Liu Chuanzhi said Lenovo was very happy marriage 3 risk

After nearly a year of in Lenovo's $1 billion 750 million acquisition of IBM PC business, so large-scale international success is the focus of public attention. Yesterday, Lenovo Group founder, CEO of Liu Chuanzhi in "said China vibrant city Young Entrepreneurs Forum in Wenzhou, Lenovo performances are in steady growth, acquisition of IBM-PC business" the most difficult period is over, "the" marriage "is" very happy". Liu Chuanzhi revealed that in September this year, Lenovo has sold 7 million 600 thousand laptop computer, accounting for 7.6% of the global market, an increase of 10.7% over last year; the group achieved a turnover of HK $48 billion 100 million, after tax profit of HK $1 billion 20 million, an increase of 13%. At the same time, Lenovo's performance in the capital market is also very good, the share price of HK $2.6 per share rose to HK $3.8 before the merger, the overall upward trend.

As a typical case of international mergers and acquisitions of Chinese enterprises, Liu Chuanzhi tells the story of the merger and acquisition process. So far, Lenovo mergers and acquisitions IBM-PC business without any operational errors." Liu Chuanzhi said that after the merger of the three major risks (loss of staff, loss of customers and cultural conflicts) did not appear, it seems that Lenovo has done very well".

He said that before the implementation of access to IBM-PC, Department of key employees keep employees the same treatment measures, the IBM-PC Department of key employees "a person did not go"; in 5 years to take the same brand, IBM sales personnel unchanged, the group is headquartered in New York, Lenovo and IBM 2400 people visit customers etc. the current IBM-PC service measures, "the market is not affected, no loss of customers"; because Lenovo and IBM management level in the "one line", plus "IBM know what we all know, some do not understand something, perhaps we can also know what is going on, so originally the most worry about" cultural differences "has been a very good solution.

Prior to IBM-PC business losses, why join the association will be profitable? Liu Chuanzhi believes that the IBM-PC product is a good piece of business, gross profit was as high as 24% or so, far higher than the Lenovo gross profit of 14% to 15%. His analysis, before IBM PC losses for two main reasons: one is the IBM department cost allocation is quite large, involving the "profit rate is relatively low in the PC sector, before the merger IBM $about 90000000000 annual turnover by several Division, the PC turnover in 10 billion dollars; two is IBM do business" high input and high output, the cost of spending "never stingy", resulting in a loss of profits is not high PC department. According to reports, IBM-PC business mergers and acquisitions are outsourcing, a machine to complete the production needs $24, while the association is probably as long as $4.5.

Lenovo's acquisition of IBM's global PC business, not only in both sides of the complementary product line is very strong, but there is a strong contract effect in the supply chain, can greatly reduce the cost of cooperation between the two sides. Liu Chuanzhi said that after nearly a year of mergers and acquisitions after the operation, Lenovo found IBM-PC business operating costs can be reduced much higher than previously expected.