Lenovo Group opened 2.5% higher after earnings, with a 40% increase in profit for the first half of the fiscal year, and disclosed AI-related revenue for the first time

Lenovo Group (00992.HK) opened 2.5% higher this morning (20th), at HKD 9.87. The pre-market trading volume was 1.788 million shares, involving HKD 17.576 million.

Lenovo Group disclosed its interim results for the period ending September this morning, reporting a record revenue of USD 39.282 billion, up 18% year-on-year, and a net profit of USD 846 million, up 40.5% year-on-year; earnings per share were HKD 0.0689. An interim dividend of HKD 0.085 was declared, unchanged from the previous year. Adjusted profit attributable to equity holders increased by 24% year-on-year to USD 901 million.

Notably, Lenovo Group disclosed its revenue from artificial intelligence-related businesses for the first time. According to the report, AI business accounted for 30% of total revenue in the second fiscal quarter ending September, an increase of 13 percentage points year-on-year. In the smart device sector, revenue from AI terminal devices accounted for 36% of overall revenue in the Intelligent Devices Group (IDG). In terms of infrastructure, AI server revenue achieved high double-digit growth, and revenue from the Neptune liquid cooling technology business grew by 154% year-on-year. Additionally, AI service revenue within the Solutions and Services Group (SSG) achieved triple-digit growth year-on-year.

Lenovo Group Chairman and CEO Yang Yuanqing stated that the group will seize the development opportunities brought by hybrid artificial intelligence and continue to create sustainable returns for shareholders. (ha/)