Lenovo Happy Investors, Despite Lenovo’s First Loss in Six Years

Executive Summary

• On November 12, Lenovo reported a net loss of US$714 million in its second-quarter results for fiscal year 2016.
• The loss was the first in six years, but the results were better than analysts had anticipated.
• Lenovo faces declining PC sales and growing competition in smartphones in China.
• One-off costs impacted profits, but a restructuring is expected to improve the company’s competitiveness.