Exhibit 4

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Lenovo Group Limited 2022/23 Annual Report

HKD COUNTER STOCK CODE 992

RMB COUNTER STOCK CODE 80992

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4

8

12

16

60

118

126

142

179

184

185

186

188

190

192

287

288

Financial highlights

Chairman & CEO statement

Lenovo management team

Management’s discussion & analysis

Corporate governance report

Audit committee report

Compensation committee report

Directors’ report

Independent auditor’s report

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated cash flow statement

Consolidated statement of changes in equity

Notes to the financial statements

Five-year financial summary

Corporate information

About Lenovo

Lenovo is a US$62 billion revenue global technology powerhouse, ranked #171 

in the Fortune Global 500, employing 77,000 people around the world, and serving 

millions of customers every day in 180 markets. Focused on a bold vision 

to deliver smarter technology for all, Lenovo has built on its success as 

the world’s largest PC company by further expanding into growth areas 

that fuel the advancement of ‘New IT’ technologies (client, edge, cloud, 

network, and intelligence) including server, storage, mobile, software, 

solutions, and services. This transformation together with Lenovo’s worldchanging innovation is building a more inclusive, trustworthy, and smarter 

future for everyone, everywhere. To find out more visit https://www.lenovo.

com, and read about the latest news via our StoryHub.

Table of content

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Chairman

& CEO statement

Our hard work over the past three years has elevated 

Lenovo to a new height not only in revenue, profitability and 

cash position, but also in our strategic direction.

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As we close the fiscal year, it’s time to reflect upon the 

numerous challenges that Lenovo and the entire ICT 

companies have been managing, and the solid execution 

results and strategic breakthroughs we have delivered 

despite the tough market and all the uncertainties in the 

macro context.

Broadly speaking, global businesses were operating 

in a high inflation, high interest rate environment with 

exchange rate fluctuation and geopolitical tensions. 

For our industry, the past fiscal year also marked a 

turning point from a fast expansion period to a postpandemic, post hypergrowth era. It was a test not only 

for a company’s operational resilience to navigate a 

challenging time, but also for its strategic foresights to 

emerge out of this period stronger than ever, ready to 

win for the future.

Delivering Solid Results with Diversified Engines and 

Operational Excellence

I’d like to report that Lenovo delivered the most solid 

results we could reasonably hope for amid the ICT 

industry contraction phase in the past fiscal year.

Despite the broad market decline, we maintained 

a strong net margin comparable with the previous 

year and remain committed to doubling it in the 

medium term. This is a remarkable achievement. Our 

operational excellence keeps purchasing cost low with 

our global scale, ensures high productivity through 

inhouse manufacturing, turns inventory into cash fast 

through strong channel partnerships, and keeps a high 

efficiency of the entire company through strong expense 

management.

Our diversified engines in solutions, services and 

infrastructure demonstrated strong momentum and 

achieved hypergrowth in the past fiscal year. They not 

only helped offset the PC market decline, but also told a 

stellar growth story in themselves. Solutions and Services 

Group (SSG) continued to deliver double-digit growth 

with over 20% operating margin. Infrastructure Solutions 

Group (ISG) grew over 30% year on year at significant 

premium to market. As a result, we have dramatically 

increased the percentage of non-PC business in our 

revenue mix, which marks an important milestone in our 

transformation from a device or hardware company to a 

solution and service company.

And in PC market, the consumer demand for smart 

devices has been accelerating over the last three 

years, leading to channel overstock and then inventory 

correction. As a result, the PC shipments of the entire 

industry, including Lenovo, declined year on year, 

especially during the second half of the fiscal year. But 

Lenovo still outperformed the PC market in shipment 

and maintained our leadership position and industry 

leading profitability.

We believe the PC shipment has nearly bottomed by 

now, based on the activation number which reflects 

the real demand, as well as the channel inventory level, 

which has almost returned to the pre-pandemic level. 

From this point, the PC market is about to resume its 

year-on-year growth, as early as the second half of 2023. 

And Lenovo is ready to capture that growth from a 

position of strengths.

Lenovo Group Limited 2022/23 Annual Report 9

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Chairman & CEO statement

Enhancing Competitiveness to Capture Future 

Opportunities

As we enter the post-pandemic, post hypergrowth 

phase of our industry cycle, I believe our hard work over 

the past three years has elevated Lenovo to a new height 

not only in revenue, profitability and cash position, but 

also in our strategic direction. Going forward, we will 

continue to focus on the following areas.

First, we will accelerate our journey from a device or 

hardware company to a solution and service company. 

