Yang Yuanqing reduced holdings of Lenovo shares 11 times in two years

Lenovo’s performance continues to improve, and stock prices have also been rising. With the rise of Lenovo's stock price, Lenovo Group Chairman Yang Yuanqing's efforts to reduce Lenovo's stock prices are also increasing.

Recently, Yang Yuanqing continuously reduced 40 million Lenovo Group shares and cashed in 370 million Hong Kong dollars. In addition, other shareholders, Ma Xuezheng, Zhu Linan, and Tian Suning have small-scale reduction actions. For Yang Yuanqing and other holders of the high-end reduction, there is a voice that this is not optimistic about Lenovo's market performance. However, Lenovo said that Yang Yuanqing had previously borrowed to buy Lenovo shares. Individuals were burdened with heavy debt pressure, and holdings of some of the stocks on rallies was used to repay debts. It was entirely reasonable and reasonable. There was no pessimistic outlook on Lenovo's outlook. In a recent press conference for the Lenovo Group's fiscal second quarter of fiscal year 2013-2014, Yang Yuanqing also said in an interview with a Southern Metropolitan reporter that he is confident in the future of Lenovo.

11 consecutive reductions or debt repayments According to the announcement of the Hong Kong Stock Exchange, Yang Yuanqing reduced holdings of 40 million shares of Lenovo Group Co., Ltd. at a price of HK$9.01 to HK$9.44 per share from November 18 to 21, respectively. HK$100 million, shareholding dropped from 7.92% to 7.68%.

The reporter asked the Stock Exchange for public information and found that since February 2012, Yang Yuanqing has continuously reduced his holdings of shares. On February 28th and February 29th, 2012, the company reduced shares of Lenovo Group with a total of approximately 1.6 million shares and cashed in approximately HK$11 million. In December 2012, Yang Yuanqing cumulatively reduced 29 million Lenovo Group shares each time. The average price was HK$7.04, and cash was approximately HK$204 million. On February 22 this year, Yang Yuanqing reduced 20 million shares of the company's stock at an average price of 8.304 HKD each, cashed in 166 million Hong Kong dollars; in September of this year, Yang Yuanqing reduced 15 million shares in Lenovo. Group shares, cashed 113 million yuan. Together with the 4 consecutive holdings, Yang Yuanqing has reduced Lenovo's shares for 11 consecutive times. With the continued reduction of Yang Yuanqing, Lenovo's share price has continued to rise and has risen from the lowest point of 2009 of 1.32 Hong Kong dollars to the current 9.21 Hong Kong dollars. Since Yang Yuanqing served as chairman of Lenovo Group, the market value of Lenovo Group has increased from HK$40 billion to HK$95 billion.

As the PC market continues to shrink, so there is a voice in the market that Yang Yuanqing's high reduction behavior is not optimistic about Lenovo's market performance. For this statement, the relevant person in charge of the marketing department of Lenovo Group stated that Yang Yuanqing borrowed 3.1 billion Hong Kong dollars to purchase 8% of Lenovo Group's shares in 2011, and for this reason he carried a heavy debt burden. Yang Yuanqing's reductions were mainly used to repay loans and interest, and there was no such thing as high cash, let alone a pessimistic view of Lenovo.

On June 17, 2011, Yang Yuanqing purchased 8% of Lenovo Group’s shares from Legend Holdings’ parent company Lenovo Holdings, a total of 797 million shares at HK$3.95 each, which cost HK$3.15 billion. As Lenovo's stock prices continued to rise, Yang Yuanqing had bought shares of HK$3.15 billion, and his book wealth had increased by about HK$4 billion.

Lenovo's growth momentum The driving force of Lenovo's rising stock prices is naturally its growing performance.

On November 7th, Lenovo Group announced the financial report for the second quarter of fiscal year 2013-2014. The financial report shows that as of September 30, 2013, Lenovo Group's second fiscal quarter turnover reached 9.8 billion US dollars, an increase of 13%. Net profit was $220 million, an increase of 36% over the same period last year. According to the financial report, Lenovo sold a total of 29 million devices worldwide in the second fiscal quarter. Eighteen consecutive quarters outperformed the overall industry growth.

Compared with the growth of Lenovo, PC giants such as Hewlett-Packard, Dell, Acer, Asus, etc., both in terms of shipments and profits, have experienced significant declines in consecutive quarters, so that Dell has continued to accelerate privatization. Acer founder Shi Zhenrong had to go out of the mountain to save the crisis.

Yang Yuanqing said in an interview with Southern Metropolis Daily on November 7th that in the third quarter of this year, Lenovo’s comprehensive sales of personal computers and tablet PCs ranked second in the world, and it was also the third largest global smart terminal manufacturer (including smart Mobile phones, tablets, and personal computers, sales rose 36% year-on-year. At the same time, Lenovo continues to be the world’s fourth-largest supplier of smartphones, with a year-on-year increase of 78% in sales. “We are optimistic about the future market development, driven by the wave of corporate replacements and the recovery in the Chinese market, the personal computer market will gradually recover, and the transition of tablet PCs to mainstream entry and emerging markets will continue. These are all In areas where Lenovo excels, we are confident in grasping the opportunities and maintaining strong growth.