Ge Long Hui·2025-08-13 23:53Core Viewpoint - Lenovo Group reported a strong financial performance for the first quarter of the fiscal year 2025/26, achieving record revenue and significant profit growth despite geopolitical challenges [1][2]. Financial Performance - The group's revenue increased by 22% to $18.8 billion, marking the highest first-quarter revenue in its history [1]. - Profit attributable to equity holders rose by 108% year-on-year to $505 million, while non-HKFRS profit increased by 22% to $389 million [1]. - The operating profit margin was 3.4% and the net profit margin was 2.1% for the first quarter [2]. Business Segments - All three business groups—Infrastructure Solutions, Solutions Services, and Intelligent Devices—recorded strong double-digit year-on-year revenue growth [2]. - The Intelligent Devices group achieved the fastest year-on-year revenue growth in 15 quarters, with a global PC market share of 24.6% [2]. - The smartphone business has seen double-digit revenue growth for seven consecutive quarters [2]. Strategic Initiatives - The company is focusing on a dual strategy of robust cloud infrastructure and enterprise infrastructure, leading to significant revenue growth in the Infrastructure Solutions group [2]. - Revenue from AI server business more than doubled year-on-year, reflecting the strength of the company's AI-driven solutions [2]. - R&D investment increased by 10%, enhancing the company's AI capabilities and positioning it to capitalize on opportunities in the AI sector [3]. Market Position and Resilience - The company has improved its profit margins through an optimized product mix and enhanced service offerings, while maintaining competitiveness despite tariff changes [2]. - Lenovo's global manufacturing capabilities and unique ODM+ model have strengthened its supply chain resilience and cost efficiency [2]. - The company is well-prepared to address macroeconomic uncertainties and meet diverse global customer needs [3].