It all starts with providing total solutions to customers to 

solve industry specific pain points. And in this process, 

we will leverage our TruScale brand to boost Lenovo’s 

presence in the highly promising aaS market. Meanwhile, 

we will build more horizontal solutions including 

digital workplace, edge/AI, hybrid cloud, TruScale and 

sustainability solutions and embed them into vertical 

industries. Ultimately, these efforts will help steadily 

increase the percentage of solutions and services in our 

overall revenue mix.

Second, we will keep driving our investment in New 

IT. Lenovo has been the first one in the industry to 

define our vision of New IT, the technology architecture 

that includes client devices, edge computing, cloud 

computing, network and artificial intelligence. It 

differentiates from traditional IT which features 

on-prem data center and applications. Going forward, 

we are committed to doubling our R&D investment 

around New IT in medium term. Today, one in every five 

of Lenovo employees works in R&D or innovation, and 

we continue to bring innovative technology, products 

and solutions to the market, including rollable PC, 

Yoga Book 9i, ThinkPhone, ThinkReality VRX, extreme 

performance ThinkStation, new generation ThinkSystem, 

ThinkAgile, ThinkEdge, as well as smart space solutions 

such as ThinkSmart One, all launched last year, and many 

more in our pipeline.

Third, we will continue to leverage and optimize our 

unique “Global Sourcing, Local Delivery” model. Globally, 

we have access to advantageous resources, attract 

talent and build partnerships. And locally, we stay agile 

and flexible to serve customers’ needs. In supply chain, 

our global scale helps us secure key components. In 

manufacturing, we have our own factories to ensure 

capacity and uninterrupted supplies. In marketing, we 

use a “Global Might Local Fight” approach to build 

Lenovo’s global brand equity while generating local 

influence and demand in key markets. This is a strong 

core competency that Lenovo has built over years and 

will continue to make a big difference in the future.

10 Lenovo Group Limited 2022/23 Annual Report 

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And finally, we will maximize the advantages of One 

Lenovo. Today, customers need not just products but 

total solutions. Lenovo has all the pieces, including 

devices, infrastructure, solutions and services to serve 

their needs. And we will continue to leverage our 

existing platform and processes, build on our existing 

core competencies to grow adjacent business. The 

capabilities we’ve built with our core business are now 

the best soil that nurtures our new, diversified growth 

businesses. As One Lenovo, we are sharing the same 

vision, executing the same strategy, operating on the 

same platform, and building the same culture, in every 

business, every region, and every team.

Building a Smarter Future for All

Our solid results and clear strategic directions have 

prepared us well to navigate the current market 

headwinds, a challenging economy and numerous 

macro uncertainties. I firmly believe in the long-term 

opportunities driven by global digital and intelligent 

transformation. It is our strategic foresights and 

operational resilience that will help us transcend the 

industry cycle more smoothly than competition.

Beyond business success, our ultimate goal is to use 

technology to help solve humanity’s greatest challenges. 

We have made important progress including having 

our net-zero target by 2050 validated by Science 

Based Target initiative (SBTi). It’s our commitment that 

everything we do must serve the purpose of making life 

better, work more productive, society more equitable 

and inclusive, and our planet more sustainable.

To that end, let’s make the new fiscal year a new chapter 

in our journey of building a smarter future for all.

Yuanqing Yang

Chairman & CEO

Lenovo

Lenovo Group Limited 2022/23 Annual Report 11

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Lenovo 

management 

teamYang Yuanqing Chairman and Chief Executive Ocer

Gao LanSenior Vice President, Human Resources

Kirk Skaugen

Executive Vice President

and President of the 

Infrastructure Solutions Group

Yong Rui

Senior Vice President 

and Chief Technology Ocer

George HeSenior Vice President and President of Lenovo Capital and Incubator GroupLiu Jun Executive Vice President and President of the China Geography

12 Lenovo Group Limited 2022/23 Annual Report 

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Laura G. Quatela

Senior Vice President andChief Legal and Corporate Responsibility OcerLuca RossiExecutive Vice President and President of the Intelligent Devices Group

