Shulou(Shulou.com)11/24 Report--

According to CTOnews.com news on November 4, Lenovo released its mid-term results for the fiscal year 2022-2023 at noon on November 3. Lenovo's second-quarter revenue was $17.09 billion, down 4% from a year earlier, with an estimated $16.85 billion and a net profit of $541 million, with an estimated $473 million. Lenovo said the decline in revenue was caused by a decline in PC sales because of weak demand from both consumers and small and medium-sized business customers.

CTOnews.com learned that when it comes to Lenovo's cash flow performance, Yang Yuanqing said Lenovo had $5.5 billion in cash reserves at the end of the second quarter and $1.1 billion in net cash reserves after deducting debt. Lenovo will strengthen its overall liquid asset management, making the company's cash flow particularly strong.

In addition, in addition to managing current cash, Lenovo also converts debt from three years to five or ten years by issuing bonds in the capital markets. Six months ago, we had expected a rise in interest rates in the market, "so we probably issued a total of $2 billion of debt, partly to repay short-term debt, making the company's debt capital structure healthier." Yang Yuanqing believes that Lenovo's current debt structure is particularly healthy.

Yang Yuanqing also said that the sluggish global demand for personal computers (PC) is expected to continue into the fourth quarter of this year, and the company plans to focus on profitability while developing non-computer businesses to help the company tide over the difficulties. Mr Yang said that in such a challenging market environment, Lenovo would focus on operational efficiency and would help the company double its net profit margin in the medium term through newer, high-margin businesses such as equipment services.

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