FAQ

Lenovo stocks are traded on the Hong Kong Stock Exchange. Lenovo’s initial public offering was on February 14, 1994 at HK$1.33 per share (prior to 4-for-1 split)

HKSE: 992.hk
ADR (Level I): LNVGY

The par value is HK$0.025 per share.

Lenovo stock can be bought or sold through a stock broker, bank, or generally through a financial institution that provides brokerage services. Investors can buy Lenovo ordinary shares listed in Hong Kong (HKSE:992.hk), or Lenovo’s Level I American Depositary Receipts traded over the counter (ADR: LNVGY).

Lenovo had a four-for-one stock split in 2000.

The information can be reviewed in the Results and Financials section of the investor relations website.

Lenovo’s fiscal year runs from April 1 to March 31. Historically, we have released earnings in late January/early February, May, August and November.

Lenovo adopts a hybrid manufacturing system. We manufacture products in-house and also leverage a portion of our production activities via Original Design Manufacturers (ODMs). We sell component parts to subcontractors in the ordinary course of business to assemble into finished goods. When we sell component parts, we record non-trade receivables; when we buy back the finished goods from subcontractors, we record non-trade payables. Revenue or profit are not recorded when component parts are sold to subcontractors for the manufacturing of finished products which will be bought back.

This is a standard practice in the technology industry. As Lenovo is one of the world’s leading technology supply chain owners, we prefer to leverage our strong bargaining position to retain control over the procurement of components. Therefore we buy directly from suppliers at negotiated prices and contracts even though we hire ODMs to assemble the finished goods for us.

The historical dividend information can be reviewed in the Dividend History section of the investor relations website.

Lenovo adopts a dividend policy of providing shareholders with sustainable dividends on a semi-annual basis. The dividend payout is determined in line with the growth in the Group’s profit attributable to shareholders for the relevant financial period (taking into account adjustments for restructuring or other one-off non-cash items, if any), after considering factors including the Group’s operations, business plans and strategies, cash flows, financial conditions, operating and capital requirements and other contractual or regulatory restrictions. Whilst the Group does not intend to set a pre-determined dividend payout ratio, to allow for financial flexibility, the Group endeavors to strike a balance between shareholders’ interests and prudent capital management.

The key contributors include patents and technology acquired by DCG to develop its software-defined infrastructure business as well as other enhancements in software to our different business operation platforms that are vital to the growth of the business.

Our bad debt policy calls for a higher provision rate on older accounts receivable (AR). The percentage decrement since FY18/19 is mainly due to the continuous drop in overdue AR as a proportion of gross AR over the past two years. The provision rate increased by double-digits in the third quarter of FY19/20 as compared to the same period in FY18/19.

Allowance for billing adjustments relates primarily to allowances for future volume discounts, price protection, rebates, and customer sales returns. The trend of allowance for billing adjustments as percentage of total revenue over the past few years has been affected by the revenue mix and timing of settlement. In FY18/19 the percentage drop was mainly a consequence of the change in revenue mix by business group, as MBG’s proportion of revenue dropped from 22% in FY15/16 to 13% in FY18/19. In FY19/20, the percentage increased in relative terms due to the strategy to boost sales by offering more sales rebates for new products launched (particularly in view of the challenging market conditions during this period).

The Group records warranty provision at the time of sale for the estimated costs that will be incurred. The estimation basis is reviewed on an on-going basis and revised where appropriate, with reference to the number of sold units currently under warranty, historical and anticipated rates of warranty claims on those units, and the cost per claim to satisfy warranty obligations.

Lenovo was incorporated in Hong Kong in 1988 as Legend Holdings Limited and adopted the name of Lenovo Group Limited officially on April 1, 2004.

For more detailed information on the individuals and their biographies, please go to the Corporate Governance section of the investor relations website.

You can find the contact of the Investor Relations Department in the Contact Us section of the investor relations website.