Matthew Zielinski

Executive Vice President and 

President of the International 

Sales Organization

Che Min (Jammi) Tu

Senior Vice President and 

Group Operations Ocer

Wong Wai Ming

Executive Vice President 

and Chief Financial Ocer

Ken Wong

Executive Vice President

and President of the 

Solutions & Services Group

Qiao Jian Senior Vice President 

and Chief Strategy Ocer and Chief Marketing Ocer

Lenovo Group Limited 2022/23 Annual Report 13

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Management’s

discussion & analysis

Business review and outlook

Highlights

During the fiscal year ended March 31, 2023, Lenovo’s 

(the Group) structural growth engines, including its 

Infrastructure Solutions Group (ISG), and Solutions and 

Services Group (SSG), set multiple performance records, 

thanks to its resilient and well-executed transformation 

strategy. The ISG segment delivered significant profit 

improvement, building on high-end applications, including 

Artificial Intelligence, and portfolio expansion in highmargin products. SSG spearheaded the Group’s Serviceled Transformation by expanding its value-added solutions 

for its broad client base. The growth engines’ combined 

revenue and operating profit increased by 31 percent 

and 24 percent, respectively. Intelligent Devices Group 

(IDG) remained a strong sector leader, not only in market 

share, but also in profitability despite a 21 percent setback 

in revenue due to sector-wide pressures ranging from 

excessive channel inventory and conservative customer 

spending to exchange rate fluctuations.

On one hand, non-PC businesses grew 7 percent and 

made up nearly 40 percent of the combined revenue of 

the three business groups, 7 percentage points higher 

year-on-year. On the other hand, persistent macro 

headwinds weighted on PC operations and led to a 14 

percent decline, to US$61.9 billion, in Group revenue, 

within which, currency conversion alone resulted in a 

negative impact of 5 percent. Profit attributable to equity 

holders declined by 21 percent, to US$1.6 billion, or down 

10 percent excluding a one-time restructuring and other 

charges. The decline of non-HKFRS (non-Hong Kong 

Financial Reporting Standards) net income was smaller at 

13 percent.

Management’s decisive actions throughout the year 

further streamlined its operating expense structure, 

maintaining a high level of agility and resilience, and 

better transcending the cycle. The Group made onetime restructuring and other charges of US$249 million, 

among various other actions, to deliver annual run-rate 

group expense savings of about US$850 million. In spite 

of macro headwinds, additional investments were made 

to upgrade and differentiate the Group’s technology and 

services, which are vital to ensuring long-term success 

of its growth engines, business transformation, and 

ESG initiatives; R&D (Research & Development) spend 

increased 6 percent year-on-year.

With prudent working capital management, the Group 

improved its cash conversion cycle by 12 days to negative 

2 days year-on-year. Inventory reduced steadily, with 

year-end balance shrinking over US$1.9 billion. The Group 

was recognized for its ESG performance with numerous 

accolades, including a Gold award for Sustainable 

Companies and Organizations at the Best Corporate 

Governance and ESG Awards. MSCI upgraded the 

company’s ESG rating to AAA while EcoVadis recognized 

the Group’s excellence in sustainable procurement with 

an Outstanding Program Leadership Award. The Group 

was the first in the PC and smartphone sectors to have its 

2050 net-zero greenhouse gas emissions target validated 

by the Science Based Targets initiative. The Group made 

significant effort to facilitate gender equality and was 

listed in Bloomberg’s Gender-Equality Index. Lenovo was 

also featured as a leader in climate change and water 

security by CDP.

16 Lenovo Group Limited 2022/23 Annual Report 

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Lenovo Group Limited 2022/23 Annual Report 35

working with a global network of focal points (FP) in 

the geographies, development organizations, and key 

functional areas, as well as with external partners. We use 

reliable and established processes that conform with the 

latest applicable laws and regulations and ensure overall 

effectiveness. The diagram above details the process for 

ensuring environmental compliance for our products and 

practices.

Lenovo and its business partners obtain the environmental 

and regulatory certifications that are required to legally sell 

its products where they are marketed and sold. Lenovo 

relies on internal and external subject matter experts, 

third-party labs, internal tools and processes to evaluate 

and confirm product compliance before shipment. Areas 

of review include but are not limited to, electromagnetic 

compatibility (EMC), environmental, safety, technology 

and trade controls, and wireless.

Ethics and compliance with 

relevant laws and regulations

Lenovo is committed to conducting business legally, 

ethically, and with integrity. Lenovo’s Code of Conduct (“Code”) 

mandates compliance with applicable laws in markets 

where it conducts business. Its policies strongly support 

ethical and responsible business practices, which include 

areas such as anti-bribery and corruption, data privacy, 

and intellectual property. Our Ethics and Compliance 

Office (ECO) oversees the ethics and compliance function 

across the organization and strives to promote a culture 

that is committed to implementing these values. The 

ECO works in partnership with business units across the 

globe to promote legal and ethical operations. The ECO 

is committed to raising awareness about the importance 

of ethical and compliant business practices to Lenovo 

and serves a critical role in providing employees with the 

information, resources, and training they need to make 

informed ethical decisions. The ECO oversees Lenovo’s 

Code, which establishes clear expectations for employee 

compliance with Lenovo’s policies related to lawful 

and ethical business conduct. Lenovo’s Code reflects 

our culture of trust and integrity and holds employees 

accountable for their behavior and helps employees 

determine when and where to seek advice. Lenovo’s Code, 

policies, and related awareness and training materials 

are provided on the intranet and through periodic 

communications.

