|Type||Public company (Red chip)|
|Headquarters||Beijing, China; Morrisville, North Carolina, United States; Singapore|
|Key people||Liu Chuanzhi, Chairman
Yang Yuanqing, CEO
|Revenue||▼ $ 14.901 billion (2009)|
|Operating income||▼ $ 210.1 million (2009)|
|Net income||▼ $ 226.3 million (2009)|
|Total assets||▼ $ 6.308 billion (2009)|
|Total equity||▼ $ 1.310 billion (2009)|
|Employees||Approx. 23,000 (2008)|
Lenovo Group Limited (SEHK: 0992, OTCBB: LNVGY) is a multinational technology corporation that develops, manufactures and markets desktops and notebook personal computers, workstations, servers, storage drives, IT management software, and related services. Incorporated as Legend in Hong Kong in 1988, Lenovo's principal operations are currently located in Morrisville, North Carolina in the United States, Beijing, China, and Singapore, with research centers in those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in Kanagawa Prefecture, Japan. Lenovo acquired the former IBM PC Company Division, which marketed the ThinkPad line of notebook PCs, in 2005 for approximately $1.75 billion.
Lenovo is the fourth largest seller of personal computers in the world. The company is the largest seller of PCs in China, with a 28.6% share of the China market, according to research firm IDC in July, 2009. It reported annual sales of $14.9 billion for the fiscal year ending 2008/2009 (ending March 31, 2009).
Lenovo markets its products directly to consumers, small to medium size businesses, and large enterprises, as well as through online sales, company-owned stores (in China only), chain retailers, and major technology distributors and vendors.
On September 4, 2009, Oceanwide Holdings Group, a private investment firm based in Beijing, bought 29% of Legend Holdings, the parent company of Lenovo, for 2.76 billion yuan ($404.1 million). Legend Holdings is the asset management unit of the Chinese Academy of Sciences.
On November 27, 2009, Lenovo Group announced its intention to purchase Lenovo Mobile Communication Technology. Lenovo Mobile now ranks No.3 in China’s mobile handset market.
Lenovo makes a variety of products for world wide sale. These products include:
An agreement allows Lenovo to sell IBM-branded desktops and laptops until 2010.
As of October 31, 2008, 50.4% of Lenovo is owned by public shareholders, 42.3% by Legend Holdings Limited, 6.6% by Texas Pacific Group (TPG Capital), General Atlantic LLC and Newbridge Capital and 0.7% by the directors. Because the Chinese Academy of Sciences, a Chinese government agency, owns 65% of Legend Holdings, effectively the Chinese government owns about 27% of Lenovo and is the largest shareholder.
IBM became the owner of 18.9% of Lenovo in 2005 as part of Lenovo's acquisition of the IBM personal computing division. Since then IBM has steadily lowered its shareholding in Lenovo. In July 2008 the IBM shareholding went below the 5% reporting disclosure threshold. In February 2009 the CEO Bill Amelio was replaced with Yang Yuanqing.
"Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", pseudo-Latin for "new". The Chinese name (simplified Chinese: 联想; traditional Chinese: 聯想; pinyin: liánxiǎng) means "association" or "connected thinking" but can also imply creativity. The name was changed from Legend because it conflicted with other trademarks registered in the West.