Ge Long Hui·2025-08-14 00:42Core Viewpoint - Lenovo Group reported a strong performance in Q1 of the 2025/26 fiscal year, achieving a record revenue of 136.2 billion RMB, a 22% year-on-year increase, and a significant net profit growth of 22% to 2.816 billion RMB, indicating robust operational capabilities [1][2] Financial Performance - Revenue for the first quarter reached 136.2 billion RMB, marking a historical high for the same period [1] - Net profit under non-Hong Kong Financial Reporting Standards increased by 22% to 2.816 billion RMB, while under Hong Kong Financial Reporting Standards, net profit surged by 108% to 3.66 billion RMB, primarily due to non-cash gains from stock option valuations [1] - The company emphasized that non-Hong Kong Financial Reporting Standards provide a clearer reflection of its core operational performance [1] Business Segments Growth - All three main business groups of Lenovo experienced double-digit growth, capitalizing on structural growth opportunities brought by AI [2] - The Intelligent Devices Group (IDG) generated revenue of 97.3 billion RMB, a 17.8% increase, with PC business achieving its fastest growth in 15 quarters [2] - The Infrastructure Solutions Group (ISG) saw a robust revenue growth of 35.8%, while the Solutions and Services Group (SSG) reported a 19.8% increase in revenue, with an operating profit margin of 22.2% [2] Strategic Focus - Lenovo's non-PC business revenue share increased to 47%, indicating a more balanced growth structure and providing a solid foundation for its hybrid AI strategy [2] - The company aims to leverage the "AI + terminal" synergy, using PCs as a pivot to drive collaborative growth across IDG, ISG, and SSG, creating a positive feedback loop from personal to enterprise intelligence [2] - Lenovo's Chairman and CEO, Yang Yuanqing, stated the commitment to advancing its hybrid AI strategy and enhancing operational competitiveness for sustainable growth and profit improvement [2]