The ECO is supported by the following committees:

Board Committees

• The Audit committee is annually briefed by the ECO 

on matters including the adequacy of resources for 

ESG reporting

• The Nomination and governance committee

oversees the corporate policies and practices about 

governance and compliance with legal and regulatory 

requirements

Other Committees

• The Executive Ethics Committee provides executivelevel oversight and guidance to the ECO

• The Investigation Oversight Committee works 

closely with the ECO to oversee the Company’s 

internal investigation process

• The Regional Ethics and Compliance Committee

provides the ECO with global support, perspective 

and insight

Business practices

Lenovo’s Code mandates compliance with applicable 

laws in markets where we conduct business. Our policies 

strongly support ethical and responsible business 

practices, including but not limited to:

Anti-bribery and corruption

Lenovo has zero tolerance for bribery and corruption. 

Lenovo complies with the anti-bribery and corruption laws 

of the countries in which we conduct business. Lenovo’s 

Global Anti-Bribery and Corruption Policy and along with 

our Global Gift, Entertainment, Corporate Hospitality and 

Travel Policy reinforce provisions in the Code and provide 

additional guidance regarding compliance with global antibribery and corruption laws and regulations. The policies 

stress that Lenovo will not directly or indirectly solicit, offer, 

promise, authorize, provide, or accept anything of value 

to any person, including government officials, to influence 

action, inaction or to secure an improper advantage as 

defined by applicable laws.

Anti-competitive practices and fair competition

Lenovo competes for business ethically and lawfully. 

Lenovo’s Code and policy on anti-competitive practices 

and fair competition forbid employees from engaging 

in anti-competitive practices, such as entering into an 

agreement or discussion that would result in setting prices, 

limiting the availability of goods or services on the market, 

or agreeing to boycott a customer or supplier.

Intellectual property

Lenovo values intellectual property as it innovates for the 

future. Lenovo expects employees to protect intellectual 

property and to respect the intellectual property rights 

of other companies and individuals. Lenovo secures 

its intellectual property by using patents, copyrights, 

trademarks, confidential information, related contract 

rights, and other applicable forms of legal protection.

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Lenovo Group Limited 2022/23 Annual Report 61

The Board also appointed Mr. William O. Grabe as the lead 

independent director (the “Lead Independent Director”) 

with broad authorities and responsibilities. Among other 

responsibilities, the Lead Independent Director serves as 

chairman of the nomination and governance committee 

(the “Nomination and Governance Committee”) meeting 

and/or Board meeting whenever the committee and/or 

Board is considering (i) the combined roles of Chairman 

and CEO; and (ii) assessment of the performance of 

Chairman and/or CEO. The Lead Independent Director 

also calls and chairs meeting(s) with all independent nonexecutive directors without management and executive 

director present at least once a year on such matters as 

are deemed appropriate. Accordingly, the Board believes 

that the current Board structure with combined roles of 

Chairman and CEO, the appointment of Lead Independent 

Director and a vast majority of independent non-executive 

directors provide an effective check and balance of 

powers and authorizations between the Board and the 

management of the Company.

In relation to the recommended best practices in the 

CG Code, the Company published quarterly financial 

results and business reviews in addition to interim and 

annual results. Quarterly financial results enhanced the 

shareholders’ ability to assess the performance, financial 

position and prospects of the Company. The quarterly 

financial results were also prepared using the accounting 

standards consistent with the policies applied to the 

interim and annual financial statements.

Corporate governance 

principles and structure

The board of directors (the “Board”) and the management 

of Lenovo Group Limited (the “Company”, together with 

its subsidiaries, “Lenovo” or the “Group”) strive to attain 

and uphold a high standard of corporate governance 

and to maintain sound and well-established corporate 

governance practices for the interest sake of shareholders 

and other stakeholders including, but not limited to, 

customers, suppliers, employees and the general public. 

The Company abides strictly by the governing laws and 

regulations of the jurisdictions where it operates and 

observes the applicable guidelines and rules issued by 

regulatory authorities. It regularly undertakes review of its 

corporate governance system to ensure it is in line with 

international and local best practices.

