Focus on innovation ushered in a harvest period, and Lenovo Holdings (03396)'s profit increased 219% in the first half of the year

Technology is surging, only innovators advance. As disruptive technologies such as AI, physical intelligence, commercial aerospace, quantum technology, and controlled nuclear fusion gradually break through, companies that dare to “invest heavily” in R&D and “explore new paths” in unknown fields are turning technological dividends into enduring competitiveness through cycles.

On August 28, Lenovo Holdings confirmed its performance release potential brought by adhering to technological innovation under a long-term approach with a “rapid increase in both revenue and profit” financial report for the first half of 2026.

According to the data, the company's revenue during the reporting period increased 29% year on year to 362,935 billion yuan, and net profit to mother increased 219% year on year to 2,230 billion yuan. Excluding the one-time impact, net profit attributable to mother increased 834% year over year to $5.812 billion. Monetary cash holdings further increased to $79.474 billion.

The overall growth in various business indicators means that Lenovo Holdings' in-depth layout on the science and technology innovation circuit is gradually being transformed into a solid increase in the company's performance.

R&D investment of 10 billion dollars reached a record high in half a year, leading market position continued to be consolidated

Lenovo Holdings has always taken “innovation-driven” as its long-term strategy. This is not only the key to dealing with multiple challenges and maintaining steady growth in performance in the first half of the year, but also the deep logic of the company's ability to go through the cycle and move steadily and far-reaching.

During the reporting period, Lenovo Holdings' overall R&D investment reached 10 billion yuan, a record high for half a year, an increase of 18% over the previous year. Intense R&D investment is also an important reason why Lenovo Holdings' industrial sector can consolidate its leading position in the market.

Among them, Lenovo Group's three major business revenues all achieved double-digit growth, and all reached record highs: the PC business reached 24.2% in the global market share, increasing its lead for ten consecutive quarters; infrastructure solutions business revenue increased 62% year on year, and AI server order reserves reached 54 billion US dollars; revenue from both the cloud infrastructure and enterprise infrastructure sectors grew rapidly, and operating profit margins rose to 6.9%; and revenue related to artificial intelligence increased 64% year on year, accounting for 36%.

Lianhong Xinke has made many breakthroughs in R&D and innovation. Two core technologies have been included in national key R&D plans, 14 EOD projects have completed laboratory development, and 6 have been industrialized. The company has two world-leading EVA devices. The 50,000 tons/year PPC is currently the largest single PPC industrialized device in the world, which was put into operation in May 2026; 100,000 tons/year POE entered trial production. Meanwhile, XDI and PEEK projects are progressing at an accelerated pace, and are expected to be put into operation in 2027.

12 technology-based companies went public, and the science and innovation layout ushered in concentrated returns

While 10 billion R&D consolidated its leading market position in the industrial sector, the Lenovo Holdings' investment sector focused on the field of science and innovation and the business layout of serving the country's scientific and technological self-reliance during the reporting period, which also ushered in concentrated performance returns.

In the first half of the year, the entire Lenovo Holdings family promoted 12 companies to successfully enter the capital market, ranking first in the field of direct investment in the venture capital industry. These include Intelligent Spectrum (02513), Haizhi Technology (02706) in the field of AI; Tuopu CNC (07688) and Laifu Harmonics (03952) in the high-end manufacturing field; Hengyunchang (688785.SH), Aixin Yuanzhi (00600), and Shenghe Jingwei (688820.SH) in the field of medical services/biomedicine; Jingfeng Healthcare (02675), Ruibo Biotech (01609) in the field of medical services/biomedicine.

In the second half of the year, Lenovo Holdings promoted the listing of the first driverless driverless smart car in global mining areas (07687) and domestic DRAM leader Changxin Technology (688825.SH). Currently, more than 30 other companies are awaiting listing, including well-known companies such as Blue Rocket Aerospace, Kunlun Chip, Xinmai Semiconductor, Hairou Innovation, and Core Healthcare.

