Lenovo Group Ltd S/Adr

Good morning and good evening. Welcome to Lenovo's Q1 earnings webcast. Thanks to everyone for joining us. This is Jenny Lai, Vice President of Investor Relations. Before we start, let me introduce our management team joining the call today. We have Lenovo's Chairman and CEO, Mr. Yang Yuanqing, Corporate President and... Hello everyone.

Thank you for joining us today. Last quarter, despite the global geopolitical uncertainties, we kicked off a new year with strong performance. We continue to drive both top-line and bottom-line growth. Our group revenue grew year-on-year for consecutive quarters and reached 12.5 billion U.S. dollars. Our pre-tax income was 240 million U.S. dollars and net income was 162 million U.S. dollars, both more than doubled year-on-year. This quarter's solid results start with our intelligent device group. Our PC and smart device business delivered an exceptional quarter, continuing double-digit revenue growth while achieving the highest fiscal first quarter profit, and further improved our industry-leading profitability. With America's and Asia Pacific achieving 20% and 40% year-on-year growth in revenue respectively, all four geographies delivered over $2 billion revenue, demonstrating the geographic balance and sustainability of our business. In PCs, our volume outgrow our already- recovery in the market by over 13 points to reach our all-time record share of 24% in the portfolio and continuing focus on operational excellence. This strategy enables us to significantly outgrow the market across high growth and premier categories, including workstation, thin and light, visual, gaming PCs, and Chromebook. Looking forward, we are confident that we will continue to drive premier to market growth and industry-leading profitability. We will achieve this by not only focusing on high growth and the premier categories, but also continue to drive innovation in the smart IoT area. Smartifying PC, like the world's first affordable PC and the 5G PC we announced last quarter. Developing new smart devices for homes and offices and capturing the greater opportunity commercial IoT. Our mobile business delivered another profitable quarter and improved pre-tax income year-on-year by US$100 million for the fourth consecutive quarter. In North America, our volume outgrew the market by more than 37 points

and the pre-tax income margin.