On May 23, Lenovo Group announced the fourth quarter and full year results for the 2023/2024 fiscal year. In the fourth quarter, Lenovo Group benefited from higher-than-expected demand and achieved a number of new milestones. Thanks to the continued strong growth of the three major business groups, the group's revenue increased 9.5% to 99.4 billion yuan, and net profit more than doubled to 1.78 billion yuan.
Despite poor performance at the beginning of the year, Lenovo Group said it is increasing its investment in hybrid artificial intelligence to unlock growth opportunities while improving profitability.The gross margin for the fourth fiscal quarter reached 17.6%, reaching the second-highest level in history.
The non-personal computer business accounts for nearly 45% of the total revenue of the three major business groups, a record high.It highlights Lenovo's success in building a diversified growth engine.The Solution Services Business Group's fourth quarter revenue reached a record high.Profit increased 20% year over year. The Smart Devices Business Group segment's profit increased 17% year over year, thanks to operational excellence and a profitable and rapidly growing high-end products division. The Infrastructure Solutions business group resumed strong revenue momentum, up 15% year over year, thanks to a strong recovery in demand from cloud customers, expansion of the GenAI product portfolio, and record sales of storage, software, and services. The profitability of the Infrastructure Solutions business group was affected by market transformation, but timely steps were taken to drive future improvements.
Meanwhile, the group recorded one-time non-cash accounting income of $143 million from fair value assessments of put option liabilities. This gain was largely offset by restructuring and other expenses totaling $132 million. These costs are due to various measures to further improve the efficiency and competitiveness of the Group.