Financial Highlights
Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) announced its Q4 and full-year results for the fiscal year 2024/25 today, reporting significant increases in overall group revenue and profit. The tech giant achieved impressive growth despite market challenges, demonstrating the strength of its diversified business model.[1]
For the full fiscal year, Lenovo's revenue grew 21% year-on-year to US$69.1 billion, marking the Group's second-highest annual revenue in its history. Net income increased by 36% year-on-year to US$1.4 billion on a non-Hong Kong Financial Reporting Standards basis.[1][2]
Business Diversification Driving Growth
The Group's diversified growth engines continue to accelerate, with non-PC revenue mix increasing by nearly five points year-on-year to 47%. All business groups met their strategic and financial goals, with all sales geographies achieving double-digit revenue growth year-on-year. This performance reflects the strength of Lenovo's diversified businesses and resilient global footprint.[1][2]
Strategic Advantages
Lenovo attributes its strong results to several key factors:
Global Operations Excellence
The company's end-to-end integrated global operations, covering everything from design and demand forecasting to manufacturing and sales, played a crucial role in its success. Over the past 20 years, Lenovo has established a manufacturing footprint that includes more than 30 manufacturing sites (both in-house and outsourced) across 11 different markets worldwide.[1]
Flexible Supply Chain
The combination of Lenovo's ODM+ manufacturing model and global resources/local delivery model provides maximum flexibility and resilience. This approach helps the company navigate through uncertainties and adapt quickly to changing market conditions.[2]
Investment in Innovation
Lenovo continues to prioritize investment in innovation, with R&D expenses up 13% year-on-year to US$2.3 billion. The company maintains a strong balance sheet to support future growth, with cash balance approaching US$4 billion as reported in their Q3 FY24/25 results.[2][5]
Looking ahead, Lenovo remains confident that its focus on innovation and hybrid AI, together with its globally balanced business and flexible, resilient supply chain, will not only maintain but also enhance its market competitiveness in the coming years.[2]
