Yang Yuanqing finally relieved.
For a long time, the chairman and chief executive of Lenovo, under pressure and accusations of underperformance, promised in the second half of 2017 that the company will soon move toward profitable growth Track '.After the announcement of the new season earnings, Yang Yuanqing admitted to the 21st Century Business Herald reporter,' feel at ease '.
On February 1, Lenovo Group (00992.HK) released its third quarter results for fiscal year 2017/18. The report shows that as of December 31, 2017, the company achieved a revenue of 34.712 billion U.S. dollars in the first three quarters, an increase of 4% over the same period of last year, Single-season revenue rose 6% YoY to US $ 12.9bn, the highest in the single-season over the past three years and almost equal to its best ever.
Profit, subject to the US tax reform bill, Lenovo's quarterly one-time non-cash totaling 400 million US dollars of deferred tax assets shrink, resulting in a net loss of 222 million U.S. dollars for the first three quarters, net loss of 289 million U.S. dollars in the quarter, but Yang Yuanqing stressed that In fact, Lenovo's third-quarter profit before tax reached 150 million US dollars, up 48% year on year, which is the first time in nearly five quarters of Lenovo's pre-tax profit year-on-year increase .
Yang Yuanqing said: 'While the enterprises in transition will be under pressure in the short term, they only need to know what areas to improve and continue their infrastructure construction, team building and technical capability training.
The third wave of business into the growth track
Appears in Yang Yuanqing, Lenovo Group's performance has begun to enter the channel continued to rise.
For the personal computer and smart device business, Lenovo's revenue in the first three quarters reached US $ 24.638 billion, an increase of 5.31% over last year; the single-quarter revenue rose 8% YoY to US $ 9.25 billion, accounting for 72% of the Group's revenue. Lenovo said the business The reason why revenue performance is strong, mainly due to innovative products and better product mix, resulting in an increase in average selling price.
For the data center business, Lenovo's revenue in the first three quarters edged down 1.46% YoY to US $ 3.172bn, but its single-quarter revenue led the performance to US $ 1.2525bn in the past two years.For Lenovo and other businesses, Lenovo's revenue in the first three quarters increased 10.57% To 1.004 billion US dollars.
Lenovo's third wave of business (smart devices + cloud) is on the verge of growth. For example, AR Smart Helmet Mirage released by Lenovo in this quarter has sold nearly 500,000 units in a single season. Other emerging devices are on display at CES this year Including Smart Assistant, Google's Mirage Solo, VR camera Mirage Camera, etc. We are confident of this segment's earnings growth, "said Yang Yuanqing.
It is noteworthy that the overall performance of Lenovo Group's mobile business remains sluggish, the first three quarters of mobile services revenue was 58.99 billion US dollars, down 0.62%, a single-quarter revenue fell 5% year-on-year to 2.076 billion USdollars.An obvious contrast, Lenovo non-core devices (AR / VR, artificial intelligence-related equipment) revenue of 170 million US dollars, an annual increase of up to 123% .A between a low and a high, it will mean that Lenovo's future focus will be more emphasis By?
'Lenovo will not ignore the two major PC and smart phone markets, in particular, PC will continue to lead to ensure that it will continue to be Lenovo's profit engine.' 'Yang Yuanqing said, but he also pointed out that the smart phone market growth is becoming saturated, Especially in the Chinese market, Lenovo's strategic investment in smartphones will mainly fall into Latin America and some mature markets such as North America.
As for the emerging terminal equipment, Yang Yuanqing admitted frankly that he will devote more energy to 'including AR / VR and AI-driven terminal equipment that can occupy every consumer's household.' 'Yang Yuanqing said:' When we invest resources, we will When it comes to balancing, consider how smart terminals can make a big difference in future performance. '
'The combination of planning equipment + cloud with AI thinking is right,' said Lin Hsin-liang, principal analyst at IHS Markit, 21st Century Business Herald. 'In this area, Lenovo owns the power of cloud computing hardware and smart devices The strength of the hardware.However, in the cloud services and smart devices with a good match, and enhance the user experience of the software layer, etc., will be Lenovo's future to obtain further development of the key.
Change window period
'The strong performance of the PC business and the development of data center business exceeded expectations. The equipment and cloud business enjoyed a positive momentum while the strategy shifted from distribution to channel business to direct profit-making strategy. This constituted Lenovo's revenue and Profit before tax double growth. "Lin Hsin-liang said.
Driven by a series of changes, Yang Yuanqing pointed out that Lenovo Group is moving from a single business model to a platform that operates multiple business models, shifting from a product-oriented company to a customer-oriented company and enhancing the overall customer experience.
'Last year, 10% of each of our departmental and job positions was assessed for customer satisfaction and the proportion will increase to 20% in the next year, which is essential for driving business transformation and improvement Role. 'Yang said.
In product-oriented customer-oriented transformation process, one of the key elements is close to the customer.Yang Yuanqing frankly, in the past Lenovo for consumers and SMEs customers have taken the distribution model, layers of distribution, the user information at any ignorance, Now it is particularly important to reach customers directly.
For large clients, we emphasize direct sales; for SME clients, we have strengthened our telemarketing to establish direct channels; and for consumer customers, we emphasize online sales and new retail models, "said Yang Yuanqing.
Just a few days ago, Lenovo officially launched its first new retail store in the world. In addition to launching its own Lenovo products, Lenovo also sells its supply chain partners and globally-preferred smart products with the same online and offline prices. Its new retail company, Legend Legend Technology CEO Zhou Ming said that in the next three years will upgrade 1000 traditional stores.
'Lenovo is skipping the middle of the channel business, direct focus on users through the new retail online and offline interaction, to collect user needs, thus continuing to stimulate consumer spending.'
Relative to the platform enterprises, Lenovo-represented terminal manufacturers in the implementation of the new retail process, the needs of customers will have a different understanding. 'Lenovo professional skills, from supply chain to production and then to the customer's ability to integrate But also believe that customers will get a better experience in some relatively specialized product categories, "said Wang Jiping, an assistant vice president at IDC China.
However, the challenges also exist. "The success of the new retail market requires mature communities, logistics advantages and a complete cloud service platform. Lenovo does not currently have strong and powerful community groups. It is suggested that the first to be based on a small but basic market should be established Unique community. 'Lin Hsin-liang bluntly.