Lenovo witnesses rise in full-year revenues

On Thursday, world's biggest PC maker Lenovo said that its revenue rose 20% in its past fiscal year. However, net profits grew by just 1% to $829m due to increased operating expenses.

The net profit was slightly below the expected net average of $830.2 million by 26 analysts polled by Bloomberg News. It said that it was the slowest net profit growth in five years. The PC maker had seen its net profit rise 29% in the previous financial year, due to smartphone sales.

Rise in full-year revenues was happened due to purchase of Motorola and IBM's low-end server unit last year in order to diversify in the smartphone market.

Revenues for the year to the end of March rose to $46.3bn. The firm's mobile phone business contributed $9.14bn of the total revenues. The revenues have been helped by the purchase of Motorola in 2014.

The pc maker said that it had been another record year for the company with a more diversified business. Revenue from the company's mobile business including Motorola increased 71% year-on-year to $9.14 billion.

The company said, "The rise of new technology and market trends, particularly the social mobile Internet, has posed market opportunities and challenges as consumer behaviour is changing”.

Company’s smartphone shipments grew more than 50% year-on-year to 76 million worldwide. The shipments were driven by aggressive business expansion in emerging markets outside of China from Lenovo brand products and strong growth of the Motorola brand products.

The group's non-PC revenue contribution rose to 28% from 18% in the same period last year. The operating expenses were up almost 40% at $5.57 billion.

According to Simsen Financial Group associate director Jackson Wong, the results were a good sign. However, the investors are hoping that the company will speed up the development of its mobile business.