Computing, Gadgets & Electronics, Telecom & Wireless

China's Lenovo Gained Net Profit Of USD55 Million In Q1 2010

Chinese electronics and PC maker Lenovo has published its financial report for the first quarter of 2010 fiscal year ended June 30, stating that it gained net profit of USD55 million.

From April to June 2010, Lenovo's worldwide sales of PC increased by 48.1% year-on-year and its comprehensive sales increased by about 20.9%. The group's comprehensive revenue increased by 49.6% to USD5.1 billion; its gross profit increased by 38.6% year-on-year to USD523 million; and its gross margin was 10.2%.

During the reporting period, Lenovo's operating profit was USD82 million, not including the USD1 million cost for restructuring, five times as that in the same period in 2009. The group's pre-tax profit was USD75 million; its net profit attributable to shareholders was USD55 million; and its profit per share was USD0.57. By June 30, 2010, the group's net cash reserve was USD2.2 billion.

Following its purchase of Lenovo Mobile at the beginning of 2010, the group launched its new smartphone product LePhone, which is Lenovo's first flagship product for its development of the mobile Internet terminal business.

According to Liu Chuanzhi, chairman of Lenovo Group, the company gained a double-digit market share in the worldwide PC market for the first time in the first quarter of the 2010 fiscal year; and its mobile Internet business started with a good performance, which marked a good beginning for a new fiscal year.

Yang Yuanqing, chief executive officer of Lenovo Group, said that with the powerful implementation of decided strategies, they are confident in achieving fast growth in the future by enhancing their innovation, business model, and brand.

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