Lenovo's $213m Q2 profit beats expectations

Chinese tech giant Lenovo on Thursday announced a better-than-expected profit of $213 million in the quarter ended June, as the world's largest personal computer maker works hard to capture the new opportunities emerging from remote working, education and accelerated digitalization.

Such a strong profit figure beat an average $107.48 million estimate of five analysts, according to research company Refinitiv data. The profit also meant a 31 percent jump from a year ago, Lenovo said, adding that its revenue increased 7 percent to $13.3 billion.

Yang Yuanqing, chairman and CEO of Lenovo, said the company has quickly regained momentum from the impact of the pandemic and is capturing the new opportunities emerging from remote working, education and accelerated digitalization.

"While the world continues to face challenges, Lenovo is focused on delivering sustainable growth through our core businesses as well as the new service and solution opportunities presented by our service-led intelligent transformation," Yang said.

The company also said in a statement that the last quarter had presented multiple industrywide business challenges, including ongoing geopolitical uncertainties and the COVID-19 pandemic.

"To chart a path through these challenges, Lenovo continues to leverage its core competencies of operational excellence and a 'global sourcing, local delivery' approach," the company added.

Specifically, Lenovo's Intelligent Devices Group (IDG) continues to lead the company's strong performance. The PC and Smart Devices Group (PCSD), one of the two IDG business units, grew revenue by double digits year-on-year to $10.6 billion. Pretax income reached $670 million, up nearly 28 percent year-on-year, while industry-leading profitability improved by almost 1 point to a new record of 6.3 percent.

Liu Jun, president of Lenovo's China branch, said as the provider of core technologies for new infrastructure construction, Lenovo has posted strong business performance in its home turf.

In China, its sales of PC and smart devices jumped 18 percent year-on-year, and the company also posted 21.4 percent year-on-year growth in its data center businesses' sales in China.

Lenovo is also stepping up its push to help local companies accelerate intelligent transformation and unveil new tech solutions for smart cities, education, agriculture, energy, manufacturing and other sectors.