Q1 performance:

• Record first quarter for both profit and revenue. Profit of US$1.1 billion, up 43% year-on-year and revenue of US$14.7 billion, up 28% year-on-year - driven by a combination of strong performance in PCs and growing performance of non-PC segments, which now account for 18% of IDG’s total revenue.
• Average Selling Price and profitability continue to trend up, thanks to ongoing investment in premium and high growth PC segments like Gaming, Workstation, Thin & Light.
• Lenovo strengthened its #2 position in the global Android tablet market, and the smartphone business delivered over 60% revenue growth year-on year and is now a self-sustainable healthy business, with record operating margin for the quarter of almost 5%.

Looking ahead:

• Lenovo will further invest in smarter devices, core component technologies, and next generation computing platforms.
• Lenovo will leverage its broad customer base to cross sell non-PC products, to drive sustainable profitability increases.

Operational highlights and investing for the future

• Q1 R&D expense increased 40% year-on-year, with a commitment to double R&D investment over the next three years.
• The company recently climbed 65 places to be ranked #159 on the Fortune Global 500 list, an all-time high ranking
• The Group’s operational excellence and global supply chain continue to be best-in-class, helping the business to navigate ongoing global component supply challenges.
• The Group continues to focus across ESG, through both its science-based climate targets and by driving green innovation; supporting communities and businesses in need as a result of COVID challenges, and empowering under-represented communities with access to technology and STEM education through the Lenovo Foundation. The Group’s annual ESG report will be published in September 2021. Lenovo has also recently been named best workplace for disability inclusion by the Disability:IN 2021 equality index.

About Lenovo

Lenovo (HKSE: 992) (PINK SHEETS: LNVGY) is a US$60 billion revenue Fortune Global 500 company serving customers in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that power (through devices and infrastructure) and empower (through solutions, services and software) millions of customers every day and together create a more inclusive, trustworthy and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com and read about the latest news via our StoryHub.