The following is the Lenovo Group’s net profit in the third quarter of 2021 was $395 million, up 53.1% year on year, forming a business group recommended by recordtrend.com. And this article belongs to the classification: Industry information.
On February 3, Lenovo Group released its financial report for the third quarter of 2021 today. In the third quarter, Lenovo Group’s revenue was US $17.25 billion, a year-on-year increase of 22.3%; its net profit was US $395 million, a year-on-year increase of 53.1%.
In the third quarter of this fiscal year, the revenue of Lenovo’s PC and intelligent device business increased by 27% year-on-year, and its global PC market share reached 25.3%, with an annual growth rate of 0.6%.
The intelligent device business group, which is composed of PC and intelligent device business and mobile business group business, outperformed the industry in the third quarter. The group’s revenue increased 25% year-on-year to $15.6 billion, while its profit before tax increased 36% to $935 million, both record highs.
The group’s revenue was $1521 million, up 10% from the same period last year.
The data center business group’s revenue grew 2% year-on-year to a record $1.634 billion, accounting for 9% of the group’s total sales. The loss further decreased by $14 million to $33 million before tax.
According to the financial report, among all products of Lenovo Group, the profit margin of software and services business was the highest. Its invoiced revenue and deferred revenue increased by 36% and 30% respectively, accounting for about 8.1% of the group’s revenue. In these three key business areas, operation and maintenance services, including device as a service (DAAS), increased by 73%. All vertical areas of the intelligent solutions division grew by 49%. Additional services continued to grow steadily, increasing by 26% in the review period.
Lenovo Group’s net cash from operating activities in the third quarter of fiscal 2021 was US $2 billion, up US $1.4 billion year on year, and its net debt decreased by US $755 million year on year. On January 20, 2001, the board of directors of Lenovo approved the issuance of China depository receipts and planned to be listed and traded on the science and technology innovation edition of Shanghai Stock Exchange. The company plans to use the proceeds for R & D, strategic investment in related industries and supplementary working capital.
In addition, Lenovo also announced a new organizational restructuring today to further promote the service-oriented strategic transformation and better grasp the development opportunities of intelligent transformation. Starting from April 1, 2021, Lenovo will integrate the service teams and capabilities of various business departments within the group to form a new business group: Solutions & services group, SSG) is committed to promoting the growth of intelligent solutions, device services, operation and maintenance services and business including device as a service (DAAS).
Yang Yuanqing, chairman and CEO of Lenovo Group, issued an internal letter today, saying that Lenovo will set up a new business group from April 1, 2021.
The new business group, called solution services business group, is led by Ken Wong, current senior vice president and Asia Pacific president of PC and smart devices. The newly established solution service business group will integrate the service teams and capabilities of various business departments within the group, promote the growth of industry intelligent solutions, equipment services, operation and maintenance services and DAAS business, and become the core driving force for the company’s transformation.
In the future, Lenovo’s core business will be composed of the following three business groups, which respectively undertake 3S strategy: intelligent devices business group undertakes intelligent Internet of things; infrastructure solutions business group undertakes intelligent infrastructure; solution services business group undertakes industry intelligence and services.
In addition, sales organizations will be divided into China and international sales organizations. Liu Jun, the current executive vice president and China president of smart devices business group, will be appointed to the leadership position in China after the expanded responsibilities, while Matt Zielinski will lead the international sales organization. (Sina Technology Mirs)
The following is the full text of Yang Yuanqing’s internal letter:
The service-oriented transformation is a firm strategy of Lenovo in the past year. In the third quarter results of fiscal year 2020 / 2021 that we just released today（ https://lenovobeijing.sharepoint.com/sites/HOME/Pages/newsDetail.aspx?detailId=11686 ) In China, the intelligent transformation business continues to make positive progress – whether it is equipment services, operation and maintenance services, DAAS, or solution services, all maintain a high growth rate, driving the overall turnover of software and services to a new record, becoming a worthy new engine of growth for Lenovo.