Compliance with corporate governance code

Throughout the financial year ended March 31, 2023 

(“FY2022/23”), the Company has complied with the code 

provisions of the Corporate Governance Code (the “CG 

Code”) set out in Appendix 14 to the Rules Governing the 

Listing of Securities on The Stock Exchange of Hong Kong 

Limited (the “Stock Exchange”) (the “Listing Rules”), and 

where appropriate, met the recommended best practices 

in the CG Code, with the exception that the roles of the 

chairman of the Board (the “Chairman”) and the chief 

executive officer of the Company (the “CEO”) have not 

been segregated as required by code provision C.2.1 of the 

CG Code.

The Board has reviewed the organization human 

resources planning of the Group and is of the opinion that 

the vesting of the roles of Chairman and CEO in Mr. Yang 

Yuanqing (“Mr. Yang”) is appropriate and beneficial to the 

Group as it provides consistency of the strategy execution 

and stability of the operations of the Group. The Board 

comprising a vast majority of independent non-executive 

directors meets regularly on a quarterly basis to review 

the operations of the Group led by Mr. Yang.

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80 Lenovo Group Limited 2022/23 Annual Report 

Corporate governance report

Industry congress

Lenovo operates in an industry which is rapidly changing in terms of market trends, consumer preferences and 

technologies. In order to keep directors updated with the latest technologies and products development in the 

industry, the Company invited directors to attend 2023 Consumer Electronic Show (the “CES”) in Las Vegas and 

2023 Mobile World Congress (the “MWC”) in Barcelona. These two events provided the best product reviews, 

product demonstrations and displays that showcase the technologies of the Company and also those of other 

players in the market.

Experts briefings and seminars

The Company has arranged in-house experts briefings and seminars for directors to keep them abreast of 

the affairs relating to the Company. The directors are also encouraged to attend relevant external professional 

programs at the Company’s expense to keep abreast of issues facing the changing business environment within 

which the Group operates.

During FY2022/23, the Company arranged external and in-house experts briefings and seminars for directors 

on topics such as share price strategy, impacts of COVID-19, public relations/government relations in China, geoeconomics/politics and regulatory updates.

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Directors’ report

162 Lenovo Group Limited 2022/23 Annual Report 

Substantial shareholders’ and other persons’ interests (continued)

Save as disclosed above, as at March 31, 2023, no other persons (other than the directors and chief executive of the 

Company, whose interests are set out in the above section headed “Directors’ interests”) had any interests or short 

positions in the shares and/or underlying shares of the Company as recorded in the register required to be kept by the 

Company under section 336 of the SFO.

Retirement scheme arrangements

The Company contributes toward retirement income protection for its employees through the provision of defined 

benefit pension plans, defined contribution plans, and/or contributions to various public retirement schemes in certain 

jurisdictions. These benefits form an important part of the Company’s total compensation and benefits program that is 

designed to attract and retain highly skilled and talented employees.

Defined benefit pensions plans

Chinese Mainland — Retirement Schemes

The Group participates in respective local municipal government retirement schemes in the mainland of China (“Chinese 

Mainland”) whereby it is required to make an annual contribution of no more than 20% of three times the monthly 

average salaries as set out by the local municipal government each year. The local municipal governments undertake to 

assume the retirement benefit obligations of all retirees of the qualified employees in the Chinese Mainland. In July 2006, 

the Group has established a supplemental retirement program for its employees in Chinese Mainland. This is a defined 

contribution plan, with voluntary employee participation.

In addition to the above, the Group has defined benefit and/or defined contribution plans that cover substantially 

all regular employees, and supplemental retirement plans that cover certain executives. Information on the principal 

pension plans sponsored by the Group is summarized in this section.

United States of America (“US”) — Lenovo Pension Plan

The Company provides US regular, full-time and part-time employees who were employed by IBM prior to being hired 

by the Company and who were members of the IBM Personal Pension Plan (“PPP”) with non-contributory defined 

benefit pension benefits via the Lenovo Pension Plan. As of December 31, 2015, the plan was frozen.

The Lenovo Pension Plan consists of a tax-qualified plan and a non-tax-qualified (non-qualified) plan. The qualified plan 

is funded by Company contributions to an irrevocable trust fund, which is held for the sole benefit of participants and 

beneficiaries. The non-qualified plan, which provides benefits in excess of US Internal Revenue Service limitations for taxqualified plans, is unfunded.

Pension benefits are calculated using a five-year average final pay formula that determines benefits based on a 

participant’s salary and years of service, including prior service with IBM. The benefit is reduced by the amount of the 

IBM PPP benefit accrued to May 1, 2005, which will be paid by IBM’s trust.

For the year ended March 31, 2023, an amount of US$1,386,797 was charged to the consolidated income statement with 

respect to the qualified and non-qualified plans.

