Lenovo's third quarter net profit of 265 million U.S. dollars rose 32.5%

Lenovo Group in the third quarter of the net profit of 265 million U.S. dollars rose 32.5% February 13 News, Lenovo Group today in the HKEx released the third quarterly financial report of fiscal year 2013-2014. Earnings showed that Lenovo's third-quarter revenue of 10.788 billion U.S. dollars, the same period last year, 9.358 billion U.S. dollars, an increase of 15%, the third quarter net profit of 265 million U.S. dollars, the same period last year, 200 million U.S. dollars, a year-on-year increase of 32.5%. Financial results for the 9 months ended December 31, 2013, Lenovo Group's total sales of about 29.349 billion U.S. dollars. Equity holders should account for about $659 million trillion in profits over the period, an increase of $151 million over a year earlier. Gross margin of the period compared with the same period last year, maintained 13%. Basic earnings per share and diluted earnings per share were 6.35 cents and 6.27 cents respectively, representing an increase of 1.41 cents and 1.42 cents respectively over a year earlier. For the 9 months ended December 31, 2013, overall operating costs have increased overall over the same period last year as a result of the CCE, Stoneware and EMC joint ventures. The cost of staff benefits increased by 17% over a year earlier, mainly due to an increase in staff size and performance pay. In addition, a severance payment of $62 million is incurred during the period. Further analysis by functional breakdown of income and costs for the 9 months ended December 31, 2013 is provided below: Other income net other income is mainly for the sale of financial assets available for sale. Sales and distribution costs during the period of sales and distribution were reduced by 2% over a year earlier. Mainly due to the reduction in advertising and publicity costs by 21 million dollars. Administrative costs increased by 14% per cent over the same period last year. The increase was mainly attributable to an increase in staff welfare costs and a 17 million increase in depreciation and amortization costs. Research and development costs increased by 21% over the same period last year. The increase was mainly attributable to an increase in staff welfare costs and a 16 million increase in depreciation and amortization costs. Other operating expenses/(income)-net other operating costs in the net period include a net exchange loss of USD 57 million and other miscellaneous charges, offset by USD 59 million for research and development fee-related incentive income. During the same period last year, the net income of other operations mainly included a net exchange loss of USD 30 million and other miscellaneous charges, which were offset by 51 million USD for the research and development fee-related rewards. Capital expenditure for the 9 months ended December 31, 2013, Lenovo Group capital expenditure of 421 million U.S. dollars (2012-2013:312 million U.S. dollars), mainly for the acquisition of office equipment, the completion of construction projects and Lenovo Group information System investment. Business Overview Three consecutive quarters, Lenovo is the world's largest personal computer supplier (IDC data), the world's market share reached a record high of 18.5%, the year cloak up 2.4%. In the world's seven largest PC markets, the group occupies the first place in five markets in Europe, the Middle East and Africa, the Asia-Pacific region and China's citiesField share innovation High. Lenovo's global PC sales in the third quarter amounted to 15.3 million, once again becoming the fastest-growing manufacturer in the top five, winning the overall industry growth for 19 consecutive quarters, outperforming the overall industry 14%. At the same time, Lenovo's smartphone and Tablet PC sales volume of 17.3 million, has exceeded its personal computer sales for three consecutive quarters, in the quarter, Lenovo PC sales of 15.3 million units. With the introduction of Lenovo smartphones and its good market performance in several new markets, the group continues to be the fourth-largest smartphone supplier in the world, with a market share of 4.8% and sales of cloak up 47% per cent in the year. In tablet computing, Lenovo's global Tablet PC sales hit a record high of 3.4 million, with annual cloak growth of more than 300%. The group's launch of the world's first multi-mode Yoga tablet computer has led to strong growth in Tablet PCs. "In the last quarter, Lenovo's turnover and profits were high, thanks to strong implementation of the strategy, strong growth in innovative products and PC business." For existing businesses, we will maintain steady growth and profitability in accordance with established commitments. "At the same time, we announced two acquisitions of Motorola Mobility and IBM X86 Server business, a powerful move to implement the PC strategy," said Yang, chairman and CEO of Lenovo Group. With regard to these two transactions, our current priority is to complete the approval process in accordance with the relevant laws and regulations, and we are confident that the mergers and acquisitions business will provide a solid foundation and strong support for our long-term sustainable growth. "Regional overview in the third quarter, Lenovo's combined turnover in China was 4 billion U.S. dollars, with a relatively stable annual cloak, accounting for 37% of the group's total global turnover. The performance in China reflects a steady and improved pricing of a temporary slowdown in the local PC market, while innovation in urbanisation, corporate equipment updates and PC products is driving future demand. In the third quarter, Lenovo further cemented its dominance of the PC market in China, with a market share of 37.9%, an annual cloak rise of 0.5%, and a third in the Chinese smartphone market and the second in the Tablet PC market. In the Asia-Pacific region, Lenovo's combined turnover in the third quarter was 1.6 billion U.S. dollars, accounting for