Personal computer maker Lenovo's (0992) net profit surged 62 percent year-on-year to a record high of US$640 million (HK$4.99 billion) in the last three months of 2021.
Revenue for the quarter ended last year rose 17 percent to US$20.1 billion, also a record and ahead of an average estimate of US$18.4 billion from 10 analysts, according to Refinitiv data.
Lenovo attributed the significant growth to accelerated digital transformation investments, new IT service requirements and the increasing popularity of cloud and hybrid working.
The company said worldwide demand for commercial PCs, excluding the Chromebook, in the quarter increased at the third-highest rate of growth since 1998. Customers were buying more premium, portable and high-quality PCs due to the growing prominence of remote working.
Chief executive and chairman Yang Yuanqing believes the hybrid work situation will remain a key driver for PC demand even after the pandemic.
In the last three months of 2021, Lenovo ranked the world's largest PC maker in terms of worldwide PC shipments with a 24.6 percent market share, according to consultancy Gartner.
For the April-December period last year, Lenovo recorded its net profit of approximately US$1.62 billion, up 76 percent year-on-year, and its revenue increased 22 percent to around US$54.92 billion.
Lenovo added that the global chip shortage remained a challenge while there were signs of easing in the second half of 2022 and it was on track to deliver its medium-term target of doubling its net income margin.
