TapTechNews August 15th news, Lenovo Group announced in the Hong Kong Stock Exchange today that in the first quarter of fiscal year 2025 (April-June 2024), its revenue was 15.45 billion US dollars (TapTechNews note: currently about 110.365 billion yuan), compared with 12.9 billion US dollars in the same period last year (currently about 92.15 billion yuan), an increase of 20% year-on-year.
In the first quarter, the net profit was 243.4 million US dollars (currently about 1.739 billion yuan), compared with 177 million US dollars in the same period last year (currently about 1.264 billion yuan), with a year-on-year increase of 38%, and the estimated 231 million US dollars (currently about 1.65 billion yuan).
Lenovo Group said that this quarter set a new performance milestone, mainly due to the unprecedented opportunity brought by the hybrid artificial intelligence and the continuous success of its service-led transformation. Therefore, Lenovo Group's revenue reached 15.4 billion US dollars, an increase of 20% year-on-year, while the profit attributable to equity holders increased by 38% to 243 million US dollars. In addition, the group's research and development expense increased by 6% to support the investment in the above key artificial intelligence innovations.
The Smart Devices Group, which consists of personal computers, tablets, smartphones and other smart device businesses, saw its revenue growth in the reviewed quarter better than expected, reaching 11%, mainly benefiting from the recovery of commercial sales and the shift in demand to high value-added products. The business group increased its high-end personal computer portfolio by 3.4 percentage points and obtained nearly 70% of personal computer income from the commercial division, which had a positive impact on the average selling price. The operating profit of the Smart Devices Group increased by 27% year-on-year, and the segment profit margin increased by 92 basis points year-on-year to 7.3%, which is at the upper limit of its historical range.
Lenovo Group said that it has increased its investment in the transformation plan to seize the opportunities in the emerging artificial intelligence computing industry. Before the end of this quarter, it launched a strategic initiative to launch a new AIPC product using Arm architecture, aiming to establish a positive trend for the future average selling price and sales portfolio.