On the afternoon of November 7, 2019, Lenovo Group reported double growth in overall revenue and profit for the second quarter of the fiscal year ended September 30, 2019. Lenovo’s revenue for the quarter was RMB94.8 billion, marking the 9th consecutive quarter of year-on-year growth, while pre-tax profit was RMB2.17 billion, up 45% year-on-year. Net profit reached RMB1.42 billion, up 20% year-on-year.
Yang Yuanqing, Chairman and CEO of Lenovo Group, said: “In the second quarter, we are pleased to see that Lenovo’s growth momentum continues to accelerate, proving that our intelligent transformation strategy is in the right direction and firm lying.” Especially in the current complex and dynamic international economic and trade environment, our strong financial performance demonstrates our commitment to continuous innovation, our commitment to our customers in 180 markets around the world, and our commitment to achieving our ‘smart, every possible’ corporate vision. ”
From the business sector,
PCSD (PC and Smart Devices Business Group): Lenovo PCSD achieved an overall revenue growth of 4.1% to RMB74.7 billion in the face of global supply shortages and poor macroeconomic conditions; Continue to sit firmly in the number one global shipments.
MBG (Mobile Business Group): Net-tax profit of RMB58.1 million for the quarter. Profit growth for the fourth consecutive quarter was the highest since the acquisition of Motorola Mobility.
DCG (Data Center Business Group): As one of the core businesses for enterprises, Lenovo Data Center Business Group achieved a 9th consecutive quarter of profit improvement, with total revenue of RMB9.3 billion.
In the quarter, Lenovo’s data center China business grew 19% year-on-year, while its non-hyper-scale data center business grew 47% year-on-year, with high-performance computing revenue up more than 30% year-on-year, software-defined infrastructure business revenue up more than 40 percent, and storage business revenue up nearly 70 percent.
Intelligent Transformation Business: Lenovo Group continues to promote the “3S strategy” of intelligent transformation on the ground implementation, from the performance point of view, has achieved initial results. The turnover of the software and services business reached RMB6.19 billion, an increase of 35% year-on-year.
Among them, DaaS Device as a Service “business grew by 725 percent year-on-year, device premium services increased by 81 percent, and IT operations management services grew by 70 percent.
In early 2019, Lenovo developed a new intelligent transformation strategy, the “3S Strategy”: from the Smart Internet of Things (Smart IoT), Smart Infrastructure, and Industry Smart (Vertical). Committed to being the leader and enabler of the intelligent age.
In June, Lenovo Group announced the creation of Data Intelligence Business Group (DIBG), and former JD CPO Blue Jay returned to Lenovo’s DIBG division.