Lenovo Group (00992.HK) released the first quarter of 2011/18 fiscal year results, as of June 30, 2017 only three months, the Group’s revenue of $ 1001.2 million , Down 0.4% from $ 10.56 billion in the same period last year. The Group’s loss before tax was $ 69 million, compared with $ 206 million in the same period last year and $ 22 million in corporate equity holders.
According to the announcement, the Group’s gross profit fell 11% YoY to US $ 1.365 billion, compared to the same period due to the increase in the cost of parts due to the supply constraints of various products for the fiscal year ended June 30, 2017. Down 1.7 percentage points to 13.6% year on year. Operating expenses increased 6% to $ 1,371 million, the cost was 13.7%, compared with 12.8% for the same period last year. Operating expenses and expenses The increase was mainly due to lower costs incurred in the year-on-year sale of non-core properties. The Group did not include accounting earnings of non-cash expenses related to M & A, which accounted for US $ 5 million during the same period last year. The Group did not include accounting treatment for non-cash expenses related to M & A and the sale of property Profit before tax was $ 152 million. The Group’s equity holders accounted for a loss of $ 72 million and a profit of $ 173 million for the same period last year.
The performance of the product business group
In the personal computer and intelligent equipment group, the income of $ 7,050,000,000, year on year, accounting for about 70% of the Group’s overall revenue. Business Group’s profit before tax fell 21% to $ 291 million. Profit before tax fell 1.1 percentage points to 4.2% year on year, mainly due to the shortage of parts and the impact of rising costs.
Global PC sales fell 6% to 12.4 million, the market fell 3% year on year. According to industry estimates, in the quarter, Lenovo’s market share fell 0.6 percentage points to 20.4% year on year. In the fiscal year, the Group’s personal and tablet sales fell 7% year on year to 14.5 million, the market fell 3% year on year.
In the mobile business group, revenue rose 2% year on year to 1.746 billion US dollars, the mobile business accounted for about 17% of the Group’s overall revenue. Excluding non-cash charges related to M & A arising from accounting treatment, the Group’s operating loss before taxation was $ 129 million during the period under review.
In the data center business group, data center business revenue accounted for about 10% of the Group’s overall revenue, as the transformation plan is still in progress, so the data center business affected, its revenue fell 11% to $ 971 million. For the quarter, the Group’s data center business operating loss before tax was $ 114 million, excluding the non-cash charges associated with M & A arising from accounting treatment.
In Lenovo’s venture capital and other aspects, ecosystems, cloud services and other products, including consumer electronics businesses in earlier acquisitions, earned $ 290 million, or about 3% of the Group’s overall revenue. As of the review quarter, the Group has made progress in expanding its ecosystem business, with the number of subscribers registered with Lenovo accounts totaling 225 million.