Lenovo Group released its first-quarter results on June 16th, 2018, with revenue of 11.91 billion US dollars in the quarter, up 19% year-on-year; net profit of 77 million US dollars, a loss of 72 million US dollars in the same period last year, Turning losses into profit.
According to Gartner data, Lenovo Group returned to the top position in the global personal computer market, achieving a 19% year-on-year growth. In the mobile business, Lenovo repositioned its business focus, focused on developing core markets such as Latin America and North America, and through streamlining product portfolios. Reduce business complexity and reduce related expenses. The mobile business's operating loss before taxation was US$65 million, which was also narrower than the loss of US$129 million a year ago.
In this regard, Yang Yuanqing issued an internal letter: "The curve has passed, Lenovo began to fully accelerate!"
In the letter, Yang Yuanqing said: 'At this time last year, I told you that we have seen the turning point. Now, we have successfully crossed the inflection point, entered a new stage of growth, and advanced at full speed, this with each team, each Colleagues are inextricably linked to the firm implementation of the transformation strategy.'
Attached to Yang Yuanqing's internal letter:
The corner has passed, Lenovo began to accelerate all the way!
Colleagues,
I am very happy to share the financial report for the first quarter of the 2018/19 fiscal year. From the performance point of view, this is a breakthrough quarter.
At this time last year, I told you that we have seen the turning point. Now, we have successfully crossed the inflection point, entered a new stage of growth, and advanced at full speed. This is a firm implementation of the transformation strategy with each team and each colleague. Inseparable.
Our core PC business is targeting high growth and high-end markets, and has achieved strong growth. Among the top five PC manufacturers, we have the fastest growth. In the mobile business, we reduce operating expenses, optimize product portfolio, focus on Strategies for competitive markets and profitable specific markets are showing results. Data center operations are steadily moving towards sustainable profitable growth, with pre-tax profit levels rising for the fifth consecutive quarter. These are all three-wave strategies. Initial results, Lenovo has already embarked on the curve that must be experienced in the transformation process.
Our turnover is close to US$12 billion, and we have achieved growth for the fourth consecutive quarter, up 19% year-on-year. The pre-tax profit has shown the same growth momentum, reaching US$113 million, an increase of US$182 million compared with the same period last year. Benefit from the significant improvement in the profitability of all our main businesses. If you want to use a word to summarize the performance of the first quarter, I think it should be 'accelerated' - the transformation strategy accelerates execution, and the performance curve accelerates.
Our transformation has been going on for a while, and today's earnings report sends a clear signal: Lenovo has opened a new chapter in the growth story. Thanks to every colleague for his contribution to the new fiscal year. Our transformation process is not Smooth sailing, difficulties, resistance, doubts, and your practical actions and outstanding performance prove that our strategic direction is correct. As long as we persist in execution, we will usher in high-speed growth for many years, just like many What colleagues have experienced in 2009-2014.
I look forward to working with you to experience this extraordinary transformation journey. With the deepening of the transformation, let us take advantage of the trend, fearless, and accelerate the impact of the second quarter's performance!
thank you all!
Chairman and CEO of Lenovo Group Yang Yuanqing
August 16, 2018