22 Could, 2025 – Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY), along with its subsidiaries (‘the Group’), right this moment introduced This fall and full yr outcomes for the fiscal yr 2024/25, reporting vital will increase in general group income and revenue. For the total yr, income grew 21% year-on-year to US$69.1 billion, marking the Group’s second-highest annual income in its historical past. Web revenue was up 36% year-on-year to US$1.4 billion on a non-Hong Kong Monetary Reporting Requirements (non-HKFRS[1]) foundation. The Group’s diversified progress engines proceed to speed up, with non-PC income combine up practically 5 factors year-on-year to 47%. All enterprise teams have been wholesome and powerful and met their strategic intent and monetary targets, and all gross sales geographies gained double-digit income progress year-on-year, reflecting the power of the Group’s diversified companies and resilient world footprint.
The outcomes weren’t solely pushed by the Group’s concentrate on executing a transparent technique, but additionally its end-to-end built-in world operations (design, demand forecasting, procurement, manufacturing, advertising and marketing, gross sales, and companies), ODM+ manufacturing mannequin, and world assets/native supply mannequin. Over the previous 20 years of working a world enterprise, Lenovo has established a producing footprint that boasts 30+ manufacturing websites (both in-house or outsourced) in 11 totally different markets around the globe. The mixture of those provides the Group most flexibility and resilience to navigate by means of uncertainties and be extra adaptive to the market situations.
Lenovo continues to prioritize funding in innovation, with R&D bills up 13% year-on-year to US$2.3 billion. The previous yr noticed a number of key bulletins, investments, and milestones from the Group as a part of its hybrid AI technique. These embody the launch of AI PCs the place Lenovo is now primary globally within the Home windows AI PC class; the launch of the first foldable cellphone with Moto AI; hypergrowth within the AI server enterprise; the creation of core options and companies capabilities with Lenovo Hybrid AI Benefit, and most lately the launch of the Group’s first private and enterprise AI tremendous brokers at its Tech World occasion in Shanghai.
Wanting forward, Lenovo stays assured that its concentrate on innovation and hybrid AI, along with its globally balanced enterprise and a versatile, resilient provide chain is not going to solely preserve but additionally improve its market competitiveness.
Lenovo’s Board of Administrators declared a last dividend of three.9 US cents or 30.5 HK cents per share for the fiscal yr ended March 31, 2025.
Chairman and CEO quote – Yuanqing Yang:
“This has been one among our greatest years but, even within the face of serious macroeconomic uncertainty. We achieved robust top-line progress with all our enterprise teams and gross sales geographies rising by double digits, and our bottom-line elevated even quicker. Our technique to concentrate on hybrid AI has pushed significant progress in each private and enterprise AI, laying a robust basis for management on this AI period. With 20 years of main a world enterprise and navigating challenges, I’m assured that our operational excellence and continued funding in innovation is not going to solely maintain however strengthen our competitiveness.”
Monetary Highlights:
This fall FY24/25 Group Efficiency: Income and non-HKFRS[1] web revenue enhance over 20%, double-digit income year-on-year progress throughout all companies
- Group income grew 23% year-on-year to US$17 billion, with double-digit year-on-year income progress throughout all companies.
- Web revenue was up 25% year-on-year on a non-HKFRS[1] foundation to US$278 million.
- The Clever Gadgets Group additional enlarged its PC market management and expanded the hole to the quantity two participant year-on-year by an additional level. On the similar time, smartphone income outgrew the market by 12 factors and its world smartphone rating by income is now quantity 4 in all markets exterior of China.
- The Infrastructure Options Group achieved profitability for the twond consecutive quarter, with income hypergrowth of greater than 60% year-on-year.
- The Options and Companies Group delivered 18% income progress year-on yr and a document working margin of 27%.
Full 12 months efficiency:
Clever Gadgets Group (IDG): Market management strengthened, successful in private AI
FY24/25 efficiency:
- Total IDG income grew 13% year-on-year to US$50.5 billion, with an working margin within the traditionally excessive vary of greater than 7%.
- PCs expanded their market management, enlarging the hole to the quantity two participant by nearly 1 level to three.6 factors, and maintained industry-leading profitability.
- AI PCs exceeded the amount goal for the yr, with Lenovo now main globally within the Home windows AI PC class.
- Smartphone income reached its highest level for the reason that acquisition of Motorola Mobility, with hypergrowth of 27% year-on-year. There was strong progress in Asia Pacific and EMEA markets, complementing the normal strongholds of Latin America and North America.
- The pill enterprise achieved double-digit year-on-year progress in gross sales quantity.
