Lenovo

Lenovo Group Limited (SEHK: 0992, OTCBB: LNVGY) (Chinese: 联想集团; pinyin: Liánxiǎng jítuán) is a Chinese bunch claimed technology aggregation that develops, articles and markets desktop and anthology computers, workstations, servers, accumulator drives, IT administration software, and added accompanying articles and services. Lenovo was congenital in Hong Kong in 1988 beneath its antecedent name, Legend.3 Lenovo's arch operations are currently amid in Morrisville, North Carolina, Beijing, China and Singapore.

Lenovo is the world's additional better PC maker and markets the ThinkPad band of anthology PCs and ThinkCentre band of desktops4. These brands became allotment of Lenovo's offerings afterwards its 2005 accretion of IBM's claimed computer business. Lenovo additionally sells the IdeaPad band of anthology computers. Lenovo markets its articles anon to consumers, baby to average admeasurement businesses, and ample enterprises, as able-bodied as through online sales, company-owned stores, alternation retailers, and above technology distributors and vendors

Financials and market share

Lenovo is a all-around Fortune 500 aggregation with a appropriate focus on claimed computers with anniversary sales of over $21 billion. Lenovo is the ascendant supplier of computers in acreage China and the additional better computer maker by aggregate in the world. After years of amplification and abundant acquisitions Lenovo became the world's additional better supplier of claimed computers in the apple during the third division of 2011.

Thanks to accelerated sales advance in all markets, Lenovo allowable about 13.5% of the common computer bazaar as of October 2011. The company's amplification was additional in allotment by the collective bell-ringer with NEC in Japan and advancing business to both the able and consumer. Yang Yuanqing said that Lenovo would abide its amplification by absorption on abstruse aggregation in the areas of acute phones, tablets, claimed computers, and "smart TV." "We charge bear a abundant user acquaintance beyond all platforms to accomplish our ambition and become the arch claimed technology aggregation in the world," he stated.

In the additional division of 2011, Lenovo was the third better bell-ringer of claimed computers in the world.19 For the year catastrophe with third division 2010, its bazaar allotment added from 8.6 percent to 10.4 percent.20 The aggregation is the better agent of PCs in China, with a 28.6% allotment of the China market, according to analysis close IDC in July, 2009. It appear anniversary sales of $14.9 billion for the budgetary year catastrophe 2008/2009 (ending March 31, 2009).

During the aboriginal division of 2011 Lenovo controlled 31.7% of the Chinese claimed computer bazaar back abstinent by units sold. Lenovo appear a 98.3 percent acceleration in accumulation to $108.8 actor during the aboriginal division of 2011, up from $54.86 actor during the aforementioned division of the antecedent year. Lenovo alien 10.28 actor claimed computers in the aboriginal division of 2011.

In May 2011, Lenovo appear fourth-quarter balance of $42 actor on sales of $4.88 billion. Wall Street was assured acquirement of $5.08 billion, according to Thomson Reuters

Ownership

As of October 1, 2011, 58% of Lenovo banal was captivated by the accepted public, 34% by Legend Backing Limited, and 8% by added entities. The Chinese Academy of Sciences owns 36% of Legend Holdings.22

On September 4, 2009, Oceanwide Backing Group, a clandestine advance close based in Beijing, bought 29% of Legend Holdings, the ancestor aggregation of Lenovo, for 2.76 billion yuan.23

IBM acquired a 18.9% allotment of Lenovo in 2005 as allotment of Lenovo's acquirement of IBM's claimed accretion division.24 Since again IBM has steadily bargain its backing of Lenovo stock. In July 2008 the IBM's absorption in Lenovo fell beneath the 5% beginning that mandating accessible disclosure.25

In November 2010, it was appear that clandestine disinterestedness firms TPG Capital and Accepted Atlantic were gluttonous to avenue Lenovo with a HK$1.56 billion allotment placement.26

Responding to claims that Lenovo is a accompaniment endemic action CEO Yang Yuanqing said: "Our aggregation is a 100% market-oriented company. Some bodies accept said we are a state-owned enterprise. It's 100% not true. In 1984 the Chinese Academy of Sci-ences alone invested $25,000 in our company. The purpose of the Chinese Academy of Sciences to advance in this aggregation was that they capital to commercialize their analysis results. The Chinese Academy of Sciences is a authentic analysis article in China, endemic by the government. From this point, you could say we're altered from state-owned enterprises. Secondly, afterwards this investment, this aggregation is run absolutely by the founders and administration team. The government has never been complex in our circadian operation, in important decisions, cardinal direction, choice of the CEO and top admiral and banking management. Everything is done by our administration team."27

Yang badly added his buying pale in by accepting 797 actor shares in 2011. As of June 2011, Yang owns an 8 percent pale in Lenovo. He ahead endemic alone 70 actor shares. In a statement, Yang said, "While the transaction is a claimed banking matter, I appetite to be actual ablaze that my accommodation to accomplish this advance is based on my able acceptance in the company's actual ablaze future. Our ability is congenital on charge and buying - we do what we say, and we own what we do. My accommodation to access my backing represents my abiding acceptance in these principles