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2012 /13 Annual Report Lenovo Group Limited
Stock Code 992
TRANSFORMING
LENOVO FOR THE PC+ ERA

Table of contents

  • Page 1
    A R E + G C N I P M E R H O T F R S O N F A TR NOVO LE vo eno L t or Rep ed imit L up Gro al nnu A 3 2 /1 2 2 01 Code 99 ck Sto

  • Page 2

  • Page 3
    ...d stro e o n M t o n e ers in n g P C 160 c vices, L chain a rmer IB d i mak m e r g re than rnet de supply f the fo ures an s e o al ct uct no nte an in m obile i nt glob quisitio manufa y prod cial s r me mer fficie s ac nd m olog ps, usto PCs a highly-e Group' develo techn d com ations, c ing vo...

  • Page 4
    P R E R E E N H O T I P E G O T O D ER ue niq makes u s it t ith Tha . W r . e th PC ble le toge enter. a t t c firs s peop ly fun s ' g d i l n wor on bri s a fam e h ' t oriz ory: it an H h t , e es eg mor abiliti w cat s i e cap an izon Hor -...

  • Page 5
    E N O I P N R E NE

  • Page 6
    ... EBITDA1 Pre-tax income Pre-tax income margin (%) Profit attributable to equity holders of the Company EPS - basic (US cents) EPS - diluted (US cents) Interim dividend per share (HK cents) Final dividend per share (HK cents)2 Total dividend per share (HK cents) Cash and Working Capital Bank deposits...

  • Page 7
    ...% 15% 2012 2013 20% 22% 15% China APLA EMEA North America 33,873 29,574 53% Notebook computer 33% 5% 5% 2012 2013 31% 7% 9% Desktop computer Others MIDH PIO EBITDA1 for the year ended March 31 (US$ million) (Loss)/Profit Attributable to Equity Holders of the Company for the year ended March...

  • Page 8
    ... mily of t it. x e n ï¬, a b the porta ntire f you wa o t e s r he ome ning t novo's heneve c t w Le en i mbi Wh vo. Co lix and u need o e o Len oga, H evice y Y d PC, uting p com R E E N O I P

  • Page 9
    ThinkPad Helix IdeaPad Yoga 11s Id E E N O PI N O PI R

  • Page 10
    ... 1 PC company in key mature markets like Japan and Germany, while setting a PC share record in the United States. This success was fueled not only by our historically strong commercial business, but also by significant expansion in our consumer business, driven by innovative product launches, brand...

  • Page 11
    ... most powerful brands by Fortune magazine. strategy and invest in vertical integration - especially with new facilities in Brazil and our new mobile devicefocused plant in Wuhan, China. These investments will help us drive not only efficiency, but also outstanding product development across the PC...

  • Page 12
    ... Business Group will focus on premium products as well as enterprise services (like servers and storage). It will also focus on extending Think branded PCs from the global leader in the commercial space to a respected premium PC brand for consumers. 10 Lenovo Group Limited 2012/13 Annual Report

  • Page 13
    ... ourselves as a global consumer and commercial brand of choice in the PC+ space. Lenovo's accomplishments in the last year have put us in position to become the leading PC company in the world. But that distinction is just another milestone on our 2012/13 Annual Report Lenovo Group Limited 11

  • Page 14
    ... Chief Technology Offi Officer cer PETER D. HORTENSIUS Senior Vice President and President of Think Business Group GIANFRANCO LANCI Senior Vice President and President of EMEA LIU JUN Senior Vice President and President of Lenovo Business Group 12 Lenovo Group Limited 2012/13 Annual Report

  • Page 15
    ..., Human Resources GERRY P. SMITH Senior Vice President and President of Americas MILKO VAN DUIJL Senior Vice President and President of Asia Pacific PIO WONG WAI MING Senior Vice President and Chief Financial Officer R E E N O I P o Gr G up Lim mite 2012/13 Annual Report Lenovo Group Limited...

  • Page 16
    R G N E N E O I I N P H O I T P Y N A O D ith e w ure. c n a ec form and s do r e ly le lp rfu reliab not on e w s o re blet o. ne p that a a i t b g m s se s co device nd the er you t e l ab le , a herev vo t , mobi ry life o n ow t Le igh y batte , but g l , thin ll-da eed n a u Add ing yo th ...

  • Page 17
    P R E E N O N O PI

  • Page 18
    ... PC market declined 8 percent year-on-year due to slow economic conditions and product transition, but Lenovo grew in spite of these challenges in the worldwide PC market. Further to its strong performance in the PC market, the Mobile Internet and Digital Home (MIDH) Group has become another key...

  • Page 19
    ... America (APLA) markets. The Group achieved record high PC market share in China, EMEA, NA and APLA. Lenovo ranked number one in two of the top three PC markets in the world, namely China and Japan, in the fiscal year 2012/13. China China accounted for 43 percent of the Group's total revenue. China...

  • Page 20
    ...execution of its channel strategy, as well as its leadership in commercial segment. Thus the Group's market share increased by 1.6 percentage point from a year ago to a record-high 8.8 percent, according to preliminary industry estimates. Lenovo has become the number four PC company in North America...

  • Page 21
    ...worldwide commercial PC market increased by 1.9 percentage point year-on-year to 18.7 percent during the fiscal year. Lenovo offers a wide range of commercial desktops and notebooks to businesses of all sizes that feature cutting-edge technology, customer-centric innovation and powerful productivity...

  • Page 22
    ...'s unit shipments grew 22 percent year-on-year and its market share increased by 3.1 percentage point year-on-year to 12.8 percent. Lenovo became the number one PC company in the global consumer desktop segment during the year under review. The Group announced a series of new and stylish PC products...

  • Page 23
    ... China. The Group has also planned for the launch of more new smartphones and tablets to fuel future growth. The Group has also launched smart TVs in China during the fiscal year and the initial market response was encouraging. O IdeaPad Yoga ERAZER X700 2012/13 Annual Report Lenovo Group Limited...

  • Page 24
    ... its innovation leadership in the year ahead by launching more bold products - particularly in the mobile internet space - which will help enhance its position as a strong, wellrespected global PC+ technology brand. Lynx ThinkPad X1 Carbon Touch 22 Lenovo Group Limited 2012/13 Annual Report

  • Page 25
    ... New Ideas - Lenovo's Culture Driving Innovation in the PC+ Era One of Lenovo's competitive advantages and key reasons for our success in 2012/13 has been our culture, what we call The Lenovo Way. At its core, The Lenovo Way is about commitment and ownership and is centered on a simple but powerful...

