Lenovo Reports Improved Profitability in Q1 2024

Fiscal Year 2024-25 Kicks Off with Strong Performance

Key Highlights from Lenovo's Q1 Earnings

Hong Kong (August 15, 2024) - Lenovo Group Limited (HKSE: LNVGY) and its subsidiaries (the "Group") today announced its first-quarter financial results for fiscal year 2024-25, showcasing substantial profitability improvements across its business operations.

Lenovo's strong performance is attributed to several factors, including a strategic focus on capturing the growing hybrid artificial intelligence (AI) market, delivering innovative products and solutions, and optimizing its operational efficiency.

Increased Profitability Across the Board

Lenovo's improved profitability is evident in all business segments. The Infrastructure Solutions Group (ISG), which includes data center and storage solutions, experienced a 3% revenue growth year-over-year alongside a 20% profitability improvement.

The Intelligent Devices Group (IDG), which encompasses personal computers, tablets, and smartphones, reported a 6% revenue increase. The Mobile Business Group (MBG) achieved double-digit revenue growth, driven by strong demand for its premium smartphones.

Hybrid AI as a Key Growth Driver

Lenovo continues to make significant progress in capturing the hybrid AI market, where it provides solutions that combine on-premise and cloud computing.

The Group's "3S" strategy, which focuses on smart infrastructure, smart devices, and smart services, has positioned Lenovo as a leader in delivering comprehensive hybrid AI solutions.

Driving Growth and Innovation

Lenovo's commitment to innovation and customer satisfaction has been a key factor in its success.

The company has invested heavily in research and development, resulting in innovative products and solutions that meet the evolving needs of its customers.

Overall Outlook and Future Prospects

Lenovo's strong Q1 performance sets a positive tone for the remainder of fiscal year 2024-25.

The Group remains focused on driving growth and profitability through its commitment to hybrid AI, innovation, and operational efficiency.