Lenovo Announces Fiscal Year 2022/23: Revenue of 424 Billion, Non PC Business accounting for nearly 40%

On May 24th, Lenovo announced its full year and fourth quarter results for the fiscal year 2022/23 as of March 31, 2023: revenue for the year was 424 billion RMB, and net profit was 12.9 billion RMB; In the fourth quarter, the revenue was 86

On May 24th, Lenovo announced its full year and fourth quarter results for the fiscal year 2022/23 as of March 31, 2023: revenue for the year was 424 billion RMB, and net profit was 12.9 billion RMB; In the fourth quarter, the revenue was 86.5 billion yuan, with a net profit of 1.9 billion yuan. The proportion of non PC revenue for the entire year increased to nearly 40%.

ISG: Revenue of 66.8 billion yuan increased by 37% year-on-year

Throughout the fiscal year, ISG achieved a revenue of 66.8 billion RMB, a year-on-year increase of 37%, and operating profit surged by 1363%, officially transitioning from the transformation domain to the performance domain. The server, storage, and software businesses have all achieved rapid growth of 29%, 208%, and 25%. Globally, Lenovo's server business market share has risen from fourth to third, and its storage business has jumped from eighth to fifth.

In the AI field, Lenovo ISG can provide the AI Ready product portfolio, including Edge device that support AI, flexible heterogeneous computing platforms, and upgraded warm water cooling technology. In AI enabled retail, food service and catering industries, Lenovo is helping fast food restaurants achieve Digital transformation by applying AI to monitor food quality and time, or improving experience through natural language processing and intelligent robots; In the manufacturing industry of deepening Digital transformation, Lenovo Group cooperated with Microsoft and Nvidia to create the world's first and largest OmniverseOVX digital twin platform.

SSG: Revenue of 45.6 billion yuan, a year-on-year increase of 22%

Throughout the fiscal year, SSG's annual revenue reached a historic high of 45.6 billion RMB, a year-on-year increase of 22%, and its operating profit margin reached a high level of 21%. All sub business areas achieved strong large double-digit growth. Support service revenue increased by 14%, operation and maintenance services increased by 67%, and project and solution services increased by 13%.

Overall, the revenue of non hardware driven solutions and services has accounted for 51% of SSG's overall business.

In the future, Lenovo's SSG business will continue to expand its service portfolio to increase hardware support business penetration, and expand its digital workspace services (DWS), hybrid cloud services, and sustainable development service portfolio to meet the strong market demand for such services. Lenovo's SSG business is confident to maintain a growth rate above the market average, continue to play the role of a second growth engine, and unleash stronger growth momentum.

IDG: Revenue 337.9 billion

IDG achieved a revenue of 337.9 billion RMB in the entire fiscal year, maintaining its position as the market leader in personal computers, and maintaining a leading operating profit margin in the industry. In IDG's product portfolio, the proportion of high-end segmented products has further increased to 30%. The smartphone business has been profitable for three consecutive years. The latest market research report shows that Lenovo's Motorola mobile business has grown by 13% in Europe, 7% in Latin America, and 5% in Brazil, one of the world's top five markets. Among them, the European market share has advanced to the top five for the first time in nearly six years. Against the backdrop of the overall decline in global smartphone shipments, Lenovo's mobile business has achieved counter trend growth in all of the aforementioned markets.

Throughout the fiscal year, thanks to the increasingly strong diversified growth engine and resilient operations, we have maintained a stable profitability. "Lenovo Group Chairman and CEO Yang Yuanqing said," Faced with numerous external challenges, Lenovo Group insists on focusing on innovation, investing in the innovation field instead of decreasing, and firmly transitioning towards a service-oriented approach