Lenovo sees signs of recovery across technology sector – delivers quarter-on- quarter performance improvements and further accelerates AI leadership

November 16, 2023– Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries
(‘the Group”), today announced second quarter results reporting Group revenue of US$14.4 billion and
net income of US$273 million on a non-Hong Kong Financial Reporting Standards (HKFRS)[1] basis. Gross
profit margin improved year-on-year to 17.5%, a record high for a second quarter. The Group’s
diversified growth engines continued to deliver strong performance, with revenue from the non-PC
businesses accounted for 40% of Group revenue, up three points year-on-year.
The Group is seeing clear signs of recovery across the technology sector, noting the strong execution of
its strategy, operational excellence, and continuous investment in innovation as key contributors to its
quarter-on-quarter performance improvements. Looking ahead, Lenovo will further leverage the
opportunities created by AI, where it is uniquely positioned to succeed given its hybrid AI model, pocket-
to-cloud portfolio, strong ecosystem and partnerships, and growing portfolio of AI technologies and
capabilities. Its ongoing investment in innovation and in particular AI, will further bolster Lenovo’s ability
to capture the exponential growth from AI and drive sustainable growth and profitability for the
business. The Group is confident in its ability to resume year-on-year growth very soon.
Chairman and CEO quote – Yuanqing Yang:
“Last quarter, despite macro challenges, we saw clear signs of recovery across the technology sector.
Thanks to our strong execution, operational excellence, and continuous investment in innovation, we
delivered consecutive quarter-on-quarter performance improvements, indicating an encouraging
trajectory to recovery. With continuous execution of our intelligent transformation strategy, and with
our AI ecosystem and partnership further strengthened, we will leverage our full-stack AI capabilities
from pocket to cloud to enable hybrid AI applications for every enterprise and every individual,
ultimately driving sustainable growth for our business.”