  • Page 26
    ... benefit costs increased by 22 percent as compared to last year due to increased headcount and performance-driven incentive payments. Branding and promotional expenses increased by 7 percent as compared to last year as a result of the new product launches. 24 Lenovo Group Limited 2012/13 Annual...

  • Page 27
    ...For the year ended March 31 Depreciation of property, plant and equipment and amortization of prepaid lease payments Amortization of intangible assets Employee benefit costs, including - long-term incentive awards Rental expenses under operating leases 2012/13 Annual Report Lenovo Group Limited 25

  • Page 28
    ... completed the formation of the EMC JV and the acquisition of CCE and Stoneware. Goodwill and other intangible assets, including trademarks and trade names and customer relationships, of US$201 million and US$99 million were recognized respectively. 26 Lenovo Group Limited 2012/13 Annual Report

  • Page 29
    ... and higher demand of mobile internet and digital home products. During the year, the Group has shifted further to in-house manufacturing which resulted to the increase in raw materials and service parts. The completion of the business combination activities during the year also contributed to an...

  • Page 30
    ...its basic limited warranty. The specific warranty terms and conditions vary depending upon the product and the country in which it was sold, but generally includes technical support, repair parts and labor associated with warranty repair and service actions. The period ranges from one to three years...

  • Page 31
    ... from the acquisition of CCE of US$21 million. Bank borrowings Bank borrowings amounted to US$176 million as at March 31, 2013, representing an increase of 179 percent, mainly due to the amounts arising from the acquisition of CCE of US$111 million. 2012/13 Annual Report Lenovo Group Limited 29

  • Page 32
    ... 2013, the amounts drawn down were US$242 million (2012: US$220 million) in trade lines, US$4,945 million (2012: US$4,720 million) being used for the forward foreign exchange contracts; and US$176 million (2012: US$63 million) in short-term bank loans. 30 Lenovo Group Limited 2012/13 Annual Report

  • Page 33
    ... policy, bonus and long-term incentive schemes with reference to the performance of the Group and individual employees. The Group also provides benefits such as insurance, medical and retirement funds to employees to sustain competitiveness of the Group. 2012/13 Annual Report Lenovo Group Limited...

  • Page 34
    ...growth opportunity in both consumer and SMB PC segments. The Group closed the transactions of CCE, EMC and Stoneware, which will help to enhance Lenovo's products and services to its global customers and fully deliver on its PC+ strategy. Lenovo remains optimistic about the future of the PC+ market...

  • Page 35
    ... competencies, product innovation, and branding to help the Group capture more market opportunities. Lenovo will continue to pursue its leadership in the PC+ age and transforming itself to a global PC+ innovation leader. The Group, given its solid financial position, will continue to actively look...

  • Page 36
    N R E E N O I P PI R E E N O I P O I P R E E N O I P R E E

  • Page 37
    IdeaPhone K900 E H W Y R E V E DO R E E N O PI ck, , sli th k e o le 's s t are b o v ha eno h L vices t t i w e ere nes, d h w ry ho eve martp d e s ct nne d thin d. o c e y an Sta some d refin d n han rful a e pow R E E N O I P RE

  • Page 38
    ... the compensation level and package for the Chairman of the Board, Chief Executive Officer, other directors and senior management Nomination and Governance Committee Key objectives: assist the Board in overseeing Board organization, reviewing succession planning, developing the corporate governance...

  • Page 39
    ... and Chief Executive Officer) Since November 3, 2011, Mr. Yang Yuanqing ("Mr. Yang") has been performing both the roles as the chairman of the Board (the "Chairman") and chief executive officer of the Company (the "CEO"). The Board has recently reviewed the organization human resources planning of...

  • Page 40
    ... Directorship with other public companies Board tenure Age group (Number of companies) (Number of years) 0% Global operations Accounting / Internal controls Equity investment / Financial IT industry Areas of Experience ED - Executive director NED - Non-executive director INED - Independent...

  • Page 41
    ...of the Listing Rules. On May 22, 2013, the Nomination and Governance Committee of the Board conducted an annual review of the independence of all independent non-executive directors of the Company for the year ended March 31, 2013. Having taken into account the factors as set out in rule 3.13 of the...

  • Page 42
    ...knowledge and diversity of backgrounds, skills, experience and perspectives that would complement the existing Board. The Company has set out the following objectives for fiscal year 2013/14: Measurable objectives Objective 1 Consider candidates for appointment as independent non-executive directors...

  • Page 43
    ... directors who stand for re-election at the 2013 annual general meeting, all of their directorships held in listed public companies in the past three years are also set out in the document accompanying the notice of the 2013 annual general meeting. 2012/13 Annual Report Lenovo Group Limited 41

  • Page 44
    ... Tudor Brown, who joined the Board in January, 2013, to visit Lenovo showroom in India, the Lenovo Products Exhibition Center, manufacturing plant and MIDH showcase in Beijing to enhance his understanding of the businesses and operations of the Group. 42 Lenovo Group Limited 2012/13 Annual Report

  • Page 45
    ... presentations from senior executives in the business on matters of significance. Financial plans, including budgets and forecasts, are regularly discussed at Board meetings. The Company would arrange, where appropriate, site visits and meetings with senior management for directors to facilitate...

  • Page 46
    ...on July 3, 2012. An induction was conducted for Mr. William Tudor Brown, who was newly appointed to the Board in January 2013. In-house seminar Visit to Yamato Laboratory in Japan Online Training at Lenovo University Visit to Lenovo showroom in India 44 Lenovo Group Limited 2012/13 Annual Report

  • Page 47
    ... set 2 years in advance • To facilitate maximum attendance Meeting agenda and notice • Finalized by the Chairman in consultation with Board members • Notice of not less than 30 days be given Dispatch Board papers to directors • Agenda and supporting documents 7 days, with updated financial...

  • Page 48
    ...overall strategy and directing and supervising its affairs in a responsible and effective manner. The Board also sets the Group's core values and adopts proper standards to ensure that the Company operates with integrity and complies with the relevant rules and regulations. 46 Lenovo Group Limited...

