On October 5, Lenovo Group closed down 15.10% to HK$5.06 in the Hong Kong stock market. Lenovo Group fell by 23% in intraday trading, this happens to be the company’s worse decline in ten years.
Gizchina News of the week
A few days ago, there were reports that spies were able to infiltrate Apple and Amazon by inserting microchips the size of “a grain of rice” into Chinese-manufactured servers. According to the report, these malicious chips were secretly implanted and sold to Apple. All the parties involved (chip supplier, Apple, and Amazon) has since denied the report. Furthermore, there were suggestions that the microchip manufacturer is a regular Lenovo supplier. Lenovo Group said that the computer hardware manufacturer of the microchip is not a Lenovo supplier, and the company as an international company will also take a lot of measures to ensure that its supply chain is healthy.
On August 16, Lenovo Group announced its first quarter financial results for the 2018/19 fiscal year. According to the report, Lenovo’s revenue for the first quarter of this year surged 19% to US$11.9 billion, a record high for the same period of the previous year. Profit before tax was US$113 million, a year-on-year increase of US$182 million. Yang Yuanqing said that Lenovo has successfully crossed the turning point and entered a new stage of growth.