- Revolutionary type components have been launched all through FY24/25 throughout Lenovo’s AI PC and smartphone portfolio, together with the ThinkBook Plus Gen 6 with a rollable show, the Legion Go S handheld gaming console, and the ultra-premium ThinkPad and Yoga Aura Editions. Motorola expanded its management in foldables with the newest motorola razr, now enhanced with moto AI capabilities.
- Wanting forward, IDG will proceed to construct an AI-driven functions ecosystem to ship seamless cross-device, cross-ecosystem experiences, in addition to additional develop the AI tremendous brokers that lately launched on the Group’s Tech World occasion in Shanghai.
Infrastructure Options Group (ISG): Hypergrowth, worthwhile within the 2nd half of the yr, driving hybrid infrastructure
FY24/25 efficiency:
- ISG noticed a yr of hyper-growth with income up 63% year-on-year to a document US$14.5 billion. Working margin was considerably improved and ISG broke even for the twond half of the fiscal yr.
- The Cloud Companies Supplier (CSP) enterprise continued to scale by means of the yr with self-sustaining profitability.
- The Enterprise and SMB (E/SMB) enterprise had robust momentum with income up 20% year-on-year to a document excessive.
- The AI server enterprise additionally achieved hypergrowth because of the rising demand for AI infrastructure, with Lenovo’s industry-leading Neptune™ liquid cooling options as a key power behind this speedy progress.
- Wanting forward, ISG will proceed executing its CSP and E/SMB technique, simplify its product portfolio, strengthen its go-to-market capabilities, and improve operational resilience to drive regular, balanced progress throughout all geographies and sustainable profitability.
Options and Companies Group (SSG): Excessive margin and excessive progress transformation engine, unleashing hybrid AI Benefit
FY24/25 efficiency:
- SSG additional solidified its function because the Group’s transformation engine, with income rising 13% year-on-year to US$8.5 billion, with an working margin of 21.1%.
- The assist companies enterprise continued its regular progress, elevating the {hardware} consumer expertise.
- The options and ‘as-a-service’ enterprise grew even quicker, now accounting for practically 60% of SSG’s income, with AI choices particularly producing momentum.
- Wanting forward, SSG will proceed to construct capabilities inside the Lenovo Hybrid AI Benefit framework, whereas additionally increasing and deepening its portfolio of enterprise options.
ESG highlights
Lenovo made progress on its environmental, social and governance commitments in FY24/25 and is on-track to succeed in its 2030 emissions discount targets, aligned to the Science Based mostly Targets initiative. Lenovo is proud to have obtained world recognitions prior to now yr such because the Gold Award within the Most Sustainable Firms/Organizations class of the Finest Company Governance and ESG Awards organized by the HKICPA in addition to the Platinum Medal by EcoVadis, inserting Lenovo within the prime 1% of all firms rated by EcoVadis worldwide. Lenovo additionally obtained AAA recognition in MSCI’s ESG Evaluation Scores and A-list recognition from CDP for Local weather Change Management (A) and Water (A-). Embracing individuals of all backgrounds and talents is vital to Lenovo’s imaginative and prescient of offering smarter expertise for all. In 2024, Lenovo was honored as a “Finest Office for Incapacity Inclusion” for the fourth yr within the US, with growth to Brazil and the UK. As a part of Lenovo’s concentrate on offering Smarter AI for All, the corporate has adopted governing ideas that bolster the accountable, moral, and protected growth, deployment, and utilization of AI. Lenovo has fortified its inner governance by committing to public initiatives just like the European Fee’s AI Pact. Extra particulars on the corporate’s progress will likely be launched in its annual ESG report printed on the finish of June.
[1] Non-HKFRS measure was adjusted by excluding web honest worth adjustments on monetary property at honest worth by means of revenue or loss, amortization of intangible property ensuing from mergers and acquisitions, mergers and acquisitions associated expenses, acquire on deemed disposal of a subsidiary, impairment and write-off of intangible property, one-time revenue tax credit score; restructuring and different expenses, acquire on remeasurement of a written put choice legal responsibility, honest worth change on spinoff monetary liabilities referring to warrants, and notional curiosity of convertible bonds; and the corresponding revenue tax results, if any.
About Lenovo
Lenovo is a US$69 billion income world expertise powerhouse, ranked #248 within the Fortune International 500, and serving thousands and thousands of consumers daily in 180 markets. Targeted on a daring imaginative and prescient to ship Smarter Know-how for All, Lenovo has constructed on its success because the world’s largest PC firm with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized units (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, excessive efficiency computing and software program outlined infrastructure), software program, options, and companies. Lenovo’s continued funding in world-changing innovation is constructing a extra equitable, reliable, and smarter future for everybody, all over the place. Lenovo is listed on the Hong Kong inventory change beneath Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY). To seek out out extra go to https://www.lenovo.com, and browse concerning the newest information by way of our StoryHub.
