Mainland technology giant Lenovo Group saw its share price fall the most in more than a week, following a record quarterly loss and an atmosphere of continued weakness in the computer market.
Shares of the world's fourth-largest supplier of personal computers dropped 6.35 per cent yesterday to close at HK$2.80, the steepest decline since May 14, when it closed at HK$2.68.
On Thursday, the company reported a worse than expected net loss of US$264 million in the quarter to March, compared with a US$140 million profit a year earlier.
Sales in all its geographic operations, including in its main Greater China market, were all down year on year.
However, its senior management remained optimistic that the company's performance would improve this financial year, with participation in strategic infrastructure projects on the mainland.
They also expected the latest restructuring programme, announced in January, which shed 2,500 staff worldwide, to drive further efficiency and help realise savings of US$300 million.
'I do not see Lenovo turning around in the near term,' said JP Morgan analyst Charles Guo. 'Lenovo has the difficult task of penetrating into the consumer channels in the United States and Europe, and these difficulties won't get solved simply by an internal reorganisation.'