  • Page 49
    ... and operational risks BOARD OF DIRECTORS Financial • Chief Financial Officer's report • Financial results • Forecasts Corporate Governance, Diversity and Talent • Board performance • Continuous disclosure policy • Succession planning 2012/13 Annual Report Lenovo Group Limited 47

  • Page 50
    ... spread of the Group's business, in addition to the meetings in Hong Kong and New York, the Company also held meetings in Japan and India with a particular focus on reviewing the strategies and business in these areas which provided an opportunity for directors to meet with management teams in those...

  • Page 51
    ...a regular basis, including their decisions or recommendations to the Board, unless there are legal or regulatory restrictions on their ability to do so. The member list of the Board Committees is also posted on the Company's website and HKEx's website. 2012/13 Annual Report Lenovo Group Limited 49

  • Page 52
    ... policy Assessment of the performance of the Chairman and CEO for fiscal year 2011/12 and recommendation to the Compensation Committee Review of and recommendation to the Board for adoption of Diversity Policy on May 22, 2013 • • • • • 50 Lenovo Group Limited 2012/13 Annual Report

  • Page 53
    ... the first one being a session attended by only human resources management to review the organization human resources planning of the Company while the other was without the presence of all the senior management to discuss future Board meeting matters. 2012/13 Annual Report Lenovo Group Limited 51

  • Page 54
    ... areas shown below. The process took place between November 2012 and January 2013. Board Composition and Structure Board Conduct Board Committees BOARD OF DIRECTORS Board Contribution Relationship with Shareholders Relationship with Management 52 Lenovo Group Limited 2012/13 Annual Report

  • Page 55
    ... remain appropriate to the Company's needs. The list of members of senior management and their biographies are set out on pages 98 to 99 of this annual report. ACCOUNTABILITY AND AUDIT Financial Reporting The Board acknowledges its responsibility for presenting a balanced, clear and comprehensive...

  • Page 56
    ... monitors and reports the progress of action plans to address the key risks. Management also tracks and reports on the implementation of strategic initiatives, business plans, budgets and financial results. As part of the focus on financial integrity, all relevant senior executives regularly verify...

  • Page 57
    ... function, the Head of Internal Audit reports directly to the Audit Committee on all audit matters and to the Chief Financial Officer on administrative matters. The Head of Internal Audit is authorized to communicate directly with the Chairman of the Board and other Board members. To help ensure the...

  • Page 58
    ... the shareholders. The Board is satisfied that the Company has fully complied with the code provisions on internal controls as set forth in the Corporate Governance Code. Enterprise Risk Management At Lenovo, risk is defined as a potential action, event or circumstance that could impact the Group...

  • Page 59
    ... the independence requirements under the Code of Ethics for Professional Accountants issued by the Hong Kong Institute of Certified Public Accountants. The external auditor may provide certain non-audit services to the Group given that these do not involve any management or decision making functions...

  • Page 60
    ... is essential for enhancing investor relations and investor understanding of the business performance and strategies of the Group. To achieve this, the Company has established the Shareholders' Communication Policy setting out various formal channels of communication with shareholders and...

  • Page 61
    ...meeting. The poll was conducted by Tricor Abacus Limited, the Company's share registrar, as scrutineer and the details of poll voting results were posted on the Company's website (www.lenovo.com/hk/publication) and HKEx's website (www.hkex.com.hk) on July 3, 2012. 2012/13 Annual Report Lenovo Group...

  • Page 62
    ...Conference Credit Suisse Asian Technology Conference CLSA Investor's Forum Daiwa Investment Conference Credit Suisse US Technology Conference Location Singapore Hong Kong Beijing Taipei Tokyo Hong Kong New York Boston Taipei Hong Kong Hong Kong Arizona 60 Lenovo Group Limited 2012/13 Annual Report

  • Page 63
    ... Mobility Corporate Day Bank of America Merrill Lynch Technology & Beyond Conference Credit Suisse Asian Investment Conference Location Las Vegas Las Vegas Las Vegas Hong Kong & Singapore Hong Kong London Taipei Hong Kong Market Recognitions The Company's continuous effort in investor relations...

  • Page 64
    ... award-winning investor relations services. Key Shareholders Information Listing Information Lenovo Group Limited's shares are listed on the Stock of Exchange of Hong Kong. In addition, shares are traded in the United States through an American Depositary Receipt (ADR) Level 1 Programme. Market...

  • Page 65
    ... and put forward proposals at an annual general meeting or extraordinary general meeting, including proposing a person other than a retiring director for election as a director are set out in the Corporate Governance section of the Company's website. Shareholders may send their enquiries requiring...

  • Page 66
    ...) by the relevant holder or group of holders as recorded in the registers maintained under the SFO. The approximate percentage of shareholding is calculated on the basis of 10,439,152,059 Shares of the Company in issue as of March 31, 2013. (ii) 64 Lenovo Group Limited 2012/13 Annual Report

  • Page 67
    INFORMATION FOR INVESTORS Ordinary Shares (as at 31 March 2013) Listing Stock code Board lot size Ordinary shares outstanding as of March 31, 2013 Free float Market capitalization as of March 31, 2013 Hong Kong Stock Exchange 992 2,000 shares 10,439,152,059 shares 6.3 billion shares HK$80.5 billion ...

  • Page 68
    ... of Chartered Accountants in England and Wales and a member of Hong Kong Institute of Certified Public Accountants, and experience in accounting or related financial management expertise as required under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the...

  • Page 69
    ... members is set out in the Corporate Governance Report on page 51. The work of the Audit Committee follows an agreed annual work plan and principally falls under three main areas: financial reporting; internal audit and controls; and the oversight of external audit and the management of the Company...

  • Page 70
    ... for warranty costs, indirect tax receivables, slow moving inventories and doubtful receivables; Reviewed worldwide accounting and finance business transformation organization of the Group; • Reviewed the management letter point status and management system in related to revenue recognition...

  • Page 71
    ... to the Board the approval the audited financial statements of the Group for the year ended March 31, 2013 together with the related annual results announcement and this annual report incorporating the directors' report and corporate governance report. INTERNAL CONTROLS The Group's internal control...

  • Page 72
    ... payments and FY2012/13 compensation for Chairman of the Board and CEO Reviewed and approved the updated bonus plan design Reviewed and approved the compensation arrangements relating to retirement of Director Reviewed and approved FY2012/13 annual long-term incentive program ("LTI Program") awards...

  • Page 73
    ... management consists of base salaries, allowances, performance bonus, long-term incentives, retirement benefits, and benefits-in-kind. These components are described below in greater detail as well as a graphical overview of the average pay mix. Chairman and CEO Pay Mix COMPENSATION POLICY Overall...

