Today, Lenovo made a huge announcement by revealing its fiscal first-quarter results for the Group. In its report, Lenovo covered many aspects that created a fortune for the company. Credit was given to accelerated digitalization, intelligent transformation and IT upgrades in devices, infrastructure, and applications around the world which led to the sustainable increase in profits of the group.
The company further stated that due to these opportunities its performance delivered significant year-on-year profitability improvements almost doubled to US$650 million and the net income also more than doubled up to 119% as net income margin reached 2.8%, which is the highest achieved by the company in many years.
In areas such as vertical solutions, infrastructure solutions, premium PCs, and adjacent non-PC devices such as tablets, smartphones, embedded computing, and other smart devices, Lenovo reported sustainable growth and profitability improvements. The company also announced that it has increased R&D expense in the first quarter by 40% year-on-year, and also plans to further invest in innovation and double its R&D investments over the next three years.
This is the first time that Lenovo is reporting under the new business group structure of Solutions and Services Group (SSG), Infrastructure Solutions Group (ISG), and Intelligent Devices Group (IDG) which was announced last year. And this is also the first quarter of the company doing so.
“The accelerated digital and intelligent transformation has created significant market opportunities globally. Lenovo is successfully seizing these as we transform from a device company to a services and solutions provider. The proof is in our performance – this quarter alone we’ve doubled profitability year-on-year while net income margin reached the highest in many years. Going forward, we will continue to increase R&D investment, aiming to double it over the next three years; we will further improve our operational excellence, and we remain committed to green innovation and corporate citizenship to achieve long-term sustainable profitability increases,” said Yuanqing Yang, Lenovo Chairman and CEO.