Lenovo Group officials learned that the Lenovo Group 2023/24 fiscal year pledge meeting kicked off today, Chairman and CEO Yang Yuanqing announced the five major goals for the new fiscal year.
Yang Yuanqing said that in the new fiscal year, Lenovo would continue to implement the 3S strategy, accelerate service-oriented transformation, promote technology-driven innovation, and continue to build a diversified growth engine, and set five major goals for this purpose:
- First, the PC business will continue to outpace market growth, maintain industry-leading profitability, and return to year-over-year growth in the second half of the natural year 2023.
- Second, to further increase the share of non-PC business turnover by more than 2 percentage points.
- Third, MBG will achieve 15% year-over-year growth in revenue and SSG will achieve 20% growth, with both businesses growing to $8 billion.
- Fourth, ISG continued to grow at a rate that outpaced the market by more than 20 percentage points and continued to improve profitability.
- Fifth, Lenovo Ventures will invest in more outstanding technology companies and do a good job as Lenovo’s technology watchtower.
Yuanqing Yang also said that in the past three years, Lenovo’s revenue grew from RMB 350 billion to the RMB 460 billion milestones, an increase of more than 100 billion, while net profit soared to almost three times what it was three years ago.
According to Yang, the high-tech industry has become too complex and fragmented from the earliest integrated model of IBM software and hardware with overlapping applications, to a differentiated model dominated by operating systems and chips. Users cannot get a seamless experience across devices and ecologies, and enterprise-level customers find it difficult to choose the infrastructure and solutions that best suit their needs. The time for another consolidation may have come, and Lenovo has the right timing and the right people to seize this opportunity.
“We are at the hub of hardware-software and at the forefront of customer-facing, and we also have the experience and ability to successfully integrate vertically. Like the CSP cloud infrastructure business, Lenovo is through the conversion from outsourcing to a self-designed motherboard, greatly enhancing its competitiveness. Through the extension of vertical capabilities, we are able to achieve ‘downward integration’ from the whole machine to the motherboard, and then to the key components. This is the new connotation of our vertical integration, but the soul of our service-oriented transformation, technology-driven innovation continues to deepen.”