Lenovo Group Ltd. (HKSE: 0992) (LNVGY)

[revlis]

Lenovo to Establish Internet-Focused Smart Device Company in China Next Year

Hong Kong, Oct. 15, 2014 – Today, Lenovo Group (HKSE: 992) (ADR: LNVGY) is announcing that it will create a new company focused on building a leading internet-based smart devices and services business in China. The company will become operational on April 1, 2015. It will operate under a separate name and brand.

The objective of this move is to help Lenovo attack the fast growing consumer mobile device market in China, with a focus not only on devices, but also on software and application development and close customer engagement. Currently Lenovo has a leading smartphone business, which sells mainly through open market sales and carrier relationships. While Lenovo has and continues to strengthen its own company-branded online channels as part of its go-to-market strategy, the new company will exclusively focus on direct-to-consumer sales, marketing and product development using an internet-based business model.

Effective April 1, Chen Xudong, currently president of Lenovo’s China geography and Asia Pacific – Emerging Markets (East Asia, Hong Kong, ASEAN and India), will become CEO of this new company. He has substantial marketing, sales and operational experience, and a proven track record in building Lenovo’s China business to record levels in PC, tablet and smartphone.

Liu Jun, executive vice president and head of Lenovo’s Mobile Business Group, and George He, senior vice president and head of Lenovo’s Ecosystem and Cloud Services Group, will be the co-chairmen.

Tong Fuyao, currently vice president of China’s relationship business will become head of Lenovo’s China business. Ken Wong, currently vice president and general manager of Asia Pacific – Emerging Markets (East Asia, Hong Kong, ASEAN and India) will become head of this business, a role also previously held by Chen Xudong. Both will report to Gianfranco Lanci, Lenovo’s chief operating officer and head of the company’s Personal Computer Group.

In the next few months, details about legal structure, financing plans, business strategy, product plans and organizational structure will be announced. During this time, Chen Xudong will continue to lead the China and APEM business. At this time the company is not releasing further operational, financial or structural details.

http://news.lenovo.com/article_display.cfm?article_id=1852