According to the IDC's "2024 Q1 China x86 Server Market Report," Lenovo Group (00992) rose to the top three of China's server market on June 12th and is the only manufacturer with sales growth among the top five, with a year-on-year growth rate of 200%, leading the market by a large margin and far beyond the market average level. This also means that Lenovo's computing infrastructure has strongly entered the first camp of China, reshaping the market pattern of computing infrastructure in China.

According to IDC data, in the first quarter of 2024, the overall sales of China's x86 server market increased by 23.3% YoY, among which Lenovo's x86 servers showed a significant YoY growth of 200.2%, exceeding the market by nearly 177 percentage points, and increasing against the trend by 25.6% MoM. This is another milestone growth for Lenovo's servers after achieving significant growth in the fourth quarter of last year. In Q4 2023, Lenovo's server revenue in the domestic market increased by 79% MoM, with a growth rate ranking first in the China x86 server market and leading the market by 80 percentage points.

Chen Zhenkuan, Vice President of Lenovo Group and General Manager of the Chinese Infrastructure Business Group, stated that Lenovo, as China's leading intelligent IT infrastructure provider, has built a "one horizontal and five vertical" infrastructure product portfolio based on global wisdom and local innovation, covering a complete heterogeneous intelligent computing platform, servers, storage, data networks, software and hyper-convergence, edge computing and other infrastructure products and solutions. Lenovo has also won a large number of best practices and lighthouse cases in different fields such as general computing, high-performance computing, intelligent computing, and edge computing, working to support customers in achieving business success.

In recent years, Lenovo's servers have achieved balanced and rapid development in many vertical industries. Among them, they have achieved comprehensive coverage in leading Internet companies; won multiple large contracts in the operator market; their market share in the manufacturing industry jumped to the top three in the Chinese market in Q3 2023, with a growth rate of 103%; and in the education market, they lead the first camp in HPC and have created many lighthouse cases.

In February 2023, Lenovo Group launched its first localized server brand, Lenovo Wentian. It has now formed a server dual-brand strategy of "Lenovo Wentian + Lenovo ThinkSystem":

Lenovo Wentian product series focuses on the concept of "local innovation, agility and efficiency", providing customers with end-to-end all-round support through the use of domestic components, software and ecological configuration, as well as a dedicated local team of experts and service teams, and a quick response to users' needs.

Lenovo ThinkSystem product series focuses on "global wisdom, local delivery", and has accumulated rich technical strength and industry recognition. It not only has excellent performance across platforms and multiple workloads but also has industry-leading flexibility and reliability. It can stably and efficiently carry the important computing load of various industries and customers' businesses.

Looking at Lenovo Group's ISG infrastructure solution business, its Q4 revenue increased by 15% YoY, reaching a new high in revenue in the same period, with three consecutive quarters of QoQ growth. In addition, in multiple departments and product areas, including storage, software, services, high-performance computing, and edge computing, new sales records have been created.

At the Q4/FY2023 earnings conference call, Lenovo Group CFO Huang Weiming stated that in order to seize the opportunity of the potential AI customer market worth over 7 billion U.S. dollars, the ISG infrastructure solution business group announced more than ten new large-scale language model AI products, including nine systems based on Nvidia GPU and a brand-new system based on AMD MI300x. These products are equipped with Neptune technology's air and liquid cooling solutions and are built on the basis of over 80 AI-optimized products already available on the market.

Behind the strong product research and development capabilities is Lenovo's leading position and solid resilience in the global supply chain of computing equipment. On May 22nd, the world's most authoritative supply chain rankings, Gartner Top 25, announced the latest ranking for 2024, with Lenovo Group ranking among the top ten for three consecutive years. It is the only high-tech manufacturing enterprise in China and Asia-Pacific on the list. This is also Lenovo Group's 10th time on the list, maintaining the record of the most Chinese companies on the list. On May 29th, Lenovo Group received a strategic investment of 2 billion U.S. dollars from the Saudi sovereign wealth fund and will establish a new personal computer and server manufacturing base in Saudi Arabia, once again enhancing Lenovo Group's resilience and flexibility in strengthening its global supply chain.

Yang Yuanqing, Chairman and CEO of Lenovo Group, stated that looking ahead, AI servers will continue to grow at a rate twice the overall server market, and we will seize the growth opportunity by creating a rich product portfolio and excellent business opportunity conversion capabilities. We will also continue to leverage our existing strengths to capture steady growth opportunities in traditional computing servers, storage, software, and services.