Lenovo Group's 2023/24 Fiscal Year Results and Outlook
TapTechNews May 23 news, today Lenovo Group announced the fourth quarter and full-year results of the 2023/24 fiscal year ending March 31, 2024: In the fourth quarter of the 2023/24 fiscal year, the revenue was 99.4 billion yuan, with a nearly 10% year-on-year increase; the main businesses fully recovered growth, and the net profit was 1.78 billion yuan, with a 118% year-on-year increase; the proportion of non-PC businesses accounted for nearly 45%, a record high.
After the earnings release, Lenovo Group CEO Yang Yuanqing sent an all-staff letter stating, Looking at the entire fiscal year, although under the multiple challenges of the macro environment, the group's overall turnover and profit decreased year-on-year, but looking deeper, Lenovo achieved a nearly 6% year-on-year growth in turnover in the second half of the fiscal year, and the net profit margin has turned from a year-on-year decline in the first half to a flat.
Yang Yuanqing also said that Lenovo's annual R & D expense ratio reached a record high of 3.6%, and the total number and proportion of R & D personnel also reached a new high, fully reflecting our firm commitment to R & D and innovation, We can now say that Lenovo has successfully passed through the industry's downward cycle and is seizing new growth opportunities.
TapTechNews attached the content of the all-staff letter:
Hello everyone! Today we released the fourth quarter and full-year performance report of Lenovo Group in the 2023/2024 fiscal year.
After we resumed the year-on-year growth in turnover in the third quarter, we further accelerated this momentum in the fourth quarter: The overall group turnover increased by nearly 10% year-on-year, while the net profit doubled. Last quarter we said that all main businesses are expected to fully recover year-on-year growth, and we not only did it, but did better than expected. MBG, ISG and SSG all achieved double-digit growth, promoting the turnover ratio of non-PC businesses to increase to a record high of nearly 45%.
Specifically, our SSG achieved high double-digit year-on-year growth and a 21% high operating margin. On the basis of a record-high penetration rate of support services for personal computers and the rapid growth of businesses such as hybrid cloud and digital office space solutions, SSG is creating AI-native or embedded solutions and services to create greater value.
In terms of ISG, our turnover increased significantly compared to last year, with a growth rate of 15%. Although ISG still needs to be improved in terms of profitability at present, we have already formulated a solid profit improvement plan, and we will also strengthen our position in the top three in the field of AI infrastructure by strengthening the product portfolio and business opportunity conversion.
In the IDG aspect, we expanded the leading advantage in the global PC market and maintained the industry-leading profit level. We are the first in four of the five major global markets, and North America also set a new high in share. The sales and turnover of smart phones achieved double-digit year-on-year growth and far exceeded the market. IDG will fully lead the global AI personalized PC revolution and continue to innovate, promoting AI devices to extend to colorful terminal devices such as mobile phones, tablets, AR/VR, etc., while realizing the coordination of multiple devices.
Looking at the entire fiscal year, although under the multiple challenges of the macro environment, the group's overall turnover and profit decreased year-on-year, but looking deeper, we achieved a nearly 6% year-on-year growth in turnover in the second half of the fisca l year, and the net profit margin has turned from a year-on-year decline in the first half to a flat. It is particularly noteworthy that our annual R & D expense ratio reached a record high of 3.6%, and the total number and proportion of R & D personnel also reached a new high, fully reflecting our firm commitment to R & D and innovation.
Friends, we can now say that Lenovo has successfully passed through the industry's downward cycle and is seizing new growth opportunities. At the TechWorld in Austin last October, we shared Lenovo's hybrid AI strategy. And at the Shanghai TechWorld last month, we demonstrated the 3S full-stack AI capabilities that support this strategy, especially the release of the first batch of AI personalized PCs for the Chinese market. Such rapid progress makes us full of confidence and very optimistic about the new fiscal year. With the vision of filling the world with AI, with a clear strategy, powerful execution, continuous innovation and excellent operation, we will definitely become the leader in the AI era!
Thank you all!