Lenovo Group announced plans to return to A, or continue to make efforts in the semiconductor field

On January 12, 2021, Lenovo Group Co., Ltd. (hereinafter referred to as “Lenovo Group”) announced on the Hong Kong Stock Exchange that the company submitted an announcement to The Stock Exchange of Hong Kong Limited, announcing that the board of directors has approved the possible issuance of Chinese Depository Receipts (CDRs). ), and apply to the Shanghai Stock Exchange’s Science and Technology Innovation Board for preliminary proposals for the listing and trading of CDRs.

The announcement shows that Lenovo Group plans to issue new ordinary shares of the company according to the proposal, accounting for no more than 10% of the company’s enlarged total issued ordinary shares. Lenovo Group intends to use the funds raised for research and development of new technologies, products and solutions, strategic investment in related industries, and to supplement the company’s working capital.

However, Lenovo Group said that the above-mentioned overall proposal for the issuance of CDRs and listing on the Science and Technology Innovation Board is subject to market conditions, shareholders’ approval and necessary approvals from relevant stock exchanges and regulatory agencies.

Return to A-shares and promote intelligent transformation and upgrading

According to the official website, Lenovo Group is a Fortune Global 500 company with an annual revenue of RMB 350 billion, dedicated to continuous research, design and manufacture of the world’s most complete end-to-end smart device and smart infrastructure product portfolio.

As a global leader in smart devices, Lenovo is strengthening its continuous innovation in smart devices such as PCs, tablets, smartphones, and smart displays.

On November 26, 2020, the latest list of the global supercomputer TOP500 was officially announced at the SC20 International High Performance Computing Conference. Among the 500 supercomputers with the strongest floating-point computing performance in the world, the supercomputer made by Lenovo was shortlisted for 180 units, exclusively 36% of the TOP500 supercomputing, ranking first in the global high-performance computing provider share.

The previously announced performance data shows that in the second fiscal quarter of the 20/21 fiscal year ended September 30, 2020, Lenovo Group’s revenue and profit both reached new highs, and all business segments achieved year-on-year growth, achieving the strongest performance in history: The single-quarter turnover exceeded the 100 billion yuan mark for the first time, reaching 100.5 billion yuan, a year-on-year increase of 7.4%. Among them, the business of personal computers and smart devices continued to grow, setting new records in terms of turnover and profit, and the PC market share ranked first in the world.

Lenovo Group announced plans to return to A, or continue to make efforts in the semiconductor field

Image source: Lenovo Group official micro

As the world’s top supplier of enterprise digitalization and intelligent solutions, in the face of a new round of global digitalization and intelligent transformation of industrial upgrading opportunities, Lenovo also proposed an intelligent transformation strategy, focusing on intelligent Internet of things, intelligent infrastructure, Strengthen the layout in three directions of industry intelligence.

At present, Lenovo is divided into four business groups: Intelligent Device Group (IDG), Data Center Business Group (DCG), Lenovo Venture Capital Group (LCIG), and Data Intelligence Business Group (DIBG). More than 180 countries and regions.

Regarding the plan to return to the A-share listing, Yang Yuanqing, chairman and CEO of Lenovo Group, said: It will help to strengthen the close connection between the company’s strategy and the booming domestic capital market, improve the convenience of mainland investors to invest in Lenovo, and further release Lenovo’s Value allows us to invest more in technological innovation, service transformation and intelligent transformation, and better promote the digital and intelligent transformation and upgrading of all walks of life.

“Investment + self-research”, to develop the semiconductor field

In addition to the continuous development of smart devices and other fields, since its establishment, Lenovo has also made efforts in the field of semiconductor chips.

According to official information, Lenovo’s investment in the semiconductor field is dominated by Lenovo Venture Capital and Legend Holdings. As of now, the number of semiconductor companies that Lenovo has invested in has exceeded 20, and the investment scope covers mobile phone chips, AI chips, autonomous driving chips, and IGBT chips. and other fields.

Among them, Lenovo Ventures is a global technology industry fund under Lenovo Group. Among these semiconductor companies, there are not many leading companies in some sub-fields.

For example, the Cambrian is the “first stock of AI chips”. As an important domestic IGBT manufacturer, BYD Semiconductor has introduced a number of strategic investors, including Lenovo, Hubei Xiaomi Changjiang Industrial Fund, Sequoia Capital, CICC Capital, and SDIC Innovation, etc. At present, BYD Semiconductor has issued an announcement and plans to list on the Science and Technology Innovation Board.

Image source: Lenovo Group official micro

Legend Holdings indirectly invests in the chip field through its subsidiaries Legend Star and Legend Capital. The number of investments exceeds 10. Among them, four companies, namely Spreadtrum Communications, Spectra, Fullhan Micro, and Apex, have been listed. Shanghai Huahong, Berkana and other four companies exited through mergers and acquisitions. In addition, Legend Capital has also invested in Yi Siwei, Fortior, Moxin Technology, Xinyi Microelectronics, etc.

Image source: Lenovo Group official micro

It is worth mentioning that Lenovo’s previous layout in the semiconductor field was mainly based on foreign investment, and it seldom adopted a self-research strategy.

However, at the end of 2020, Lenovo established a new company, New Sunshine (Tianjin) Technology Service Co., Ltd., whose business scope covers integrated circuit chips and product sales. It is wholly owned by Lenovo (Beijing) Co., Ltd., and Lenovo (Beijing) Co., Ltd. is 100% owned by Lenovo Group.

This means that in the future, Lenovo may adopt a combination of “investment + self-research” to further deploy the semiconductor field. After listing on the Science and Technology Innovation Board, Lenovo is also expected to increase investment to help the semiconductor industry achieve the goal of localization.

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