Core Insights - Lenovo Group reported record financial results for Q2 FY 2025/26, with total revenue reaching US$20.5 billion, a 15% increase year-on-year, and adjusted net income growing 25% to US$512 million [1][6][15] - The company achieved double-digit revenue growth across all business groups and geographies, with AI-related revenue accounting for 30% of total revenue, up 13 percentage points year-on-year [2][3] Financial Performance - Group revenue for Q2 FY 2025/26 was US$20,452 million, compared to US$17,850 million in Q2 FY 2024/25, reflecting a 15% increase [6][15] - Adjusted net income rose to US$512 million from US$409 million, marking a 25% increase year-on-year [6][17] - Basic earnings per share decreased to 2.77 US cents from 2.92 US cents, a decline of 5% [6][17] Business Strategy and Growth - Lenovo's strategy focuses on hybrid AI, with significant advancements in Personal AI and Enterprise AI, aiming to personalize AI for individuals and enterprises [3][5] - The Intelligent Devices Group (IDG) reported nearly 12% revenue growth to US$15.1 billion, with a 25.6% market share in PCs, reinforcing its market leadership [11] - AI PC shipments accounted for 33% of total shipments, with Lenovo leading the Windows AI PC segment at 31.1% market share [11] AI and Innovation - The AI-related revenue mix increased significantly, driven by high-double-digit growth in AI Servers and triple-digit growth in AI PCs, smartphones, and services [2][3] - Lenovo's Personal AI strategy aims to enhance consumer demand for hyper-personalization, launching a Personal AI super agent in January 2026 [8] - The Enterprise AI strategy is designed to transform data into actionable insights, with a focus on on-premises and edge inferencing [9] Corporate Developments - Lenovo's Board declared an interim dividend of 8.50 HK cents per share, reflecting the company's commitment to delivering sustainable returns to shareholders [4] - The company has been recognized for its supply chain excellence, ranking 8th in the Gartner Supply Chain Top 25 for 2025 [21] - Lenovo's factory in Monterrey, Mexico, was added to the World Economic Forum's Global Lighthouse Network, highlighting its manufacturing capabilities [16]

Group 1 - Lenovo Group reported a revenue of $39.282 billion for the fiscal year 2025/26, representing an 18% year-on-year increase [1] - The profit attributable to equity holders reached $846 million, a 40% increase compared to the previous year [1] - Basic earnings per share were recorded at 6.89 cents [1] Group 2 - Revenue from artificial intelligence-related products accounted for 29% of total revenue, an increase of 15 percentage points year-on-year, driven by higher sales of AI devices, servers, and services [1] - Research and development expenditure increased by 8%, reflecting the company's commitment to accelerating its hybrid AI strategy [1] Group 3 - The Intelligent Devices Group saw revenue and operating profit grow by 15% and 13% respectively, benefiting from a rapid increase in AI computer shipments and strong sales of high-end products [1] - The global PC market share reached a record high of 25.6% in the second quarter [1] Group 4 - The Infrastructure Solutions Group's revenue grew by 30%, with AI infrastructure business experiencing high double-digit growth, supported by cloud and enterprise infrastructure strategies [2] - The Solutions Services Group achieved a revenue increase of 19%, setting a new historical high, with operating profit rising by 28% [2] - The second quarter revenue reached a historical high of $20.5 billion, surpassing records set during the COVID-19 pandemic, with a year-on-year growth of 15% [2]

Core Insights - Lenovo Group reported a revenue of $39.282 billion for the fiscal year 2025/26 mid-term, representing an 18% year-on-year increase, and a profit attributable to equity holders of $846 million, up 40% year-on-year [1] - The company achieved a record high in revenue for the first half of the year, with adjusted profit attributable to equity holders increasing by 24% year-on-year when accounting for non-cash items [1] - Revenue from artificial intelligence-related products accounted for 29% of total revenue, a 15 percentage point increase from the same period last year, driven by higher sales of AI devices, servers, and services [1] Financial Performance - The smart devices business group saw revenue and operating profit increase by 15% and 13% respectively, benefiting from a rapid rise in AI computer shipments and strong sales of high-end products [1] - The company achieved a record global PC market share of 25.6% in the second quarter [1] - The infrastructure solutions business group experienced a 30% year-on-year revenue growth, with AI infrastructure revenue showing high double-digit growth, supported by cloud and enterprise infrastructure strategies [1] Service Solutions - The solutions services business group reported a 19% year-on-year revenue increase, reaching a historical high, with operating profit rising by 28% [2] - Revenue from operations and project solutions accounted for 58.9% of total revenue, also a record high, driven by favorable trends in digital workplace solutions, AI, and hybrid cloud [2] - In the second quarter, the company achieved a historical revenue high of $20.5 billion, surpassing records set during the COVID-19 pandemic, with a 15% year-on-year revenue growth and an adjusted net profit margin expanding to 2.5% [2]

