Yang explains big losses: possible restructuring in the future

"Sohu It News" (Wen/Chen Liming) May 25, Lenovo Group released its quarterly results of the quarter 05-06, earnings showed that Lenovo's combined turnover for the quarter ended March 31, 2006 was HK $24.4 billion, an increase of 417% over a year earlier, 　　Mainly from the continued strong performance of China's business and last May, the new acquisition of IBM PC business contribution. Despite the increase in Lenovo's turnover, Lenovo Group in the last quarter of the fiscal year generated a related restructuring costs of HK $543 million (70 million U.S. dollars), after the cost of such restructuring, Lenovo in 2005/　　In fiscal year 06, shareholders were expected to account for a loss of HK $903 million, which means that, excluding restructuring fees, Lenovo still lost HK $360 million in the quarter.　　For the not-so-good fourth-quarter earnings, Lenovo chairman Yang pointed out that, in addition to seasonal factors, but also more important is the increase in fixed costs and increased investment in branding, such as the Winter Olympics, CEO adjustment and large-scale restructuring. He said the restructuring could bring US $250 million a year in revenue for our future, so Lenovo could continue to restructure. "As for the future, if we can bring such a big profit, why not restructure it?" "Yang said that our annual report card Lenovo Board is satisfied with similar mergers in the first year most of the decline in turnover, but Lenovo achieved turnover growth." At the same time, our long-term loss of the previous IBM performance, in the first year to achieve a profit, this turnaround is mainly due to synergies, such as procurement Synergy brought us a very large synergy effect.