HONG KONG, January 12, 2021 – Lenovo Group (HKSE: 992) (ADR: LNVGY) today filed to the stock exchange of Hong Kong that the board of directors of the company has approved the proposed issuance of Chinese depositary receipts (“CDRs”) and the application for listing and trading of the CDRs on the Science and Technology Innovation Board of the Shanghai Stock Exchange (the “STAR Market”).
Under the proposal, Lenovo intends to issue new ordinary shares that would represent no more than 10% of the total enlarged number of ordinary shares of the company. The proceeds from the issuance will be used for the company’s research and development of new technologies, products and solutions, strategic investments in related sectors, and replenishment of its working capital.
The proposed issuance and admission of CDRs is subject to market conditions, shareholders’ approval and the necessary approvals of relevant stock exchanges and regulatory authorities.
In the past two years, Lenovo has driven a strategy focused on intelligent transformation, committed to be the leader and enabler of intelligent transformation in all walks of life. Lenovo continues to grow and invest in its core business and meeting the explosive growth and demand for remote office, learning, and entertainment consumption under the “new normal” – from innovation in devices to the growing demand for cloud/infrastructure requirements. Alongside this, the Company has established new business units for cloud network convergence, data intelligence, and commercial IoT businesses, leveraging its technology advantages in smart IoT devices, cloud computing, edge computing and other fields. The technologies, services and solutions covering the new infrastructure of “Client-Edge-Cloud-Network-Intelligence” have already been delivered to customers in such industries as manufacturing, energy, transportation, education and others, enabling hundreds of large enterprise customers worldwide to achieve quality and efficiency improvements.
Latest IDC data on the global PC market has shown that for the calendar year 2020, global PC shipments increased by 13.1% year-on-year, of which the fourth quarter surged 26.1% year-on-year to 91.6 million units – well beyond analysts’ original forecasts. Among the top three manufacturers, Lenovo’s shipments grew by 29% year-on-year, retaining the number one ranking in the world with its global market share rising to 25.2% in the fourth quarter of calendar year 2020. In addition, the last year has seen Lenovo’s service-led intelligent transformation make significant progress. The results of the second quarter of the 2020/2021 fiscal year showed that the company’s software and service business revenue increased by 39% over the same period last year, setting a record high and becoming a new engine for the Group’s business growth.
Lenovo’s financial strength and sustainability has been further validated recently with inaugural investment grade ratings from Moody’s, Standard & Poor’s and Fitch, a successful global notes offering, and the addition of the company as an initial member of the new Hang Seng TECH Index that tracks the largest qualifying technology companies listed on the Hong Kong stock exchange.
“With Lenovo’s strong global presence and heritage in China, we are confident that this offering will help further realize Lenovo’s value by leveraging the booming China capital market at the same time enable investors in China to invest more easily. The offering will allow us to make greater investments in technologies and innovations, and better drive digital and intelligent transformation across industries,” said Yuanqing Yang, Lenovo Chairman and CEO. “With our core competencies of operational excellence and global sourcing local delivering approach, Lenovo will continue to seize the opportunities of digital and intelligent transformation and create long-term sustainable growth for our society and shareholders.”
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 63,000 employees and operating in 180 markets around the world. Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedIn, Facebook, Twitter, YouTube, Instagram, Weibo and read about the latest news via our StoryHub.