| 其他信息 | | | --- | --- | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公告日期，執行董事為楊元慶先生；非執行董事為朱立南先生、趙令歡先生、 黃偉明先生、Laura Green Quatela女士及Amit Midha先生；及獨立非執行董事為John Lawson Thornton 先生、Gordon Robert Halyburton Orr先生、胡展雲先生、楊瀾女士、 | | | 王雪紅女士、薛瀾教授及Kasper Bo Roersted（別名 Kasper Bo Rorsted）先生。 | | 第 2 頁 共 2 頁 v 1.1.1 第 1 頁 共 2 頁 v 1.1.1 EF001 EF001 免責聲明 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 聯想集團有限公司 | | 股份代號 | 00992 | | 多 ...

Financial Performance - The company's revenue reached a record high of $39.3 billion, representing an 18% year-over-year growth, while the profit attributable to equity holders increased by 40% to $846 million[5]. - The adjusted operating profit for the first half of the fiscal year increased by 10% to $1.39 billion, while the adjusted profit before tax rose by 24% to $1.13 billion[4]. - The group's total revenue for the six months ended September 30, 2025, was approximately $39.282 billion, representing an 18% year-over-year increase from $33.297 billion[22]. - Operating profit rose by 25% to $1.428 billion, while net profit increased by 44% to $918 million[22]. - The company reported a net profit margin increase of 0.4 percentage points to 2.2%[22]. - The company reported a net profit of $380 million for the three months ended September 30, 2025, a slight decrease of 1% compared to $383 million in the same period of 2024[29]. - The company reported a profit attributable to equity holders of $340.3 million for the three months ended September 30, 2025, compared to $358.5 million for the same period in 2024[50]. - The company reported a total comprehensive income of $1.31 billion for the period, compared to $503.14 million in the previous year[59]. Revenue Growth - AI-related revenue accounted for 29% of total revenue, up 15 percentage points year-over-year, driven by increased sales of AI devices, servers, and services[5]. - The smart devices business saw a 15% increase in revenue and a 13% rise in operating profit, benefiting from a surge in AI computer shipments and strong sales of high-end products[5]. - Infrastructure solutions revenue grew by 30%, with AI infrastructure business recording high double-digit year-over-year growth, supported by cloud and enterprise infrastructure strategies[5]. - The group's revenue reached a record high of $20.5 billion in Q2, representing a year-over-year growth of 15%[10]. - The smart devices business group saw a revenue increase of 15% and an operating profit growth of 13% in the first half of the year, driven by strong demand for personal computers and other smart devices[11]. - The infrastructure solutions business group recorded a revenue increase of 30% year-over-year, primarily due to rising demand for AI infrastructure and new cloud infrastructure business customers[13]. - The solutions services business group achieved record revenue with a year-over-year growth of 19% and an operating profit margin of 22%[15]. - Revenue from the smart devices business group reached $15.1 billion, with an operating profit of $1.1 billion, compared to $13.5 billion and $990 million in the same period last year[34]. - The Infrastructure Solutions Business Group reported a revenue of $8.38 billion, a significant increase from $6.47 billion, although it incurred an operating loss of $117.56 million[59]. Cash Flow and Expenses - Operating cash flow reached $2.8 billion, with free cash flow climbing to $1.9 billion, supporting growth across all business segments[9]. - Operating expenses for the three months ended September 30, 2025, totaled $2.50 billion, up 17% from $2.15 billion in the same period of 2024[30]. - Financial expenses decreased by 11% year-over-year, mainly due to a reduction in bank loan and overdraft interest by $9 million and a decrease in note interest by $25 million[27]. - Financial expenses increased to $357.15 million for the six months ended September 30, 2025, from $399.51 million in the same period of 2024, indicating a decrease of 10.6%[66]. - The company recognized a fair value gain of $85.78 million on financial assets for the six months ended September 30, 2025, compared to $9.15 million in the prior year[26]. Research and Development - R&D expenditure increased by 8%, underscoring the company's commitment to advancing its hybrid AI strategy and enhancing AI capabilities across its product portfolio[9]. - The company launched a comprehensive range of AI-driven devices and experiences at Lenovo Innovation World 2025, including high-performance PCs and smart devices, aligning with its vision of "AI for All"[9]. - The company is focusing on developing AI-driven solutions and enhancing its core computing capabilities as part of its "Hybrid AI for All" strategy[21]. Market Performance - The Asia-Pacific region (excluding China) saw a 30% year-over-year revenue increase, driven by strong performance in smart devices and infrastructure solutions[18]. - The Chinese market achieved a 24% year-over-year revenue growth, supported by the adoption of AI computers and new product launches[19]. - Revenue in the Americas grew by 13% year-over-year, bolstered by strong performance in personal computers and infrastructure solutions[19]. - The Europe, Middle East, and Africa market experienced an 11% year-over-year revenue increase, with personal computer shipments reaching the highest level since Q4 FY22[20]. Strategic Initiatives - The company continues to enhance its commitment to sustainability and ethical innovation by joining the Sustainable AI Alliance initiated by the French government and UNEP[10]. - Strategic investments are expected to further strengthen the company's industry leadership and maintain long-term growth momentum[21]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[51]. Financial Position - Total assets as of September 30, 2025, were $49.83 billion, with equity attributable to equity holders at $6.84 billion[43]. - The current ratio as of September 30, 2025, was 0.96, indicating a slight increase from 0.93 as of March 31, 2025[43]. - The net cash position as of September 30, 2025, was $760 million, compared to a net debt of $551 million on March 31, 2025, indicating improved financial health[47]. - The company has a loan-to-equity ratio of 0.59 as of September 30, 2025, down from 0.81 on March 31, 2025, indicating a stronger equity position[47]. - The company’s total liabilities as of September 30, 2025, amounted to $16,132,424 thousand, compared to $11,978,933 thousand, an increase of 34.5%[78]. Governance and Compliance - The audit committee has reviewed the unaudited financial performance for the six months ending September 30, 2025[99]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, except for the roles of the Chairman and CEO not being separated[100]. - John Lawson Thornton has been appointed as the Chief Independent Director with broad powers and responsibilities, including leading performance evaluations of the Chairman and CEO[101].