the group's total global turnover of 15% and an annual cloak growth of 22%. Robust executive power has boosted smartphone sales and the rapid growth of tablet computers in ASEAN countries. Meanwhile, Lenovo once again occupies the first place in the local PC market, with a market share of 15.9% and an annual cloak rise of 2% per cent. Lenovo, meanwhile, has created a milestone in the region, with smartphone sales breaking 1 million. Lenovo's combined turnover in Europe, the Middle East and Africa in the third quarter was 2.9 billion U.S. dollars, with an annual cloak rise of 25%, accounting for 27% of the group's total global turnover. In the quarter, Lenovo cemented its position as the second-largest PC maker in the region by maintaining corporate PC sales, tapping into small and medium-sized businesses, and consumer-PC markets, with sales up 27%, up 33% from market performance. Lenovo in the District 11The country is the largest PC maker. Notably, Lenovo has also been selling Tablet PCs in Europe, the Middle East and Africa, with sales rising by nearly 450% over a year earlier. Americas in the third quarter of the combined turnover of 2.3 billion U.S. dollars, the year cloak rose 36%, accounting for the group's global total turnover of 21%. Lenovo's PC sales in Americas Rose 28%, a 31% higher than the market, and a 2.7% per cent increase in market share in the year to 11%. In the Brazilian market, PC sales in the region rose by 378% and market share reached an all-time high of 18.6% through excellent management, new production facilities and integrated CCE operations. Commercial PC business in the United States continued to perform strongly, with sales of cloak growth of 21% per cent, outperforming market 15%. Product overview In the third quarter, Lenovo's notebook computers contributed the most to the group's global turnover, accounting for 50% of the group's total turnover. Sales of notebook computers in the overall industry fell 6.3% in the year cloak. Despite the challenges of the business environment, Lenovo's global notebook computer's overall turnover in the third quarter still recorded 5.4 billion U.S. dollars, the year cloak increased by 11%. The group's market share increased by 2.7 percentage points to 18.8%. In the third quarter, the group announced the introduction of ultra-thin, easy to carry and affordable "lenovo a10", the group's first notebook computer developed with the Android 4.2 operating system, and has two different formats. "lenovo a10" fuselage weight less than 1 kilograms, thickness of only 17.3 mm, is currently the market's thinnest and lightest consumer notebook computer. In the quarter, global sales of Lenovo desktop computers rose by 9.1% in the year cloak, while overall industry sales fell by about 3%. As a result, Lenovo's market share has risen 2% per cent in the year to 18% cloak. Lenovo desktop computer in the third quarter of the combined turnover of cloak rose 12% to 3.2 billion U.S. dollars, accounting for the group's total turnover of 29%. In the quarter, Lenovo released four new All-in-one desktops, including the "lenovo b750", which has a 29-inch wide screen, further consolidating and expanding the leading position of such a competitive product. According to the IDC report, Lenovo topped the global All-in-one desktop computer market, both in the consumer and commercial sectors. The group's mobile interconnection and digital home products, including smartphones and tablets, grew by 73% in the third quarter of the year, cloak 1.7 billion dollars, accounting for 16% of the group's total turnover. Tablet PC sales surged 326% in the year, with innovation up to 3.4 million cloak, accounting for 4.3% of the market. In the third quarter, Lenovo launched the multi-mode yoga Tablet PC. The product has three unique modes: Standing mode, reading mode and touch mode, creating a more convenient and comfortable way for consumers to use tablets, and its 18-hour battery life is commendable. In the new product conference, famous actor Ashton (Ashton Kutcher) to associate with the new products engineer's identity and passThe network video live broadcast for the general audience introduced Yoga tablet computer. In addition, after popular products Miix Tablet PC, Lenovo in the third quarter launched an upgraded version of MIIX2 8-inch Tablet PC. Lenovo's mergers and acquisitions and recent mergers and acquisitions, after completing the acquisition of IBM's global PC business and the ThinkPad product line in 2005, have so far successfully completed six business consolidations, including a joint venture with NEC, a takeover of Germany's Medion and Brazil's CCE, Establish strategic partnerships with EMC and establish joint ventures, acquire US stoneware and set up joint ventures with China benevolence. At present, Lenovo has become the world's largest personal computer manufacturers, the second largest PC tablet computer manufacturers and the third largest intelligent terminal manufacturers, and these businesses also make the group's revenue and profitability doubled. Lenovo's recent announcement of its investment in the acquisition of Motorola Mobility and the IBM server business is a logical move by the group to drive the "PC +" strategy. After completing the IBM server business transaction, Lenovo will become the world's third largest server vendor, while the server business has a higher gross margin than the PC. After completing the acquisition of Motorola Mobility, Lenovo will become the world's third-largest expert machine manufacturers. By saving costs and expanding economies of scale, coupled with the world renowned Motorola brand, and seeking to expand Motorola Mobile's global coverage opportunities, such as initiatives and advantages, the acquisition of the smart phone business will quickly succeed. The two deals, Lenovo believes, will expand the global footprint of its existing smartphones, tablets and servers and enhance its competitiveness to achieve stronger and more sustainable growth in the future.