2021-11-18 02:08Financial Performance - Lenovo reported revenue of $17.87 billion for the three months ended September 30, 2021, representing a 23.5% increase compared to $14.52 billion for the same period in 2020[7]. - Gross profit for the same period was $3.01 billion, with a gross margin of approximately 16.8%, up from $2.25 billion and a margin of 15.5% in the prior year[7]. - Operating profit for the three months ended September 30, 2021, was $816.56 million, a significant increase from $564.51 million in the same period last year, reflecting a year-over-year growth of 44.6%[7]. - The company’s net profit attributable to equity holders was $511.99 million for the three months ended September 30, 2021, compared to $310.20 million in the same period of 2020, marking a 64.9% increase[7]. - The company reported a diluted earnings per share of $3.96 cents for the three months ended September 30, 2021, compared to $2.48 cents in the same period last year, showing a 59.7% increase[7]. - The company reported a profit of $978,050 thousand during the period, contributing to a total equity of $4,138,816 thousand[13]. - The company achieved a record net profit attributable to equity holders of $978 million, a year-on-year increase of 87%, with revenue growing by 25% to $34.8 billion[104]. Revenue Growth by Segment - The Smart Devices Business Group reported revenue of $30,004.5 million for the six months ended September 30, 2021, an increase from $24,169.6 million in the same period of 2020, resulting in a growth of approximately 24.0%[20]. - The Infrastructure Solutions Business Group generated revenue of $3,802.6 million, compared to $3,077.3 million in the previous year, reflecting a growth of approximately 23.5%[20]. - The Solutions Services Business Group achieved revenue of $2,547.6 million, up from $1,909.9 million, marking an increase of approximately 33.4%[20]. - Total revenue for the company reached $34,797.9 million, a significant increase of approximately 25.0% from $27,866.8 million in the prior year[20]. Asset and Liability Management - Lenovo's total assets increased to $42.57 billion as of September 30, 2021, up from $37.99 billion as of March 31, 2021, indicating a growth of 12.9%[9]. - The company reported a total liability of $38,435,849 thousand as of September 30, 2021, an increase from $34,380,098 thousand as of March 31, 2021, indicating a rise of approximately 12.0%[10]. - The company’s total liabilities decreased from $8,543,031,000 as of March 31, 2021, to $9,637,955,000 as of September 30, 2021, indicating a strategic focus on managing debt levels[39]. - The company’s total liabilities amounted to $15,195,359,000, an increase from $13,178,498,000 as of March 31, 2021, representing a growth of approximately 15.3%[45]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended September 30, 2021, was $2,471,820 thousand, compared to $1,561,912 thousand for the same period in 2020, reflecting a year-over-year increase of 58.0%[11]. - The company recorded a net cash outflow from financing activities of $896,841 thousand for the six months ended September 30, 2021, compared to $478,965 thousand for the same period in 2020, indicating a significant increase in cash outflow[12]. - The net cash used in investing activities was $534,959 thousand for the six months ended September 30, 2021, compared to $499,357 thousand for the same period in 2020, reflecting a slight increase in investment outflows[11]. - The company’s cash and cash equivalents increased to $3.65 billion as of September 30, 2021, compared to $3.07 billion as of March 31, 2021, indicating a growth of 18.9%[9]. Research and Development - Research and development expenses for the six months ended September 30, 2021, were $948.43 million, up from $639.10 million in the same period last year, reflecting a 48.3% increase[7]. - The company plans to significantly increase R&D investment to support sustainable profitability growth[111]. - The company launched several new products, including the TruScale as-a-service brand and the ThinkEdge AI edge platform[103]. Shareholder Returns and Dividends - The interim dividend declared per ordinary share was 8.0 HK cents, an increase from 6.6 HK cents in the previous year, resulting in a total dividend of $123,771,000 for the six months ended September 30, 2021[35]. - The company announced an interim dividend of HKD 0.08 per share, totaling approximately USD 123.8 million, an increase from USD 102.3 million in the previous year[132]. Corporate Governance and Management - The company has adopted the corporate governance code and confirmed compliance with the standards set forth in the code for the six months ending September 30, 2021[137]. - The board of directors is primarily composed of independent non-executive directors and holds quarterly meetings to review operations led by CEO Yang Yuanqing[137]. - The company has implemented its own securities trading policy for designated senior management, which meets or exceeds the standards of the adopted code[138]. - The independent non-executive directors will hold meetings at least once a year without management present to discuss relevant matters[137]. Sustainability Initiatives - The company aims to reduce greenhouse gas emissions by 1 million tons across its supply chain as part of its sustainability initiatives[113]. - The company plans to double its innovation investments to enhance competitiveness in next-generation product design and operational efficiency, with a commitment to reduce carbon emissions and achieve 90% renewable energy usage by FY 2025/26[113].