Core Insights - The global storage chip contract prices have experienced a rare nonlinear surge since Q2 2025, driven by the high demand for high-bandwidth memory (HBM) from AI accelerators like NVIDIA's H100 [1] - Major storage manufacturers such as Samsung, SK Hynix, and Micron are shifting production capacity from traditional PC DRAM and NAND to more profitable HBM, tightening supply for traditional PC DRAM and NAND [1][2] - Companies like Lenovo and Apple are viewed as exceptions that may benefit from this storage price uptrend due to their strong customer bases and supply chain management capabilities [1][3] Supply Chain Dynamics - The demand for high-performance SSDs and HBM has surged due to AI data centers, leading manufacturers to prioritize production for high-margin products, which has squeezed the supply of mid-range DDR and client SSDs [2] - In 2025, the global DRAM market revenue is expected to exceed $200 billion, with HBM contributing over half of the profit growth despite accounting for less than 30% of the market [2] - The average storage cost increase of 20% for an $800 laptop could raise the bill of materials (BOM) by $30-$50, potentially eroding 3-6 percentage points of gross margin if manufacturers cannot pass on costs [2] Impact on Consumer-Oriented Manufacturers - Dell, HP, and Acer, which heavily rely on the consumer market, face significant profit margin threats due to their sensitivity to storage price increases [3] - The average selling price of global consumer PCs is projected to be around $620 in 2025, making these companies vulnerable to price sensitivity in a highly competitive market [3] - Morgan Stanley's report indicates that Dell and HP are the most sensitive to rising storage prices, predicting a 2-4 percentage point decline in their PC gross margins for FY 2026 [3] Resilience of Lenovo and Apple - Lenovo and Apple are better positioned to withstand the pressures of rising storage prices due to their strong supply chain control and customer structure [4][10] - Lenovo's market share exceeds 25%, with over 65% of its revenue coming from enterprise and government clients, allowing it to pass on costs more effectively [6][7] - Apple maintains absolute control over its supply chain, benefiting from long-term contracts that ensure priority access to components, which helps it manage costs effectively [9] Competitive Advantages - Lenovo's procurement strategy, which includes multi-regional sourcing, enhances its bargaining power and allows it to secure better prices and delivery guarantees [8] - Apple's BOM structure has a lower storage cost percentage, allowing it to absorb price increases more easily, and its strong brand allows for higher pricing flexibility [9][10] - Both companies are expected to maintain or even expand their market share during this "super cycle" of storage price increases, leading to greater industry differentiation [10]

