Lenovo hits historic highs for quarterly profit, revenue

Chinese tech heavyweight Lenovo Group Ltd announced record quarterly results on Thursday, with historic highs for both profit and revenue, as it pounced on opportunities created by accelerated digital transformation.

Despite wider industry supply challenges, Lenovo's net income in the September quarter grew 65 percent year-on-year to $512 million, and its net income margin improved by 0.7 percentage points,on track to meet its goal of doubling in three years.

Its revenue continued its strong growth trajectory at $17.9 billion, up 23 percent year-on-year, and its research and development expenses for the quarter were up almost 60 percent, owing to increased investments in innovation.

Yang Yuanqing, Lenovo chairman and CEO, said "Lenovo's New IT technology architecture of 'client-edge-cloud-network-intelligence' is gaining momentum and more accepted across the industry."

"Through the strong execution of our 3S strategy (smart devices/internet of things, smart infrastructure, smart Vertical) last quarter, both our net income and revenue achieved new records, and we are on track to double our net margin in three years," Yang said.

"Looking ahead, we will continue to pursue our goal to double R&D spending over three years, and further drive our service-led intelligent transformation," he added.

According to the company, its strategy to drive sustainable profit improvements and growth will continue to focus on high-margin businesses and segments.

Lenovo said its operational excellence, innovation and strong execution underpin improvements across all key business groups, despite wider industry supply challenges. These, together with the opportunities created by accelerated digitalization, intelligent transformation and IT upgrades in devices, infrastructure, and applications around the world, continue to fuel its long-term and sustainable profitability increases.