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Lenovo Group Limited 2022/23 Annual Report 163

Retirement scheme arrangements (continued)

Defined benefit pensions plans (continued)

United States of America (“US”) — Lenovo Pension Plan (continued)

The principal results of the most recent actuarial valuation of the plan at March 31, 2023 were the following:

• The actuarial valuation was prepared by Fidelity. The actuaries involved are fully qualified under the requirements of 

US law.

• The actuarial method used was the Projected Unit Credit Cost method and the principal actuarial assumptions 

were:

— Discount rate: 4.80%

— Expected return on plan assets: 3.60%

— Future salary increases: N/A

• The qualified plan was 65% funded at the actuarial valuation date.

• There was a net liability of US$25,918,047 under the qualified plan for this reason at the actuarial valuation date.

Japan — Pension Plan

The Company operates a hybrid plan that consists of a defined contribution up to the annual tax-deductible limit plus a 

cash balance plan with contributions of 7% of pay. The plan is funded by Company contributions to a qualified pension 

fund, which is held for the sole benefit of participants and beneficiaries.

For the year ended March 31, 2023, an amount of JPY1,034,323,606 was charged to the consolidated income statement 

with respect to this plan.

The principal results of the most recent actuarial valuation of the plan at March 31, 2023 were the following:

• The actuarial valuation was prepared by JP Actuary Consulting Co., Ltd.. The actuaries involved are fully qualified 

under the requirements of Japanese law.

• The actuarial method used was the Projected Unit Credit Cost method and the principal actuarial assumptions 

were:

— Discount rate: 1.70%–1.90%

— Expected return on plan assets: 1.40%

— Future salary increases: Age-group based

• The plan was 80% funded at the actuarial valuation date.

• There was a net liability of JPY5,984,488,752 under this plan at the actuarial valuation date.

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Directors’ report

164 Lenovo Group Limited 2022/23 Annual Report 

Retirement scheme arrangements (continued)

Defined benefit pensions plans (continued)

Germany — pension plan

The Company operates a hybrid plan that provides a defined contribution for some participants and a final pay defined 

benefit for other participants, depending on which former IBM plan they were in. The Company also operates a defined 

benefit plan for Motorola Mobility employees.

Employees hired by IBM before January 1, 1992 have a defined benefit based on a final pay formula. Employees hired 

from 1992 to 1999 have a combination of a defined benefit based on a final pay formula and a defined contribution 

plan with employee required contributions of 7% of pay above the social security ceiling and a 100% company match. 

Employees hired in or after 2000 have a combination of a cash balance plan with an employer contribution of 2.95% of 

pay below the social security ceiling, and a voluntary defined contribution plan where employees can contribute specific 

amounts through salary sacrifice. Employees of Motorola Mobility have a defined benefit based on a final pay formula.

The plan is partially funded by Company and employee contributions to an insured support fund with DBV-Winterthur 

up to the maximum tax-deductible limits. In line with standard practice in Germany, the remainder is unfunded (book 

reserve).

For the year ended March 31, 2023, an amount of EUR3,386,729 was charged to the consolidated income statement 

with respect to this plan.

The principal results of the most recent actuarial valuation of the plan at March 31, 2023 were the following:

• The actuarial valuation was prepared by Kern, Mauch & Kollegen (Motorola Mobility valuation prepared by Willis 

Towers Watson). The actuaries involved are fully qualified under German law.

• The actuarial method used was the Projected Unit Credit Cost method and the principal actuarial assumptions 

were:

— Discount rate: 3.70%

— Future salary increases: Age-group based

— Future pension increases: 2.25%–2.50%

• The plans were 39% funded at the actuarial valuation date.

• There was a net liability of EUR94,282,368 under this plan at the actuarial valuation date.

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Lenovo Group Limited 2022/23 Annual Report 165

Retirement scheme arrangements (continued)

Defined contribution plans

United States of America (“US”) — Lenovo Savings Plan

U.S. regular, full-time and part-time employees of Lenovo (United States) Inc., including employees of Motorola Mobility 

LLC, are eligible to participate in the Lenovo Savings Plan, which is a tax-qualified defined contribution plan under 

section 401(k) of the Internal Revenue Code. The Motorola Mobility 401(k) Plan merged into the Lenovo Savings Plan 

effective December 31, 2015. The Company matches 100% of the employee’s contribution up to the first 6% of the 

employee’s eligible compensation. Employee contributions are voluntary. All contributions, including the Company 

match, are made in cash, in accordance with the participants’ investment elections. The Company match is immediately 

vested.

