Lenovo profits rebound on computer demand
Lenovo Group Ltd’s revenue and net profit rebounded in the second quarter, despite the challenges and uncertainty of COVID-19, China’s biggest personal computer vendor said on Thursday.
Working at home and online learning had fuelled the demand for computers while digital infrastructure construction also boosted its data center business income, Lenovo said.
The company’s net profit in the quarter was 1.5 billion yuan (US$214 million), a 31 percent growth year on year. Revenue hit 94.6 billion yuan, a 6.7 percent growth from a year ago.
"Our outstanding performance last quarter proves that Lenovo has quickly regained momentum from the impact of the pandemic and is capturing the new opportunities emerging from remote working, education and accelerated digitalization," Lenovo Chairman and CEO Yang Yuanqing said in a statement.
Yang is “full of confidence” about China’s rebounding economy after the pandemic and sees a bright future for the global digital economy.
The company’s major PCSD (PC and smart devices) business generated revenue growth of 10.1 percent to hit 75.1 billion yuan in the quarter.
The sales of the global tablet PC market, as a fast-growing segment, increased 26 percent from a year ago, boosted by consumers and businesses wanting affordable access to basic computing power and larger screens to facilitate remote working, learning and leisure, according to researcher Canalys.
Lenovo’s data center business posted a 20 percent revenue growth in the quarter.