  • Page 74
    ... of LTI Program in 2005, the Company granted its employees, including directors and senior management, share options. No further options have been granted since 2004. Details of the Share Option Scheme are set out on pages 101 to 102 in the Directors' Report. Retirement Benefits The Company operates...

  • Page 75
    ... about the Company's priorities and values. Fixed Compensation Performance Bonus Long Term Incentive Program EMPLOYEE COMPENSATION PACKAGE Similar to senior management, employees at Lenovo are eligible for fixed compensation including base salary, allowances and benefits-in-kind. Eligible...

  • Page 76
    ... to the financial statements. SAR and RSU awards outstanding for Non-executive Directors as of March 31, 2013 under this scheme are presented in the "Long-Term Incentive Schemes" section of this report. Fiscal year 2012-13 Chairman/CEO and Senior Management Review Fixed Compensation As a part of its...

  • Page 77
    ... grant as well as all outstanding awards for Executive and Non-executive Directors as of March 31, 2013 under the LTI Program are set out in the Long-Term Incentives Schemes section of this report. Fiscal Year 2012-13 Employees Review Fixed Compensation Each year management conducts a market review...

  • Page 78
    ... Executive and Non-executive Directors, senior management and selected top-performing employees of the Company and its subsidiaries. Share Option Scheme At an extraordinary general meeting of the Company held on March 25, 2002, the shareholders of the Company approved the adoption of a new share...

  • Page 79
    ....07.2012 11.30.2010 - 11.30.2012 08.20.2011 - 08.20.2013 08.19.2012 - 08.19.2014 07.03.2013 - 07.03.2015 08.07.2010 - 08.07.2012 11.30.2010 - 11.30.2012 08.20.2011 - 08.20.2013 08.19.2012 - 08.19.2014 07.03.2013 - 07.03.2015 Mr. Zhu Linan Ms. Ma Xuezheng 2012/13 Annual Report Lenovo Group Limited...

  • Page 80
    ....2012 08.20.2011 - 08.20.2013 08.19.2012 - 08.19.2014 07.03.2013 - 07.03.2015 08.07.2010 - 08.07.2012 11.30.2010 - 11.30.2012 08.20.2011 - 08.20.2013 08.19.2012 - 08.19.2014 07.03.2013 - 07.03.2015 Mr. Zhao John Huan Mr. Ting Lee Sen Dr. Tian Suning 78 Lenovo Group Limited 2012/13 Annual Report

  • Page 81
    ... can be found under "Board and Board Committees' Evaluation" as set out in the Corporate Governance Report on pages 52 to 53. Members of the Compensation Committee Mr. William O. Grabe (Chairman) Mr. Ting Lee Sen Ms. Ma Xuezheng Mr. William Tudor Brown 2012/13 Annual Report Lenovo Group Limited 79

  • Page 82
    ... means to minimize risk, reduce costs, increase shareholder value and support our long-term prospects for profitability. Lenovo's sustainability commitments encompass Ethics and Compliance at Lenovo Employee Health and Welfare Diversity Product Quality and Safety The Environment Global Supply Chain...

  • Page 83
    ... resources to fulfill these objectives Each business unit at Lenovo is expected to incorporate sustainability objectives in their strategies and to continually improve their performance in this area. Original signed by Yuanqing Yang, Chief Executive Officer 2012/13 Annual Report Lenovo Group...

  • Page 84
    .... Employees are directed to report to their managers or other company resources, including Human Resources, the Ethics and Compliance Office, Internal Audit, Corporate Security, or the Legal Department, any information pertaining to Fraud by or against Lenovo Unethical business conduct Violation...

  • Page 85
    ...from various cultures enables us to capitalize on diverse perspectives in the development, manufacturing, marketing and sale of our products. Diversity contributes to the overall business strategy of Lenovo and is therefore a key ingredient to profitability. Employees have an opportunity to leverage...

  • Page 86
    ... company's global manufacturing, research, product design and development activities for personal computers and related products, servers, and digital and peripheral products. Lenovo's EMS assures the highest level of environmental protection for Lenovo's products as well as Lenovo's site operations...

  • Page 87
    ... affairs. Every employee and contractor of Lenovo must follow this policy and report any environmental, health, or safety concerns to Lenovo management, who must take prompt corrective action. Original signed by Yuanqing Yang, Chief Executive Officer 2012/13 Annual Report Lenovo Group Limited 85

  • Page 88
    ...number of countries in which we offer them. At the same time, the year brought new regulatory and voluntary compliance commitments. Lenovo's compliance organization is supported by a global network of internal environmental focal points and external partners. 86 Lenovo Group Limited 2012/13 Annual...

  • Page 89
    ... facilities worldwide. Moreover we are looking into a carbon fee program and green revolving funds as a mean for financing energy and GHG reduction projects and making Lenovo's business units accountable for their own emissions and targeted reductions. 2012/13 Annual Report Lenovo Group Limited 87

  • Page 90
    ... waste and conserve water. Lenovo tracks waste intensity and works to identify and implement opportunities to reduce waste quantities. We achieved a greater than 90% nonhazardous waste recycling rate for manufacturing and research and development sites over the past year. Lenovo generates only...

  • Page 91
    ... ensuring that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible. By working together, Lenovo and other member companies are creating a comprehensive strategy for...

  • Page 92
    ... first launch is in South China in June 2013. Lenovo also plans to expand the project to East China and subsequently to the rest of the world. Global Logistics proactively drives ocean consolidation opportunities to reduce the number of containers shipped out of China manufacturing sites to...

  • Page 93
    ... global markets. Lenovo supports global education investments in both K-12 and higher education. Of the 793 million people in the world who are illiterate, two-thirds are female. To help address this inequity, Lenovo's Asia Pacific/Latin America region established an exclusive technology partnership...

  • Page 94
    ...35,000. Lenovo's regional offices have established extensive relationships with their local communities and regional nongovernmental organizations. These regional offices support education, the environment and social causes unique to their communities. 92 Lenovo Group Limited 2012/13 Annual Report

  • Page 95
    om Inc rt ive s epo ent t n R r he po tor's m pre i ' Re tate ors nt Aud me S of Com t c e o e Dir Inc ment ets end 94 Indep idated State e She ty t l qui c men s in E 111 Conso idated Balan e t l ta ge 112 Conso idated ts w S Chan s l e Flo f 113 Conso e She Cash ent o ement c t m 114 Balan idated ...

