November 15, 2024 — Lenovo Group (HKSE: 992) (ADR: LNVGY) released its results report for the second fiscal quarter of FY24/25 (ending September 30, 2024), with revenue of $17.85 billion, exceeding analysts' estimates of $16.33 billion. Net profit of $0.3585 billion also exceeded the estimate of $0.3433 billion. The turnover of all main businesses achieved double-digit year-on-year growth, and hybrid artificial intelligence (Hybrid AI) has begun to bear fruit, demonstrating Lenovo's innovative breakthrough in the field of artificial intelligence. With its strong technical strength and global layout, Lenovo has integrated cloud, edge, and terminal computing resources through hybrid artificial intelligence to create an AI ecosystem covering hardware, software, and solutions, and further promote the digital transformation of enterprises and customers.

Hybrid artificial intelligence (Hybrid AI) is Lenovo's key strategy in the field of AI in recent years. By combining cloud computing, edge computing, and intelligent terminal equipment, it realizes efficient management and intelligent processing of data. Compared with traditional AI models, hybrid AI has significant advantages in data transmission speed, response time, energy efficiency, and privacy protection, meeting the higher needs of individuals and modern enterprises for AI computing flexibility and efficiency.

The Lenovo Group has been working in the field of AI hardware, software and solutions for many years, providing a solid foundation for the effective implementation of hybrid AI. By integrating cloud, edge, and terminal computing resources, Lenovo's hybrid AI solution can accurately allocate computing power to the most suitable location, achieve localized data processing and intelligent decision-making, greatly improve response speed and security, and help customers achieve greater efficiency in AI-driven scenarios.

Lenovo ISG (Infrastructure Solutions Group) has extensive experience in high-performance computing and data centers, providing a strong computing foundation for hybrid AI. This quarter, Lenovo launched liquid-cooled servers and hyperconverged architectures that support AI optimization to help enterprises effectively cope with the rapid growth in data storage and computing needs. Through a hybrid AI model, Lenovo's data center solutions can intelligently distribute computing tasks in the cloud and at the edge, reduce delays and save costs, and ensure that enterprises can achieve intelligent operations in the midst of massive data and real-time analysis requirements.

The Lenovo Smart Devices (IDG) segment is also playing an important role in hybrid AI. In the latest ThinkPad and Yoga series products, Lenovo incorporates local smart devices, including Xiaotian and AI Now. AI-driven intelligent functions enhance the convenience and personalization of the user experience. In addition, AI intelligent monitoring and privacy protection functions have also become a highlight, enhancing users' data privacy and security protection by automatically blocking the screen and detecting changes in the environment.

Lenovo Solutions & Services Group (SSG) continues to innovate in scenario-based applications of hybrid AI, providing customized AI solutions through cooperation with customers in different industries. This quarter, Lenovo launched hybrid AI solutions for scenarios such as intelligent manufacturing and smart cities. For example, Lenovo has introduced intelligent traffic management and environmental monitoring systems in smart city projects, using hybrid AI to collect and analyze traffic data in real time, providing intelligent support for urban traffic management and environmental governance. This solution not only improves the efficiency of government management, but also optimizes the life experience of citizens.

In order to accelerate the application of hybrid AI, Lenovo has actively strengthened cooperation with global technology companies to create a strong and diversified AI ecosystem. Cooperation with tech giants such as Microsoft, Google, and Amazon has enabled Lenovo to further strengthen its competitiveness in AI algorithm optimization, cloud computing, and data management. At the same time, through collaborative development with chip vendors NVIDIA, AMD, and Intel, Lenovo's data center products and smart devices have been significantly improved in terms of processor performance, providing strong hardware support for the deep application of hybrid AI.

This quarter, the application results of hybrid AI gradually became apparent, and Lenovo's solutions have received good feedback from customers in many industries. In the manufacturing industry, Lenovo helps customers achieve real-time monitoring and predictive maintenance of production lines, effectively reducing equipment failure rates and downtime; in the education industry, Lenovo's AI teaching support system provides teachers with personalized student data analysis, improving teaching efficiency; in the retail industry, intelligent AI customer analysis helps merchants better understand consumer needs and improve sales efficiency and customer satisfaction.

Lenovo Group said it will continue to increase investment in the AI field in the future, promote the further development of hybrid AI, and provide intelligent solutions to more industries and customers through global cooperation and diversified ecosystems. Through continuous innovation and technological breakthroughs, Lenovo is committed to promoting AI from laboratories to real life and providing strong support for the intelligent transformation of customers around the world. The company plans to accelerate the promotion and application of hybrid AI around the world, continuously enrich its AI solutions, and contribute to building a more intelligent, convenient and sustainable future.