Core Viewpoint - DBS Bank maintains a "buy" rating for Lenovo (00992) and raises the target price to HKD 20 from HKD 15, citing benefits from the 2025 upgrade cycle [1] Group 1: Transition to Service-Oriented Company - Lenovo is transitioning from a technology hardware giant to a service-oriented company, leveraging its 25% market share in active PC users and strong reputation in PCs and servers to drive growth in services and solutions [2] - The company is well-positioned in the AI wave due to its extensive production expertise and product innovation [2] Group 2: 2025 Upgrade Cycle - The upgrade cycle in 2025 is expected to be driven by the migration to Windows 11 and a strong AI PC product line, with Lenovo's AI assistant "Xiao Tian" integrated with DeepSeek for enhanced functionalities [2] - AI PC shipments are projected to grow by 93% in FY3/26 and by 52% in FY3/27, increasing their share of total PC shipments to 37% and 57% respectively [2] Group 3: Server Business Growth - The Chinese server market is expected to exceed USD 140 billion by 2029, benefiting Lenovo's orders significantly [3] - Lenovo's AI server revenue grew by 155% year-on-year from April to June 2025, supported by strong IDM partnerships and the Neptune water cooling system that reduces data center power consumption by approximately 40% [3] - Lenovo holds about 35% of the AI cloud server revenue in China as of early 2025, with expectations to exceed 20% market share by 2028 as large-scale deployments and water cooling technology become standard [3] Group 4: Financial Projections - The valuation benchmark for Lenovo has been updated to the fiscal year 2027, with earnings forecasts for FY27 and FY28 raised by 10.1% and 17.1% respectively, reflecting higher assumptions for AI server shipments [3]

Core Insights - Lenovo is launching its largest sale event of the season for Cyber Monday, featuring hourly doorbusters and significant discounts on various products [1] Product Offerings - The sale will include limited-time offers on bestselling products such as ThinkBook laptops, Legion gaming PCs, and mobile workstations [1] - The event starts on November 30 at 6 AM ET and runs through December 1 [1]

Core Insights - Lenovo is launching its largest sale event of the season for Cyber Monday, featuring hourly doorbusters and significant discounts on various products [1] Product Offerings - The sale will include limited-time offers on bestselling products such as ThinkBook laptops, Legion gaming PCs, and mobile workstations [1] - The event starts on November 30 at 6 AM ET and runs through December 1 [1]

Core Insights - The report emphasizes the concept of "Chinese People Economy" as a new perspective for Chinese enterprises to navigate globalization, highlighting the shift from focusing solely on the "Chinese Economy" to a broader view that includes wealth creation by Chinese enterprises and individuals globally [1][3] - The "China+N" strategy is proposed as a means for Chinese companies to leverage their domestic advantages while expanding globally, transitioning from product-based to brand-based and from low-value to high-value operations [5][10] Group 1: New Globalization Trends - The report identifies four characteristics of new globalization: trade protectionism, geopolitical conflicts, the rise of the Global South market, and the transformation towards service-oriented and green trade [8] - It outlines four trends in Chinese enterprises going abroad: the evolution from product export to brand and ecosystem export, diversification of investment fields, the significance of the Global South markets, and the capability output of Chinese enterprises [8][10] Group 2: Policy and Strategic Recommendations - Recommendations for enhancing the "going out" strategy include establishing a comprehensive support system for overseas operations, improving compliance and risk management, and fostering local integration and ecological collaboration [5][6] - The report suggests that the "15th Five-Year Plan" should focus on expanding high-level openness and promoting a win-win cooperation model, emphasizing the need for a structural adjustment towards balanced trade [6] Group 3: Case Study of Lenovo - Lenovo is highlighted as a leading example of the "China+N" strategy, demonstrating successful global operations while maintaining a strong base in China [11][13] - The company has achieved significant growth, with a 22-fold increase in annual revenue and nearly 80% of its revenue coming from overseas markets, showcasing its leadership in the new globalization phase [13] - Lenovo's approach includes building a global supply chain network that integrates international resources with localized operations, thereby enhancing its competitiveness and market share [11][17] Group 4: Industry Collaboration and Ecosystem Development - Lenovo has facilitated the international expansion of over 250 domestic suppliers, creating a one-stop solution platform to lower the barriers for smaller enterprises to go abroad [16] - The company emphasizes the importance of community engagement and compliance in its global operations, aiming to create a symbiotic ecosystem that benefits both local markets and Chinese enterprises [14][17]