Lenovo Group published its 2012/13 financial report ended March 31, 2013, stating that the group's sales reached USD33.87 billion during the reporting period, a year-on-year increase of 15%; and its net profit was USD635 million, a year-on-year increase of 34%.
According to the report, the good performance of the group was mainly attributed to the continuous growth of the PC business and the strong increase in mobile Internet business. During the 2012/13 financial year, Lenovo Group's combined income reached USD33.87 billion, representing an increase of 15%. Its net profit before taxes was USD801 million, an increase of 38%, and its net profit attributable to shareholders was USD635 million, an increase of 34%.
By business, the group's revenue from PC and related businesses was USD29.75 billion, a year-on-year increase of 9%; its revenue from MIDH business which was mainly contributed by smartphone sales in China was USD3.04 billion, a year-on-year increase of 105%; and its revenue from other products and services was USD1.09 billion.
During the reporting period, Lenovo Group's gross profit increased by 18% year-on-year to USD4.073 billion, while its gross margin increased from 11.7% to 12%. The growth was led by effective profit rate management, scale brought by sales increases, and strict expense control. Meanwhile, the group's operating expense increased by 14% to USD3.27 billion.
By region, China contributed 43% of the overall revenue of Lenovo Group. During the reporting period, Lenovo's operating profit in China increased to USD678 million; its operating profit rate was 4.7%; and the operating profit rate of its Chinese PC business was 6.2%. The group's Asia Pacific and Latin America markets contributed 20% of the overall revenue; the Europe, Middle East, and Africa markets contributed 22%; and the North America market contributed 15%.