news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

August 16 news, recently,LenovoThe Group announced its first quarter results for the 2024/25 fiscal year ending June 30, 2024, with a year-on-year increase in turnover of 20% and a significant year-on-year increase in net profit of 65%, approaching RMB 2.3 billion. The proportion of businesses other than personal computers increased by 5 percentage points compared with the same period last year, reaching a historical high of nearly 47%.

During the first quarter, Lenovo Group announced a strategic partnership with Alat, a company under the Saudi Arabian Public Investment Fund (PIF) that focuses on transformative technology investment and sustainable manufacturing: Alat proposed to provide Lenovo Group with $2 billion in interest-free convertible shares.Bondsinvest.

For this global attentionmiddle EastLenovo Group Chief Financial Officer Huang Weiming disclosed the details of the large investment by the sovereign wealth fund to the media for the first time. He said that many funds in the Middle East hope to find some high-quality companies to invest in. Alat can help us develop in the Middle East and also agrees with Lenovo's strategy. In addition, the sovereign wealth fund is a shareholder of many large companies in Saudi Arabia, and through them, Lenovo can reach customers faster. At present, the scale of Lenovo Group's Middle East business is about 1.25 billion US dollars, accounting for about 2% of the company's total.

In addition, as a long-term shareholder, Alat can help Lenovo provide fund flexibility. For this long-term investment of US$2 billion, Alat is willing to convert the bonds into shares after three years in the form of interest-free convertible bonds. This will save Lenovo Group US$100 million in interest expenses each year in the next three years and will not be affected by the dilution of convertible bonds.

Chairman and CEO, Lenovo GroupYang YuanqingAt the earnings conference, Lenovo directly gave its goal: "Our goal is to achieve 10% of Lenovo's total revenue in the Middle East through this strategic cooperation. (If calculated based on the group's full-year revenue last year) That's $6 billion, which is incredible."

In addition, the partnership with Alat will also help the company accelerate its entry into the regional market. The cooperation includes establishing new production bases to serve the regional market and further expanding Lenovo's global layout based on the existing more than 30 locations around the world. Yang Yuanqing said that the Middle East is making every effort to develop clean energy, which is very helpful for Lenovo to achieve its ESG or clean energy development goals. In addition to clean energy, IT and high technology are another direction of Saudi Arabia's transformation, which is why the Middle East Fund is eager to introduce Lenovo to build production bases and factories. In addition, local demand is growing very fast. For example, NEOM (Saudi Arabia's New Future City) has a very high demand for IT. It also includes the establishment of a high-performance computing center in the Middle East, especially the demand for intelligent computing centers, and the enhancement of Lenovo'sMotorolaThe local market share is of great help to Lenovo in obtaining these projects.

Lenovo Group's announcement shows that as part of the cooperation, Lenovo Group will issue convertible bonds and warrants totaling US$2.21 billion for zero-interest debt refinancing, supply chain investment and expansion into the Middle East and Africa. Since this convertible bond will only be converted at the end of the three-year period, it will have a positive impact on Lenovo's profitability during this three-year period. Warrants allow existing and new investors to participate and maintain their shareholdings. Lenovo Group CEO Yang Yuanqing has subscribed to 19.1% of the warrants, expressing support for the group's future prospects. (Cui Yuxian)

This article is from NetEase Technology Report. For more information and in-depth content, follow us.