Lenovo delivers stable profit in transformation year

by TINTSWALO BALOYI JOHANNESBURG, (CAJ News) LENOVO has announced Group revenue of US$62 billion and net income of $1,6 billion for the 2022/23 financial year.The latter is $1,9 billion on a non-Hong Kong Financial Reporting Standards (HKFRS) basis.

The Chinese firm reported profitability was stable with gross margin and operating margin both delivering 18-year highs and non-HKFRS net margin flat year-to-year.While softness in the device market impacted group revenue, revenue from non-PC businesses reached a fiscal year high of nearly 40 percent, fueled by Lenovo’s diversified growth engines of Solutions and Services Group (SSG) and Infrastructure Solutions Group (ISG) growing revenue to record highs of $6,7 billion and $9,8 billion respectively, up 22 percent and 37 percent year-on-year.

“Lenovo has delivered stable profitability in the last fiscal year as our diversified growth engines continue to hit new milestones,” Yuanqing Yang, Chairman and Chief Executive Officer, stated.”Our clear strategy is working, and our operation is resilient, even in the face of global uncertainties.

Going forward, we will continue to invest in RandD to capture the next wave of growth opportunities, so we are well prepared for the future.”RandD is research and development.

Lenovo increased its full year investment in RandD to $2,2 billion, up 6 percent year-to-year.Lenovo’s Board of Directors declared a final dividend of 3,8 cents or 30 HK cents per share for the fiscal year ended March 31, 2023.

Source: CAJ News Agency