This is a discussion on News on China's scientific and technological development. within the Members' Club Room forums, part of the China Defense & Military category; Lenovo Net Profit Surges 54% - WSJ.com Yep, net profit just casually surges 54% from previous year. 54% increase... That's ...
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Lenovo Net Profit Surges 54% - WSJ.com
Yep, net profit just casually surges 54% from previous year.
54% increase... That's pretty impressive right lol?
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Countries are rated big or small through comparing national strength and international influences. As big as Canada may be, it is still considered to be a small country in the big powers club. Seriously, who cares what Canada says or thinks. Even the West edmonton mall has more submarines than the Canadian navy (not exactly, until one of the only four caught on fire).Originally Posted by xywdx
Unless you are Russian, I dare say my country is bigger than yours.
In any case, I am not saying the technology is obsolete, there is just no need to keep up with the game at every single step, when you can obtain the end result with very little effort in comparison. What I mean is that it might take China 3-5 years to catch up now, but even if China don't do anything, 20 years later it would still take 3-5 years to catch up, and China has plenty of reserves to last 3-5 years no problem.
When I say necessity, I meant life or death. Consider what happens when another smaller scale cold war escalates between China and the US. The West launches another blockade against China. China's stockpile might last a year or two, but what happens afterwards? This is not new, supercomputers were in fact on the embargo list for China. It was not until very recent decades was this taken off the list. I'm sure the West could live with paying a bit more for their under-wears and toothpastes, but China's national infrastructure could fall apart without semiconductors.
---------- Post added at 12:32 AM ---------- Previous post was at 12:30 AM ----------
what region are you in? my girlfriend is moving to hobart for school, hopefully the video chatting wont be lagging.
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For a company of this caliber, that's huge.
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Most companies of this size would be throwing parties even for a 10%, maybe even 2% profit increase.
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China's wind power capacity hits 62.7 gigawatts in 2011
http://english.peopledaily.com.cn/90778/7725026.html
File photo taken on Oct. 3, 2011 shows Jishan Wind Power Plant in Duchang County, east China's Jiangxi Province. China installed 18 gigawatts of wind power turbines in 2011, capturing about 40 percent of the global total and pushing up China's total installed wind power capacity to 62.7 gigawatts, the Global Wind Energy Council (GWEC) said in a report on Feb. 7, 2012.
File photo taken on July 6, 2011 shows Laoyemiao Wind Power Plant in Duchang County, east China's Jiangxi Province. China installed 18 gigawatts of wind power turbines in 2011, capturing about 40 percent of the global total and pushing up China's total installed wind power capacity to 62.7 gigawatts, the Global Wind Energy Council (GWEC) said in a report on Feb. 7, 2012.
File photo taken on Nov. 10, 2011 shows Laoyemiao Wind Power Plant in Duchang County, east China's Jiangxi Province. China installed 18 gigawatts of wind power turbines in 2011, capturing about 40 percent of the global total and pushing up China's total installed wind power capacity to 62.7 gigawatts, the Global Wind Energy Council (GWEC) said in a report on Feb. 7, 2012.
File photo taken on Nov. 10, 2011 shows a worker watching a wind power turbine at Laoyemiao Wind Power Plant in Duchang County, east China's Jiangxi Province. China installed 18 gigawatts of wind power turbines in 2011, capturing about 40 percent of the global total and pushing up China's total installed wind power capacity to 62.7 gigawatts, the Global Wind Energy Council (GWEC) said in a report on Feb. 7, 2012.
Last edited by escobar; 02-10-2012 at 06:34 PM.
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54% is huge for a big company to grow like that. Probably the result from all the advertising Lenovo did in Transformers 3.
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You sure it's 54%, not 5.4%?? 54% growth for a company that size is almost impossible. Lenovo is THE biggest computer company in China and one of the major players in laptop market in the world.
Junior Member
From the article it definitely says 54% net profit. The 5.4% could be a rise in stock value percentage. That's a good question.
Junior Member
A multinational company growing that fast is almost unheard of. I don't know if any of our fellow posters who understand enough economics could do an analysis to see if a huge company that size can even theoretically expand that fast. To me, it sounds impossible even on paper...
Junior Member
I guess we have to wait and see if someone could answer that question.
Senior Member
Well we're "only" talking net profit which rae 54% from the same time last year. Not stocks or anything so yea.
And it's definitely 54% increase not 5.4%...
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Junior Member
it might be a typo in the article then. A 54% increase in net profit for a company that size? That's like more than doubling the size of the company in 2 years. I just did a calculation and found that if Lenovo grows like this, it will be 2.4 times its current size in 2 year...
Member
Well, it's said to be net profit, which can somewhat easier to achieve than gross sales figures. Even just switching one of four/five contractors could greatly reduce the cost and increase profit margins. Don't forget, the profit on a laptop is actually pretty low, considering the net profit is only about 1%-5% of the overall sales figures. Even just firing 100 engineers could save at least 5-10 million a year, which is already like 5% of the net profit. Lenovo has around 26,000 of those employees (no fabs, so majority would be highly paid talents).
I'm not saying the profit is achieved through firing people, just saying that a company this big could easily wiggle out some profit by simply streamlining few factors in their operation.
---------- Post added at 12:31 PM ---------- Previous post was at 12:22 PM ----------
Just found this off wikipedia (which was also quoted from a reliable source, of course), which confirms the following.
During the first quarter of 2011 Lenovo controlled 31.7% of the Chinese personal computer market when measured by units sold. Lenovo reported a 98.3 percent rise in profit to $108.8 million during the first quarter of 2011, up from $54.86 million during the same quarter of the previous year. Lenovo shipped 10.28 million personal computers in the first quarter of 2011.
Lenovo reported a 54-percent rise in profit for the third quarter of 2011, beating analyst predictions, in spite of slowing growth in sales and a shortage of hard drives.[22]
Don't forget, the following is just the Chinese market alone, which is only about half, if not less, of Lenovo's income. Consider its expansions in other regions, it's very easily achievable.
This could be easily understood using real life experiences. It would be hard to increase your annual income from 60 to 80 thousand. But you are careful, you can easily save 5000 dollars extra per year. That is the case here. Although the gross sales figures are astronomical, the net profit is actually quiet low.
Last edited by CottageLV; 02-10-2012 at 02:34 PM.
Senior Member
Well go search "lenovo" in the news section of your preferred engine.
It's not just WSJ reporting the 54% number, clearly it ain't a typo.
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You can easily verify more accurately than from the replies here by googling. When all the major media, especially the financial, reports as such, you can be sure you won't be fooled with a mistake in one decimal place. Especially when Lenovo said part of the increase came from overseas acquisitions.
Junior Member
Well, often they all just copy from the same source.
But really,for an economy China's size to grow 12-13% year-on-year was unheard of too. Until it happened.
Member
It's not strange because we are talking about profits, not revenues or the value of the company itself. You could have had large expenses last year that were not incurred this year, for example.
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