US Lenovo Executive Deferred Compensation Plan

The Company also maintains an unfunded, non-qualified, defined contribution plan, the Lenovo Executive Deferred 

Compensation Plan, which allows eligible executives to defer compensation, and to receive Company matching 

contributions, with respect to amounts in excess of Internal Revenue Service limits for tax-qualified plans. Compensation 

deferred under the plan, as well as Company matching contributions are recorded as liabilities.

Deferred compensation amounts may be directed by participants into an account that replicates the return that would 

be received had the amounts been invested in similar Lenovo Savings Plan investment options. Company matching 

contributions, are directed to participant accounts and fluctuate based on changes in the stock prices of the underlying 

investment portfolio.

United Kingdom (“UK”) — Lenovo Stakeholders Plan

UK regular, full-time, part-time and fixed term Lenovo contract employees are eligible to participate in the Lenovo 

Stakeholders Plan, which is a tax-qualified defined contribution “stakeholder” plan. The Company contributes 8.7% of an 

employee’s eligible salary to the employee’s pension account each year and the employer contributions are dependent 

on employee contributing no less than 3% of their salary to the same fund.

Canada — Defined Contribution Pension Plan

Canadian regular, full-time and part-time employees are eligible to participate in the Defined Contribution Pension 

Plan, which is a tax-qualified defined contribution plan. The Company contributes 4% of the employee’s eligible 

compensation, in addition the Company matches 50% of the employee’s contribution up to the first 4% of the 

employee’s eligible compensation. All contributions are made in cash, in accordance with the participants’ investment 

elections. Employee contributions are voluntary.

Hong Kong S.A.R. of China — Mandatory Provident Fund

The Group operates a Mandatory Provident Fund Scheme for all qualified employees employed in Hong Kong S.A.R. 

of China. They are required to contribute 5% of their compensation (subject to the ceiling under the requirements set 

out in the Mandatory Provident Fund legislation). The employer’s contribution will increase from 5% to 7.5% and 10% 

respectively after completion of five and ten years of service by the relevant employees.

Case 2:23-cv-00449-JRG Document 23-5 Filed 06/07/24 Page 17 of 21 PageID #: 735
Notes to the financial statements

192 Lenovo Group Limited 2022/23 Annual Report 

1 General information and basis of preparation

Lenovo Group Limited (the “Company”) and its subsidiaries (together, the “Group”) develop, manufacture and 

market reliable, high-quality, secure and easy-to-use technology products and services. Its product lines include 

legendary Think-branded commercial personal computers and Idea-branded consumer personal computers, as well 

as servers, workstations, and a family of mobile internet devices, including tablets and smartphones.

The Company is a limited liability company incorporated in Hong Kong S.A.R. of China. The address of its registered 

office is 23rd Floor, Lincoln House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong S.A.R. of China. The 

Company has its primary listing on The Stock Exchange of Hong Kong Limited.

The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting 

Standards (“HKFRS”). The consolidated financial statements have been prepared under the historical cost 

convention except that plan assets under defined benefit pension plans and certain financial assets and financial 

liabilities are stated at fair values, as explained in the significant accounting policies set out in Note 2.

The preparation of the consolidated financial statements in conformity with HKFRS requires the use of certain 

critical accounting estimates. It also requires management to exercise its judgment in the process of applying 

the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where 

assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4.

Changes in accounting policies and disclosures

The below amended standards, improvements and accounting guideline became applicable for the current 

reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a 

result of adopting these amended standards, improvements and accounting guideline.

— Amendments to HKAS 37, Onerous contracts – Cost of fulfilling a contract

— Annual improvements to HKFRS Standards 2018-2020 cycle

— Amendments to HKAS 16, Property, plant and equipment: Proceeds before intended use

— Amendments to HKFRS 3, Reference to the conceptual framework

— Accounting Guideline 5 (Revised), Merger accounting for common control combinations

Case 2:23-cv-00449-JRG Document 23-5 Filed 06/07/24 Page 18 of 21 PageID #: 736
Notes to the financial statements

276 Lenovo Group Limited 2022/23 Annual Report 

34 Retirement benefit obligations (continued)

(c) Additional information on post-employment benefits (pension and medical) (continued)

The amounts recognized in the consolidated income statement are as follows:

Pension Medical

2023

US$’000

2022

US$’000

2023

US$’000

2022

US$’000

Current service cost 13,668 16,897 299 454

Past service cost 40 – – –

Interest cost 12,236 7,829 852 854

Interest income (6,873) (4,140) – (19)

Curtailment gain (162) (1,025) – –

Total expense recognized

in the consolidated 

income statement 18,909 19,561 1,151 1,289

35 Principal subsidiaries

The following includes the principal subsidiaries directly or indirectly held by the Company and, in the opinion of the 

directors, are significant to the results of the year or form a substantial portion of the net assets of the Group. The 

directors consider that giving details of other subsidiaries would result in particulars of excessive length.