In order to consolidate the transformation achievements already made and make services and solutions the core competitiveness of Lenovo in the future, I announced that from April 1, 2021, Lenovo will set up a new business group: * solutions & services group *, * SSG *, composed of the current senior vice president and President of PC and smart devices Asia Pacific * Ken Wong * leadership. The newly established solution service business group will integrate the service teams and capabilities of various business departments within the group, promote the growth of industry intelligent solutions, equipment services, operation and maintenance services and DAAS business, and become the core driving force for the company’s transformation.
With the establishment of this new business group, Lenovo’s core business will be composed of the following three business groups, which respectively undertake Lenovo’s intelligent transformation * 3S * strategy:
*IDG, intelligent devices group – Intelligent Internet of things
*ISG, infrastructure solutions group (renamed from DCG, data center business group) – Intelligent Infrastructure
*SSG, solutions & Services Group solutions services business group – industry intelligence and services
The three business groups will be fully responsible for the end-to-end management of their respective business areas, and focus on product design, R & D and innovation. IDG will be led by * Luca Rossi * (current senior vice president, President of EMEA and Latin America for personal computers and smart devices), and ISG will continue to be led by * Kirk SKAUGEN *. All three leaders will report directly to me and continue to be members of Lenovo’s Executive Committee (LEC).
At the same time, in order to further promote the collaboration and cooperation between different business departments and better practice the “customer-oriented” corporate culture, we will integrate the original regional system into two new sales organization platforms
*International sales organizations (including Asia Pacific, EMEA, North America and Latin America)
The new sales organization will continue to support IDG’s existing sales system and build the capability to support all three major businesses. Through the establishment of integrated sales channels, including customer relationship management, channel management, e-commerce and other sales support capabilities, with a unified interface to enhance communication and connection with customers, partners and consumers, we will be able to respond more quickly to the changing market demand and fully release the value and role of “one association”.
Liu Jun, the current executive vice president and President of smart devices business group in China, will be entrusted with the leadership position in China after the expanded responsibilities, while the international sales organization will be led by * Matt Zielinski * (current senior vice president and President of PC and smart devices in North America). Under Matt, Amar Babu (now vice president of overseas services) will take over Asia Pacific, Francois bornibus will be in charge of EMEA on the basis of his current PCSD leadership, Sergio buniac will take over Latin America on the basis of MBG leadership, and Matt will continue to be in charge of North America during the transition period. Both Liu Jun and Matt will report directly to me and continue to be members of Lenovo’s Executive Committee (LEC).
I am looking forward to the new organizational structure to inject new momentum into our future development. At the same time, with mixed feelings, I would like to take this opportunity to announce another personnel change at the top of the group, that is, Jiang Fanke, * Gianfranco Lanci *, whom we all respect and love, will officially retire in September 2021. In the past ten years, under the leadership of Mr. Lange, Lenovo has been growing into an undisputed global champion in the global PC market. During the transition period in the next few months, while performing his duties as president and chief operating officer of Lenovo Group and continuing to be responsible for the company’s business operations, he will complete the smooth handover of organization and capability with his successor team, so as to ensure that the new team can successfully assume the important tasks in the future. We will also integrate more operation organizations and capabilities, create a unified operation organization at the group level, and provide more comprehensive and efficient management and support to all business groups and sales organizations. Here, I would like to thank range once again for creating such a team for the company, which makes the smooth development of this organizational restructuring possible.
In the future, the newly appointed leaders will release more details of their organizational structure adjustment and future development plans.
Before the above-mentioned new organizational structure and leadership adjustment come into effect on April 1, 2021, we will still carry out all the work according to the existing structure and management team of the company. In the past three quarters of fiscal year 2020 / 2021, we have overcome many challenges and achieved the best performance in history. I believe that with the joint efforts of all Lenovo people, we will be able to draw a perfect end to this fiscal year with a more impressive record high!
“Intelligence for every possibility” is Lenovo’s vision in the intelligent era, and the service and solution oriented intelligent transformation strategy is the only way to this vision. The performance of constantly refreshing historical records in the past few quarters shows that our direction is right, our road is clear, and our team is full of talents, unity, mutual trust, perseverance and innovation. Today, we have taken the first step to actively change and build a winning organizational structure. There is a long way to go. However, as long as we continue to work hand in hand and continue to climb, we will be able to reach the new peak of intelligence.
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