  • Page 96
    ... to shareholders during the year. The directors recommend the payment of a final dividend of HK14.0 cents per ordinary share for the year ended March 31, 2013 (2012: HK10.0 cents). Subject to shareholders' approval at the forthcoming annual general meeting ("AGM"), the proposed final dividend will...

  • Page 97
    ... charged against the share premium account of the Company. During the year ended March 31, 2013, the trustee of the long-term incentive program of the Company purchased 106,968,000 ordinary shares from the market for award to employees upon vesting. Details of the program are set out under section...

  • Page 98
    ...Department of Computer Science at the University of Science and Technology of China. Mr. Yang is also a guest professor at the University of Science and Technology of China and a member of the New York Stock Exchange's International Advisory Committee. 96 Lenovo Group Limited 2012/13 Annual Report

  • Page 99
    ...and Technology of China. He is currently the President of CITIC Private Equity Funds Management Co., Ltd.. Dr. Wu was a managing director and executive vice president of Legend Holdings Limited, the controlling shareholder of the Company, and the chief integration officer, chief strategy officer and...

  • Page 100
    ..., and managing Lenovo's global enterprise products business. Previously, Dr. Hortensius spent 17 years with IBM. He was the vice president, Products and Offerings, for IBM's PC Division prior to joining the Group and has extensive expertise in product and technology research & development. He holds...

  • Page 101
    ... in North America, Western Europe, Japan, Australia, New Zealand, and Global Accounts. Mr. van Duijl was vice president, EMEA, of IBM's PC Division before joining the Group and has extensive knowledge and expertise of the IT industry, as well as international business management. He holds a BBA...

  • Page 102
    DIRECTORS' REPORT Directors' Interests As at March 31, 2013, the interests and short positions of the directors and chief executive of the Company in the shares, underlying shares and debentures of the Company or its associated corporations (within the meaning of Part XV of the Securities and ...

  • Page 103
    ..., share options were outstanding under the New Option Scheme entitling the holders to subscribe for 63,939,051 ordinary shares of the Company, which represented approximately 0.61% of the issued share capital of the Company as at the date of this report. 2012/13 Annual Report Lenovo Group Limited...

  • Page 104
    ...the year ended March 31, 2013 was the Company or any of its subsidiaries a party to any arrangements to enable the directors of the Company to acquire benefits by means of acquisitions of shares in, or debentures of, the Company or any body corporate. 102 Lenovo Group Limited 2012/13 Annual Report

  • Page 105
    ... income protection for its employees through the provision of defined benefit pension plans, defined contribution plans, and/or contributions to various public retirement schemes in certain jurisdictions. These benefits form an important part of the Company's total compensation and benefits program...

  • Page 106
    ... excess of US Internal Revenue Service limitations for tax-qualified plans, is unfunded. Pension benefits are calculated using a five year average final pay formula that determines benefits based on a participant's salary and years of service, including prior service with IBM. The benefit is reduced...

  • Page 107
    ... received had the amounts been invested in similar Lenovo Savings Plan investment options. Company matching contributions, are directed to participant accounts and fluctuate based on changes in the stock prices of the underlying investment portfolio. 2012/13 Annual Report Lenovo Group Limited 105

  • Page 108
    DIRECTORS' REPORT Retirement Scheme Arrangements (continued) Defined Contribution Plans (continued) United Kingdom ("UK") - Lenovo Stakeholders Plan UK regular, full-time, part-time and fixed term Lenovo contract employees are eligible to participate in the Lenovo Stakeholders Plan, which is a tax-...

  • Page 109
    ... to JVCo Group and vice versa including business infrastructure related services, development & production services, sales related services, maintenance & support services, real estate services and information technology services. For a period of five years commencing from the Closing Date or until...

  • Page 110
    ...10,744,800) Services provided/received: Term: Annual cap: NEC Mobiling Agreement Date: Parties: April 1, 1995 NEC Mobiling, Ltd., an associate of NEC, and NECP (whose rights and obligations were transferred to NECPC, a member of the JVCo Group on and following the Closing Date) NEC Mobiling, Ltd...

  • Page 111
    ...maintenance services for intranet and other internal communication systems of NECPC following the Closing Date. The term ended on March 31, 2004 and is automatically renewed for additional one-year terms unless either party gives prior termination notice. 1/7/2011 1/4/2012 1/4/2013 1/4/2014 1/4/2015...

  • Page 112
    ... the Company, as at the date of this report, there is sufficient public float of more than 25% of the Company's issued shares as required under the Listing Rules. On behalf of the Board Yang Yuanqing Chairman and Chief Executive Officer May 23, 2013 110 Lenovo Group Limited 2012/13 Annual Report

  • Page 113
    ... AUDITOR'S REPORT Independent Auditor's Report To the shareholders of Lenovo Group Limited (incorporated in Hong Kong with limited liability) We have audited the consolidated financial statements of Lenovo Group Limited (the "Company") and its subsidiaries (together, the "Group") set out on...

  • Page 114
    ... INCOME STATEMENT For the year ended March 31, 2013 Note Revenue Cost of sales Gross profit Other income - net Selling and distribution expenses Administrative expenses Research and development expenses Other operating income - net Operating profit Finance income Finance costs Share of losses of...

  • Page 115
    ... hedges, net of taxes - Interest rate swap contracts Fair value loss, net of taxes Reclassified to consolidated income statement - Forward foreign exchange contracts Fair value gain, net of taxes Reclassified to consolidated income statement Actuarial loss from defined benefit pension plans, net of...

  • Page 116
    ... assets Deposits, prepayments and other receivables Income tax recoverable Bank deposits Cash and cash equivalents 23 24(a) 24(b) 24(c) 25 25 1,964,791 2,885,039 572,992 99,491 3,235,465 58,822 119,055 3,454,082 12,389,737 Total assets 16,881,997 114 Lenovo Group Limited 2012/13 Annual Report

  • Page 117
    ... equity and liabilities Net current assets Total assets less current liabilities 14,201,816 16,881,997 298,263 4,790,523 On behalf of the Board Yang Yuanqing Chairman and Chief Executive Officer Ma Xuezheng Director 2012/13 Annual Report Lenovo Group Limited 115

  • Page 118
    ... 2,209,432 Current assets Derivative financial assets Deposits, prepayments and other receivables...assets Share capital Reserves Total equity Non-current liabilities Bank ...Board Yang Yuanqing Chairman and Chief Executive Officer Ma Xuezheng Director 116 Lenovo Group Limited 2012/13 Annual Report

  • Page 119
    ... financial assets Proceeds from disposal of an associate Decrease/(increase) in bank deposits Dividend received Interest received Net cash used in investing activities Cash flows from financing activities Exercise of share options Repurchase of shares Contributions to employee share trusts Capital...

