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About LENOVO GROUP LIMITED

Lenovo Group tops the worldwide PC market, ahead of HP Inc. and Dell Technologies, and it operates competitive phone and server businesses. Through a series of acquisitions, the Hong Kong-based company is focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. Lenovo has resurrected the Motorola brand in smartphones. Besides ThinkPad-branded commercial PCs, Lenovo turns out tablets, and software. Its sales are evenly sourced from the major world markets of China, Asia Pacific, America, and Europe-Middle East-Africa (EMEA).

Operations

Lenovo operates in two reportable segments: Intelligent Devices Group and Data Center Group.

Lenovo's Intelligent Devices Group includes the company's biggest business, the PC and Smart Devices unit, which accounts for about 80% of the company's revenue. It continues to lead the sector, with record PC market share of nearly 25%, continuing to extend its leadership as the #1 PC company in the world and with sustained industry-beating profitability. Intelligent Devices Group also includes the Mobile business, which accounts for some 10% of revenue.

The Data Center Business Group, about 10% of revenue, offers servers, storage, networking, software, and services.

Geographic Reach

Lenovo's logistics teams work closely with logistics partners to ship products responsibly. Lighter and smaller products, more compact and reusable packaging materials, bulk shipping alternatives, and regional distribution facilities allow for lighter loads, load consolidation, and full truckload shipments. The company sold less than 10% of its goods and services to its five largest customers. T

he company spent $796 million in 2020 and $708 million in 2019 on advertising and promotional expenses.

Financial Performance

After sales dipped in 2016 and 2017, it rebounded back the next two years. Profits also bounced back in 2019 and 2020 after a loss in 2018.

In 2020 (ended March), revenue fell by about 1% to $50.7 billion, almost the same as the record revenue in 2019. The unprecedented outbreak of COVID-19 and the subsequent factory shutdowns had a material impact on the Group's revenue which dropped 9.7 percent year-on-year in the last quarter of the fiscal year.

Profit jumped by 22% to $804.5 million in fiscal 2020, brought about by lesser cost of sales.

Lenovo had $3.6 billion in cash and equivalents in 2020 compared to $2.7 billion from the year before. In 2020, operations generated $2.2 billion, investing activities used $957 million, and financing activities used another $238 million.

Strategy

Lenovo continues to execute its strategy to be the leader and enabler of Intelligent Transformation. The company has the vision of bringing smarter technology to all – through Smart Infrastructure, Smart Verticals, and Smart IoT. This "3S" strategy, in parallel with its customer-centric positioning, has led to a higher Software and Services attach rate. The Software and Services business is considered a strong, long-term growth catalyst for profitable growth.

Smart infrastructure provides the computing, storage, and networking power to support smart devices. The company launched its next-generation data center solutions in SDI and expects it to remain a future growth catalyst. These new solutions, which include collaboration with several partners based on the ThinkAgile platform, have grown revenue at a double-digits rate during the fiscal year under review.

The company will continue to invest in Smart IoT, consisting of a network of many touchpoints for the connected world we live in. Specifically, the Lenovo's investments will accelerate in the area of edge computing, cloud, big data, and AI in vertical industries to deepen its strategic transformation and further accentuate its core competencies. These investments aim to strengthen the company's capability as a competitive end-to-end solution provider in the era of Intelligent Transformation.

Company Background

Liu Chuanzhi, an engineer at the Chinese Academy of Sciences who wrote industry research reports, established Legend Group Holdings Co. in 1984 in Beijing. Backed by a modest investment from the academy, Liu, who went on to become something of an entrepreneurial hero in China, and 10 other engineers were given a green light to form a retail business. They first bought and sold items ranging from TVs to roller skates, but later focused on distributing computer products and eventually moved into manufacturing PCs for AST Research. Legend introduced its first proprietary product, a Chinese character system for PCs, in 1985.

In 1988 the company formed Legend Holdings Limited, which was originally a Hong Kong-based PC distributor. The following year the parent company began designing and manufacturing motherboards and added systems integration services to its offerings. In 1990 China reduced import tariffs, a move that opened the trade door for companies such as IBM and Compaq. That year Legend Group Holdings began making its own brand of PCs.

In the 2000s, Lenovo bought computer and mobile phone operations from US companies and became the top PC maker.

LENOVO GROUP LIMITED

23/F TAIKOO PLACE LINCOLN HSE
979 KING'S RD
QUARRY BAY, HK
Phone: 852 2590 0228

Firm Stats

Employer Type: Publicly Owned
President and COO and President, PC and Smart Devices: Gianfranco Lanci
EVP and CFO: Wong Wai Ming
Chairman and CEO: Yang Yuanqing

Major Office Locations

QUARRY BAY, HK

Other Locations

Burlingame, CA
San Diego, CA
San Jose, CA
Sunnyvale, CA
Lawrenceville, GA
Chicago, IL
Fort Wayne, IN
Lowell, MA
Marlborough, MA
Morrisville, NC
Horsham, PA
Plymouth Meeting, PA
Pasadena, TX
Orem, UT
Beijing, China
Changchun, China
Chengdu, China
Chongqing, China
Dazhou, China
Guangan, China
Hangzhou, China
Huzhou, China
Jinan, China
Nanchong, China
Qingdao, China
Shanghai, China
Suining, China
Taiyuan, China
Yuxi, China
Zhangqiu, China
Markham, Canada
Montréal, Canada
Taipei City, Taiwan
Machelen (Bt.), Belgium
Hesperange, Luxembourg