Lenovo eyes bigger mobile and enterprise deals after banner year

Computer giant Lenovo, which posted record earnings in its recent financial year ended March 31, plans to set up a new US$5 billion a year business and start selling about 100 million smartphones and media tablets annually after its two biggest acquisitions close later this year.

Chairman and chief executive Yang Yuanqing yesterday said the company would "build new pillars of growth in mobile and enterprise" once US authorities approved its US$2.91 billion takeover of Google's Motorola Mobility operation, and the US$2.3 billion purchase of IBM's low-end server business.

"Through the combination of our existing and new businesses, Lenovo offers tremendous value to shareholders today, and our value will be even greater in the future," Yang said.

Lenovo, the world's largest supplier of personal computers, saw its share price climb 3.4 per cent to finish at HK$9.44 - the stock's highest close since reaching HK$9.48 on April 11 - after announcing its financial results yesterday afternoon.

The company, which operates in more than 160 countries, said its net profit jumped 29 per cent to a record US$817 million, from US$635 million a year earlier, as combined smartphone and tablet sales surpassed those of personal computers in four consecutive quarters.

Yang said revenue hit an "all-time high" of US$38.7 billion, up 14 per cent from US$33.9 billion the previous year. China accounted for 33 per cent of worldwide sales.