  • Page 120
    ... Issue of ordinary shares Exercise of share options Vesting of shares under long-term incentive program Share-based compensation Dividends paid Guaranteed dividend (Note 29) At March 31, 2012 At April 1, 2012 Profit for the year Other comprehensive (loss)/income Total comprehensive (loss)/income for...

  • Page 121
    ...'s financial statements. Changes in presentation The Group announced a new organizational structure that became effective in April 2012 with the creation of new reporting business units based upon geographic efficiencies, cost savings and customer value, namely China, Asia-Pacific/ Latin America...

  • Page 122
    ... accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented. (a) Subsidiaries (i) Consolidation The consolidated financial statements include the financial statements of the Company...

  • Page 123
    ...directly disposed of the related assets or liabilities. This may mean that amounts previously recognized as other comprehensive income/expense are reclassified to the consolidated income statement. Separate financial statements Investments in subsidiaries in the Company's balance sheet are accounted...

  • Page 124
    ... of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising therefrom are recognized as other comprehensive income and included in the exchange reserve in equity. 122 Lenovo Group Limited 2012/13 Annual Report

  • Page 125
    ... of the replaced part is derecognized. All other repairs and maintenance are charged in the income statement during the financial period in which they are incurred. Freehold land and buildings comprise mainly factories and office premises. All freehold lands are located outside Hong Kong and are not...

  • Page 126
    ... for customer relationships at the balance sheet date are not more than 15 years. (iv) Internal use software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. Development costs that are directly attributable...

  • Page 127
    ... 12 months of the balance sheet date. (ii) (iii) Recognition and measurement Regular way purchases and sales of financial assets are recognized on the trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets not carried at fair value through profit or loss...

  • Page 128
    ... rate determined under the contract. As a practical expedient, the Group may measure impairment on the basis of an instrument's fair value using an observable market price. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event...

  • Page 129
    ...the guarantee. These estimates are determined based on experience of similar transactions and history of past losses, supplemented by management's judgment. Any increase in the liability relating to guarantees is reported in the Company's income statement. 2012/13 Annual Report Lenovo Group Limited...

  • Page 130
    ... balance sheet. (p) Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Where any group company purchases the Company's equity share capital (treasury...

  • Page 131
    ...its basic limited warranty. The specific warranty terms and conditions vary depending upon the product and the country in which it was sold, but generally includes technical support, repair parts and labor associated with warranty repair and service actions. The period ranges from one to three years...

  • Page 132
    ..., unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). In this case, the past service costs are amortized on a straight-line basis over the vesting period. 130 Lenovo Group Limited 2012/13 Annual Report

  • Page 133
    ... share units ("Long-term Incentive Awards"). The Company reserves the right, at its discretion, to pay the award in cash or ordinary shares of the Company. The fair value of the employee services received in exchange for the grant of the Long-term Incentive Awards is recognized as employee benefit...

  • Page 134
    ... is recognized as a liability in the Group's and Company's financial statements in the period in which the dividends are approved by the Company's shareholders in case of final dividend and by the Company's directors in case of interim dividend. 132 Lenovo Group Limited 2012/13 Annual Report

  • Page 135
    ..., translated using the spot rate at the balance sheet date. Differences resulting from the translation of the financial statements of foreign operations into the Group's presentation currency are excluded. Group 2013 United States dollar US$'000 Trade and other receivables Bank deposits and cash and...

  • Page 136
    ... well as credit exposures to customers, including outstanding receivables and committed transactions. For banks and other financial institutions, the Group controls its credit risk through monitoring their credit rating and setting approved counterparty credit limits that are regularly reviewed. The...

  • Page 137
    ... liability Others Derivatives settled in gross: Forward foreign exchange contracts - outflow - inflow At March 31, 2012 Bank loans Trade, notes and other payables and accruals Contingent considerations Guaranteed dividend to non-controlling shareholders of a subsidiary Others Derivatives settled...

  • Page 138
    ... At March 31, 2013, if interest rate on bank borrowings had been 25 basis points higher/lower with all other variables held constant, post-tax profit for the year would have been US$0.5 million (2012: Nil) lower/higher. At March 31, 2013, if interest rates on customer financing programs had been 25...

  • Page 139
    ... quoted forward exchange rates at the balance sheet date, with the resulting value discounted back to present value. Other techniques, such as estimated discounted cash flows, are used to determine fair value for the remaining financial instruments. - - 2012/13 Annual Report Lenovo Group Limited...

  • Page 140
    ... 31, 2013 and 2012 are as follows: Available-for-sale financial assets Group 2013 US$'000 At the beginning of the year Exchange adjustment Additions Disposal At the end of the year 12,321 140 4,104 (403) 16,162 2012 US$'000 2,216 50 10,055 - 12,321 138 Lenovo Group Limited 2012/13 Annual Report

  • Page 141
    ... of whether additional taxes will be due. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying values in the financial statements. 2012/13 Annual Report Lenovo Group Limited 139

  • Page 142
    ... existence of taxable temporary differences, group relief, tax planning strategies and the periods in which estimated tax losses can be utilized. The carrying amount of deferred income tax assets and related financial models and budgets are reviewed at each balance sheet date and to the extent that...

  • Page 143
    ... the balance sheet date on high quality corporate bonds. The currency and term of the bonds are consistent with the currency and estimated term of the benefit obligations being valued. The expected return on plan assets is based on market expectations for returns over the life of the related assets...

  • Page 144
    ... THE FINANCIAL STATEMENTS 5 Segment information (continued) (a) Segment revenue and adjusted pre-tax income/(loss) for reportable segments 2013 Revenue from external customers US$'000 China APLA EMEA North America Segment total Unallocated: Headquarters and corporate expenses Restructuring costs...

  • Page 145
    ... category Revenue from external customers are mainly derived from the sale of personal computer products and services. Breakdown of revenue is as follows: 2013 US$'000 Sale of personal technology products and services - desktop computer - notebook computer - mobile internet and digital home - others...