Company name

Place of 

incorporation/

establishment

Issued and fully

paid up capital/

registered capital

Percentage of issued

share capital held

2023 2022 Principal activities

Held directly:

聯想(北京)有限公司

(Lenovo (Beijing) Limited)1

(wholly foreign-owned enterprise)

Chinese Mainland HK$5,650,000,000 100% 100% Manufacturing and 

distribution of IT products 

and provision of IT 

services

聯想(上海)有限公司

(Lenovo (Shanghai) Co., Ltd.)1

(wholly foreign-owned enterprise)

Chinese Mainland HK$1,511,000,000 100% 100% Distribution of IT products

and provision of IT 

services

Case 2:23-cv-00449-JRG Document 23-5 Filed 06/07/24 Page 19 of 21 PageID #: 737
Lenovo Group Limited 2022/23 Annual Report 279

Company name

Place of 

incorporation/

establishment

Issued and fully

paid up capital/

registered capital

Percentage of issued

share capital held

2023 2022 Principal activities

Lenovo Global Technology

(United States) Inc.

United States US$10 100% 100% Provision of IT services and

distribution of IT products

Lenovo (Hong Kong) Limited Hong Kong S.A.R. 

 of China

HK$74,256,023 100% 100% Distribution of IT products

惠陽聯想電子工業有限公司

(Lenovo (Huiyang) Electronic

Industrial Co., Ltd.)1

(wholly foreign-owned enterprise)

Chinese Mainland HK$31,955,500 100% 100% Manufacturing and 

distribution of IT products

Lenovo (India) Private Limited India INR8,607,471,514 100% 100% Manufacturing and 

distribution of IT products

聯想信息產品(深圳)有限公司

(Lenovo Information Products

(Shenzhen) Co. Ltd.)1

(limited liability company

(wholly-owned entity))

Chinese Mainland RMB643,966,800 100% 100% Manufacturing and 

distribution of IT products

Lenovo (Israel) Ltd. Israel ILS132,853.12 100% 100% Distribution of IT products

Lenovo (Italy) S.r.l Italy EUR100,000 100% 100% Distribution of IT products

Lenovo Japan LLC Japan JPY100,000,000 95.10%

(v)

95.10%

(v)

Distribution of IT products

Lenovo Korea LLC Korea KRW3,580,940,000 100% 100% Wholesale and retail trade 

of computer, peripheral 

equipment and software

Lenovo Mexico, S. de R.L. de C.V. Mexico MXN3,426,638,114 100% 100% Distribution of IT products

35 Principal subsidiaries (continued)

Case 2:23-cv-00449-JRG Document 23-5 Filed 06/07/24 Page 20 of 21 PageID #: 738
Lenovo Group Limited 2022/23 Annual Report 281

Company name

Place of 

incorporation/

establishment

Issued and fully

paid up capital/

registered capital

Percentage of issued

share capital held

2023 2022 Principal activities

Lenovo (South Africa) (Pty) Ltd South Africa ZAR177,500 100% 100% Distribution and marketing 

of IT products

Lenovo (Spain), S.L.U. Spain EUR37,475,456.40 100% 100% Distribution of IT products

Lenovo (Sweden) AB Sweden SEK200,000 100% 100% Distribution of IT products

聯想系統集成(深圳)有限公司

(Lenovo Systems Technology 

Company Limited)1

 

(limited liability company 

(wholly-owned entity))

Chinese Mainland RMB263,407,660 100% 100% Manufacturing and 

distribution of IT products

Lenovo Technology 

(United Kingdom) Limited

United Kingdom GBP8,629,511 100% 100% Distribution of IT products

Lenovo Technology B.V. Netherlands EUR20,000 100% 100% Distribution of IT products

Lenovo Technology Sdn. Bhd. Malaysia MYR1,000,000 100% 100% Retail sale of computers, 

computer equipment and 

supplies

Lenovo Tecnologia (Brasil) Ltda Brazil BRL6,911,200,307 100% 100% Manufacturing and 

distribution of IT products

Lenovo (Thailand) Limited Thailand THB252,000,000 100% 100% Distribution of IT products 

as well as mobile phone, 

smartphone and tablet, 

server and storage

Lenovo (United States) Inc. United States US$1 100% 100% Distribution of IT products

Lenovo (Venezuela), SA Venezuela VEB0 100% 100% Distribution of IT products

35 Principal subsidiaries (continued)

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