On May 23, Lenovo Group unveiled its financial results for the fourth quarter and full year of the 2023/2024 fiscal year. In the fourth quarter, Lenovo Group benefited from higher-than-expected demand and achieved multiple new milestones. Thanks to the sustained strong growth of its three major business groups, the group's revenue increased by 9.5% to reach 99.4 billion RMB, with net profit more than doubling to 1.78 billion RMB.
Lenovo Group stated that despite a weak performance at the beginning of the year, it increased its investment in hybrid artificial intelligence to unlock growth opportunities while enhancing profitability. The gross profit margin for the fourth fiscal quarter reached 17.6%, hitting the second-highest level in history.
Non-personal computer business accounted for nearly 45% of the total revenue of the three major business groups, reaching a historic high, showcasing Lenovo's success in building a diversified growth engine. The Solution Services Business Group achieved record-high revenue in the fourth quarter, with profits increasing by 20% year-on-year. The Intelligent Devices Business Group saw a 17% year-on-year profit growth, attributed to outstanding operations and the rapid growth of its high-end product segment. The Infrastructure Solutions Business Group regained strong revenue momentum, growing by 15% year-on-year, thanks to robust recovery in cloud customer demand, expansion of the GenAI product portfolio, and record sales of storage, software, and services. The profitability of the Infrastructure Solutions Business Group was impacted by market transformation, but timely measures were taken to drive future improvements.
Additionally, the group recorded a one-time non-cash accounting gain of 143 million USD from the fair value assessment of put options liabilities. This gain was largely offset by a total of 132 million USD in restructuring and other expenses. These expenses were incurred due to various measures taken to further enhance the group's efficiency and competitiveness.