  • Page 146
    ... (b) Finance costs 2013 US$'000 Interest on bank loans and overdrafts Factoring cost Commitment fee Interest on contingent considerations and put option liability Others 12,592 14,358 5,907 9,103 909 42,869 2012 US$'000 7,794 21,955 6,130 4,911 2,694 43,484 144 Lenovo Group Limited 2012/13 Annual...

  • Page 147
    ... are operating. The tax (charge)/credit relating to components of other comprehensive income is as follows: 2013 Before tax US$'000 Fair value change on available-for-sale financial assets Fair value change on cash flow hedges Actuarial loss from defined benefit pension plans Currency translation...

  • Page 148
    ... FINANCIAL STATEMENTS 10 Employee benefit costs 2013 US$'000 Wages and salaries Social security costs Long-term incentive awards granted (Notes 30(a)) Pension costs - Defined contribution plans - Defined benefit plans (Note 36) Others 1,665,223 148,311 77,724 131,847 22,601 313,887 2,359,593 2012...

  • Page 149
    ... with the performance bonuses for the two years ended March 31, 2012 and 2011 respectively. Details of the long-term incentive program of the Company are set out in Note 30(a). The fair value of the employee services received in exchange for the grant of the long-term incentive awards is recognized...

  • Page 150
    ...-term incentive program. 57,560,317 shares of the Company, representing the consideration shares in respect of the acquisition of Medion AG ("Medion") which serve as security for any potential damages were issued to the seller on February 15, 2013. - 148 Lenovo Group Limited 2012/13 Annual Report

  • Page 151
    ... been acquired at fair value (determined as the average periodic market share price of the Company's shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have...

  • Page 152
    NOTES TO THE FINANCIAL STATEMENTS 14 Property, plant and equipment (a) Group Freehold land and buildings US$'000 At April 1, 2011 Cost Accumulated depreciation and impairment losses Net book amount Year ended March 31, 2012 Opening net book amount Exchange adjustment Reclassification Additions ...

  • Page 153
    ... plant and equipment (continued) (b) Company Leasehold improvements US$'000 At April 1, 2011 Cost Accumulated depreciation Net book amount Year ended March 31, 2012 Opening net book amount Exchange adjustment Additions Disposals Depreciation Closing net book amount At March 31, 2012 Cost Accumulated...

  • Page 154
    ... 2,349 103,986 Company Internal use software 2013 US$'000 4,607 2 - 17,834 - (18,476) - - - 3,967 2012 US$'000 3,602 10 - 28,543 - (27,548) - - - 4,607 No interest expenses were capitalized in construction-in-progress as at March 31, 2013 and 2012. 152 Lenovo Group Limited 2012/13 Annual Report

  • Page 155
    ... (2012: US$58,789,000) and US$6,680,000 (2012: US$3,412,000) are included in the 'cost of sales', 'selling and distribution expenses', 'administrative expenses' and 'research and development expenses' in the consolidated income statement respectively. 2012/13 Annual Report Lenovo Group Limited 153

  • Page 156
    NOTES TO THE FINANCIAL STATEMENTS 17 Intangible assets (b) Company (continued) Internal use software US$'000 At April 1, 2011 Cost Accumulated amortization Net book amount Year ended March 31, 2012 Opening net book amount Exchange adjustment Transfer from construction-in-progress Additions ...

  • Page 157
    ... into more consumer-focused offerings over time. The goodwill has been allocated to the North America and EMEA market segments. On December 29, 2012, the Group completed the formation of a strategic partnership with EMC Corporation ("EMC") (Note 37). The strategic partnership consists of three...

  • Page 158
    ... are as follows: 2013 China APLA EMEA North America REM West Europe Japan, Australia, New Zealand 9% -1% -2% -1% N/A N/A N/A 2012 11.5% N/A N/A 1.0% 7.3% (1.9%) 0.2% Management determined budgeted gross margins based on past performance and its expectations for the market development. The weighted...

  • Page 159
    ... Investment Limited. Notes: (i) (ii) The associates and jointly controlled entities operate principally in their respective places of establishment. The English name of each company is a direct translation or transliteration of its Chinese registered name. 2012/13 Annual Report Lenovo Group Limited...

  • Page 160
    ...595,224 62,952 459,930 9,344,946 At March 31, 2012 Trade payables Notes payable Derivative financial liabilities Other payables and payables Bank borrowings Contingent considerations under other non-current liabilities - - 35,337 - - 428,915 464,252 158 Lenovo Group Limited 2012/13 Annual Report

  • Page 161
    ... 300,000 1,295,429 796 31,637 1,104,471 256,093 1,392,997 At March 31, 2012 Derivative financial liabilities Other payables and accruals Amounts due to subsidiaries Contingent consideration under other non-current liabilities 796 - - 256,093 256,889 2012/13 Annual Report Lenovo Group Limited 159

  • Page 162
    ... the taxes relate to the same tax authority and where offsetting is legally enforceable. The following amounts, determined after appropriate offsetting, are shown separately on the consolidated balance sheet: Group 2013 US$'000 Deferred income tax assets: Recovered within 12 months Recovered after...

  • Page 163
    ...of tax losses will expire as follows: Group 2013 US$'000 Expiring in - 2012 - 2014 - 2015 - 2016 - 2017 - 2018 - 2019 - 2021 - 2022 2012 US$'000 - 13,051 6,423 2,177 35,631 115,722 4,489 11,275 174,128 362,896 754 14,525 6,795 2,168 44,067 8,213 4,865 - - 81,387 2012/13 Annual Report Lenovo Group...

  • Page 164
    ... 78,689 (120) (36,337) 10,055 - 19,659 71,946 512 59,113 12,321 71,946 23 Inventories Group 2013 US$'000 Raw materials and work-in-progress Finished goods Service parts 884,591 910,666 169,534 1,964,791 2012 US$'000 484,314 613,962 120,218 1,218,494 162 Lenovo Group Limited 2012/13 Annual Report

  • Page 165
    ...) 23,527 (9,261) (13,653) 7,559 36,920 2012 US$'000 21,081 (165) 24,163 (12,076) (3,606) - 29,397 2012 US$'000 232,556 23,741 7,634 18,835 282,766 Notes receivable of the Group are bank accepted notes mainly with maturity dates of within six months. 2012/13 Annual Report Lenovo Group Limited 163

  • Page 166
    ... subcontractors for part components sold in the ordinary course of business. The Group defers the cost of shipped products awaiting revenue recognition until the goods are delivered and revenue is recognized. In-transit product shipments to customers of US$180 million as at March 31, 2013 (2012: US...

