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7
Lenovo Group Limited • Annual Report 2007/08
Lenovo continued to make a number of accomplishments
under our defined strategies in the past fiscal year. On one
hand, we successfully strengthened our existing business
in China and the relationship business in other
geographies. On the other hand, we also achieved
breakthroughs in developing our transaction business in
various geographies. In the past fiscal year, Lenovo
generated higher-than-market growth in both PC shipments
and sales, enabling the Group’s business outside
Greater China returned to profitability with good growth
momentum. At the same time, Lenovo’s relentless efforts to
innovate strengthened the competitiveness of our products,
with the launch of cutting-edge and well-received products
such as the IdeaPad and ThinkPad X300. The completion
of restructuring actions has allowed Lenovo to use
our global resources more efficiently, boost the
competitiveness of our desktop business and reduce
end-to-end supply chain costs. Lenovo’s brand-building
efforts have also effectively increased the awareness of the
Lenovo brand, allowing us to transition our products to the
Lenovo/Think brand ahead of schedule.
Lenovo has embarked on its next stage of profitable growth
upon the completion of the integration. Looking forward,
we will strive to strengthen our existing core business – the
China business and relationship business in other
geographies – while seizing opportunities in the market to
generate additional growth. Lenovo will focus its efforts in
three areas: developing business in emerging markets;
growing the transaction business which includes our
consumer business; and expanding in the notebook
computer market. In addition, Lenovo will continue to
actively develop profitable new businesses, such as
the high value-added peripherals, accessories and
extended services.
The Board of Directors is satisfied with Lenovo’s
performance in the past year and is confident in our
ability to execute our strategy. Lenovo builds its past and
future success on choosing the right strategy and then
executing that strategy effectively. Our successes in
replicating the transaction model around the world and
significantly improving the performance of our desktop
business has given us great confidence in management’s
execution capability. Furthermore, we believe the great
emphasis that Lenovo’s international management team
places on technology and business model innovation and
worldsourcing will result in sustained improvement in
Lenovo’s competitiveness.
My expectation for Lenovo in the next few years is that we
will continue our focus on our PC business to achieve
profitable growth at higher-than-industry levels as we take
up a new position in the global PC market. No matter how
the market environment will change, Lenovo endeavors
to realize our strategic objectives and to enhance
competitiveness to bring sustainable long-term returns to
investors. Last but not least, I would like to express my
sincere thanks to our shareholders, my fellow board
members, customers and employees for their continuous
support of Lenovo over the years.
Yang Yuanqing
Chairman of the Board
Hong Kong, May 22, 2008