On the one hand, excellent technology companies that have invested continue to enter the harvest period, and on the other hand, long-term and unremitting investment in science and innovation has also allowed “fresh water from the source” to continue to flow into the Lenovo holding system. According to the report, Lenovo Holdings invested more than 80 new Chinese science and innovation enterprises in the first half of 2026, focusing on strategic emerging industries such as AI, optical interconnection, quantum technology, embodied intelligence, new materials, smart medical care, commercial space, and low-altitude economy.

Frontier technology forms a systematic layout to explore new models of original technology industrialization

Lenovo Holdings' impressive performance is inseparable from the country's policy dividends on continuing to increase scientific and technological innovation. Entering the “15th Five-Year Plan” period, the country further clarified that it will “accelerate self-reliance and self-improvement at a high level of science and technology” as the main line to lead the development of new quality productivity. The “15th Five-Year Plan” period will focus on building six major emerging pillar industries and forwardly lay out the six major future industries. Meanwhile, at the level of emerging industries and future industries, Lenovo Holdings has formed a systematic layout based on long-term accumulation, which is also reflected in this interim result.

In the field of artificial intelligence, the Lenovo holding system has formed a five-level in-depth layout of “basic layer - technology layer - model layer - platform layer - application layer”. It has invested in more than 300 AI companies, and is one of the investment institutions with the most complete system, the largest number of enterprises, and the longest duration in the AI investment field.

In the field of physical intelligence, Lenovo Holdings has invested in more than 50 companies to form a full chain layout from core components, models and data, to robot bodies and industry applications.

In the medical field, Lenovo Holdings currently manages more than 110 investee companies, including 25 biomedicine, 17 medical devices, and nearly 70 smart healthcare companies, including many cutting-edge fields such as brain-computer interfaces, cell therapy, surgical robots, in vitro diagnosis, AI-assisted diagnosis, and innovative drugs.

In the commercial aerospace sector, Lenovo Holdings has invested in more than 10 companies to build a complete industrial chain layout covering rocket manufacturing, satellite platforms, payload remote sensing, satellite communications to space computing power sensing. Leading companies such as Blue Arrow Aerospace and Galaxy Aerospace are all in its investment plan.

In the field of controlled nuclear fusion, Lenovo Holdings has invested in 6 companies, including many well-known companies in the industry, such as Nova Fusion, Star Ring Concentration, and Anton Fusion, to establish multi-chain layouts such as reverse field coverage, simulators, spherical tokamaks, laser inertial restraints, Z convolution, and hydrogen boron fusion.

In addition to investing in outstanding science and innovation enterprises in the field of cutting-edge technology, Lenovo Holdings is also focusing on earlier academic achievements that have not yet been commercialized, exploring how to promote industry-university-research co-promotion models, taking industry needs as the lead, and exploring joint questions and answers with the science and technology community from the beginning of R&D. During the reporting period, Lenovo Holdings and Peking University established a joint laboratory for advanced photonic integration technology, completed the publication of a joint paper with the research team, applied for a joint patent, and simultaneously promoted physical operation preparations; as one of the initiators, it took the lead in establishing the Industry-University-Research and Engineering Committee of the Chinese Society of Chinese Informatics to focus on the cutting-edge direction of artificial intelligence, implement the real needs of the industry, and create, replicate and promote more successful cases of industry-university-research collaboration in the field of Chinese information processing. Once this kind of exploration actually works, it also means that Lenovo Holdings can gain a better first-mover advantage in related fields.

Summary:

The implementation of the “15th Five-Year Plan”, under the national strategy of “speeding up self-reliance and self-improvement in high-level technology and leading the development of new quality productivity,” Lenovo Holdings' scientific and technological layout over the years has shown value this year. However, technological factors drive a company not only as a one-time performance highlight. Lenovo Holdings' focus on technological innovation and investment in earlier cutting-edge technology will determine how the company continues and continues to expand its value creation capabilities over a longer period of time.