  • Page 167
    ... and electronic equipments upon return from end-customers and with reference to the historical or projected future return rate. Environmental restoration provision is reviewed at least annually to assess its adequacy to meet the Group's obligation. 2012/13 Annual Report Lenovo Group Limited 165

  • Page 168
    ...bank borrowings are unsecured and the effective annual interest rates at March 31, 2013 are as follows: United States dollar 2013 Term loans Short-term loans 2.3%-2.45% N/A 2012 N/A 3.5%-5.45% Other currencies 2013 5.54%-12.92% 3.5%-12.92% 2012 N/A 5% 166 Lenovo Group Limited 2012/13 Annual Report

  • Page 169
    ... at their fair values as a result of change in the expected performance at each balance sheet date, with any resulting gain or loss recognized in the consolidated income statement. Deferred consideration is subsequently measured at amortized cost. On October 11, 2012, the Group entered into an...

  • Page 170
    ... towards enhancing the value of the Company and its shares by aligning their interests with those of the shareholders of the Company. The Company also approved a share-based compensation package for non-executive directors. Under the long-term incentive program, the Company may grant awards, at its...

  • Page 171
    ...The fair values of the SARs awarded under the long-term incentive program were calculated by applying a BlackScholes pricing model. For the year ended March 31, 2013, the model inputs were the fair value (i.e. market value) of the Company's shares at the grant date, taking into account the expected...

  • Page 172
    ... 2012 Number of outstanding share options 139,638,051 (31,761,000) (15,216,000) 92,661,051 No share options were granted or cancelled by the Company during the years ended March 31, 2012 and 2013. Details of share options exercised during the year ended March 31, 2013 are as follows: Market value...

  • Page 173
    30 Share capital (ii) (continued) (b) Share options (continued) (continued) Details of share options exercised during the year ended March 31, 2012 are as follows: Market value per ordinary share at exercise date HK$ 4....7,420,000 1,000,000 31,761,000 2012/13 Annual Report Lenovo Group Limited 171

  • Page 174
    ... shares Exercise of share options Repurchase of shares Vesting of shares under long-term incentive program Share-based compensation Dividends paid At March 31, 2013 At April 1, 2011 Interest rate swap contracts - Fair value loss, net of taxes - Reclassified to income statement Loss for the year...

  • Page 175
    ... significant related party transactions in the normal course of business during the year: 2013 US$'000 2012 US$'000 (IGRS Engineering Lab Limited) (an associate) - Purchase of goods (Beijing Legendsoft International Technology Company Limited) (an associate) - Purchase of goods - Service income...

  • Page 176
    ... operations 2013 US$'000 Profit before taxation Share of losses of associates and jointly controlled entities Finance income Finance costs Depreciation of property, plant and equipment and amortization of prepaid lease payments Amortization of intangible assets and share-based compensation Loss on...

  • Page 177
    ... features, including benefits based on a final pay formula. This plan is closed to new entrants. On the business combinations of NEC personal computer division and Medion, the Group assumed the cash balance pension liability and end-of-employment benefit obligation for all employees from the then...

  • Page 178
    ... the long term expected rate of return on each of the asset classes that the plan was invested in at the balance sheet date. (b) Post-employment medical benefits The Group operates a number of post-employment medical benefit schemes, principally in the US. The method of accounting, assumptions and...

  • Page 179
    ... value of plan assets of the Group: Pension 2013 US$'000 Opening fair value Exchange adjustment Expected return on plan assets Actuarial gains/(losses) Contributions by the employer Contributions by plan participants Benefits paid Acquisition of subsidiaries Closing fair value Actual return on plan...

  • Page 180
    ...% of the issued share capital of Stoneware, a company incorporated in the United States. Stoneware is a company in the business of development and sale of cloud computing related software. On December 29, 2012, the Group completed the formation of a strategic partnership with EMC which consists of...

  • Page 181
    ... stated above are on a provisional basis. Acquisition-related costs incurred in connection with these business combination activities of approximately US$5.7 million have been recognized as administrative expenses in the consolidated income statement. 2012/13 Annual Report Lenovo Group Limited 179

  • Page 182
    ...% - Chinese Mainland (LCFC (Hefei) Electronics Technology Co., Ltd.) (wholly foreign-owned enterprise) Lenovo (Asia Pacific) Limited Hong Kong US$100,000,000 51% - HK$1,225,130,735 100% 100% Investment holding and distribution of IT products 180 Lenovo Group Limited 2012/13 Annual Report

  • Page 183
    ... issued capital held 2013 2012 100% Principal activities Chinese Mainland (Beijing Lenovo Software Limited)1 (wholly foreign-owned enterprise) Lenovo (Australia & New Zealand) Pty Limited Lenovo (Belgium) BVBA Australia HK$5,000,000 100% Provision of IT services and distribution of IT products...

  • Page 184
    ... Distribution of IT products Trading of mobile phone and accessories Manufacturing and distribution of IT products and provision of IT services Chinese Mainland (Lenovo Mobile Communication Technology Ltd.)1 (Chinese-foreign equity joint venture) Lenovo PC HK Limited Hong Kong RMB187,500,000 100...

  • Page 185
    ...registered name. Medion AG is a publicly traded German stock corporation listed on the Frankfurt am Main stock exchange. (iii) (iv) 40 Approval of financial statements The financial statements were approved by the board of directors on May 23, 2013. 2012/13 Annual Report Lenovo Group Limited 183

  • Page 186
    ...YEAR FINANCIAL SUMMARY Consolidated income statement 2013 US$'000 Revenue Profit/(loss) before taxation Taxation Profit/(loss) for the year Profit/(loss) attributable to: Equity holders of the Company...56) (2.56) Consolidated balance sheet 2013 US$'000 Non-...Lenovo Group Limited 2012/13 Annual Report

  • Page 187
    ...N.A. 14th Floor, 388 Greenwich Street, New York, NY 10013, USA COMPANY SECRETARY Mr. Mok Chung Fu STOCK CODES Hong Kong Stock Exchange: American Depositary Receipts: 992 LNVGY REGISTERED OFFICE 23rd Floor, Lincoln House, Taikoo Place, 979 King's Road, Quarry Bay, Hong Kong WEBSITE www.lenovo.com

  • Page 188
    ww o n e w.l m o c vo. This report is printed on environmentally friendly paper manufactured from elemental chlorine-free pulp Printed on chemistry free plate system and soy ink