global market share in the quarter increased to 8.3
percent, up 0.7 percent.
"In the past two years, through the formulation of the right
strategy and effective execution, Lenovo is showing signs of
growth," said Lenovo Chairman Yang Yuanqing.
The company reported pre-tax income of $78 million.
For the mainland market, Lenovo posted 14 percent growth in
revenue to $1.5 billion. The company currently holds 35.5 percent
market share in the mainland's PC market.
The company reported a moderate increase in mobile phone sales
volume as well, though sales revenue slid from $173 million to $113
million, due to furious competition in the mainland market.
Lenovo is currently the fourth-largest mobile operator on the
mainland with a 6.6 percent market share.
Apart from the mainland, the company's Asia-Pacific businesses
performed well. Regional shipment grew 12 percent while revenue
climbed 13 percent to $469 million thanks to expanded business in
India and ASEAN countries.
"With the opening of a new marketing hub in India and new
manufacturing facilities in Mexico, India, the mainland and the US,
Lenovo continues to invest in the key markets around the world and
accelerate our ability to reach both existing and new regions,"
said William Amelio, the company's president and chief executive
officer.
Lenovo's shares yesterday closed at HK$5.1 on the Hong Kong
market, falling HK$0.34, or 6.25 percent.
(China Daily August 3, 2007)
