In May 4th, the Hongkong Hang Seng Indexes Company Limited announced that Lenovo will be removed from the Hang Seng index component and replaced by the stone drug group, which will come into force in June 4th. As early as April this year, Bloomberg predicted that Lenovo might be excluded from the benchmark stock index in Hongkong. After being included in the Hang Seng Index in March 2013, the stock price of Lenovo has fallen by 56%, the worst of the 171 global technology stocks in Bloomberg statistics, Bloomberg reported. According to Bloomberg, the company that had been excluded from the Hang Seng Index in the past ten years had a median price decline of 48% before being eliminated. Growth is weak and reform is hard to promote. The past five years are indeed the five years of Lenovos lost. This is a summary of the past ten years by Wu Xiaobo, a financial writer. Legend Groups monthly K-line map More importantly, the voice of criticism believes that there is no hope of turning the turn on the fallen Lenovo Group, and even comments pointed out that Lenovo is the product of the last generation. PC, smartphones are in trouble at the same time This is not the first time Lenovo has been eliminated from the Hang Seng Index. Lenovo was listed in Hongkong in 1994, and Lenovo Group was first included in the Hang Seng Index in August 2, 2000. In September 11, 2006, Lenovo was excluded from the Hang Seng Index, but in March 2013, Lenovo joined the Hang Seng index again until it was rejected again yesterday (May 4th). Then, after the Lenovo Group was eliminated, could it play the same thing as last time? At present, the difficulty is not small. Chip technology has become a hot topic recently because of the ZTE event, and Lenovos Liu Ni dispute was mentioned again. The lack of core technology has always been a problem that Lenovo has been criticized for. Lenovo, computers and smart phones are core businesses. However, Lenovo is facing unprecedented difficulties in these two businesses. According to Lenovo Groups three quarterly report of 2017/18 fiscal year, personal computer and intelligent equipment business revenue accounted for about 72% of the groups total revenue. However, this business, which is related to Lenovos life and death, is facing strong challenges from its competitors. According to data from research institutions IDC and Gartner, HP beat Lenovo in 2017 to win the position of global PC market supremacy, which was the first time Lenovo lost its position since the first global PC market in 2013. According to IDC data, HP has surpassed Lenovo to become the worlds largest PC manufacturer in the first quarter of this year. However, Gartner also released a report which ranked Lenovo first. Compared with computers, the failure of Lenovos mobile phone is even more shocking. In 2014, Lenovo + Motorola shipped third of the worlds total, with a market share of 7.9%, ranking first among domestic manufacturers. However, by 2017, when HUAWEI, millet, OPPO, vivo and other domestic manufacturers increased their market share, Lenovos performance declined steadily. In the 2017 global smartphone sales ranking by research company Counterpoint, Lenovo cell phone sales were 49 million 700 thousand, down 2% from a year earlier, and the global ranking was eighth, with a market share of only about 2%. In the domestic market, it has been completely defeated. According to GFK data, Lenovo has only 1 million 790 thousand sales in the domestic market, and its market share is less than 1%. More fatal, whether PC or smart phones, the market peaked signal is becoming more and more obvious. According to the Lenovo Groups 2017/18 three quarterly report, the companys equity holders should make a loss of $289 million in the quarter, and the companys equity holders should make a loss of $222 million in the first three quarters. Lenovo holdings, which owns 29.1% of Lenovo Group, revealed that Lenovo Group, which is responsible for IT business, lost 670 million yuan last year. Legend Holdings 2017 Annual Report Can Lenovo Group be successful in transformation? Poor performance data over the past few years have led to huge public opinion pressure on Lenovo Group CEO Yang Yuanqing. In 2016, did the media publish Yang Yuanqings qualified Lenovo CEO? Yang Yuanqing questioned the charge of Lenovo and quickly aroused controversy in social media. The author compares Yang Yuanqings performance and salary since Yang Yuanqing, chairman of the board of directors of Lenovo Group, and draws a conclusion that Yang Yuanqings results are not paid. Lenovo and Yang Yuanqing made a refutation. In the same year, Lenovos research and development investment in the past ten years is not as good as HUAWEIs past year is widely circulated, criticizing Lenovos unwillingness to make progress. For this problem, in 2016, Lenovo Groups three quarterly call conference, Yang Yuanqing used the nonsense four words to fight back. In 2001, Liu Chuanzhi divided the old Lenovo into Lenovo Group and digital China, and Yang Yuanqing became president and CEO of Lenovo Group. After that, public opinion on Yang Yuanqings criticism continued to emerge. Yang Yuanqing (photo source: Yang Yuanqing personal micro-blog) In 2008, the financial crisis hit Lenovo Group for the first time. At that time, Liu Chuanzhi became chairman of the board of directors again, steering the course. In 2011, after the steady development of performance, Liu Chuanzhi gave Yang Yuanqing another round. However, in the 2015 fiscal year, Lenovo again suffered losses. Some voices thought Yang Yuanqing had smashed a good hand. Yang Yuanqing was in a hurry at that time. According to the Beijing morning post, Yang Yuanqing knocked down his subordinates in June 3, 2015 with executives of the mobile business department of Lenovo. I told you a few times last year, waking up, I even said you didnt wake up with a hammer, you were too slow to lose the chance. But now Yang Yuanqing seems optimistic about Lenovo. We have spent the toughest period of association, Yang Yuanqing said in April this year, the association groups global oath conference, and said Lenovo was again in the rise. Association Group oath Congress (photo source: Yang Yuanqing personal WeChat), according to Sina Technology reports, in response to the elimination of the Hang Seng Index, Lenovo said the company is entering a new stage of strong performance and sustainable growth. The results of the Hang Seng index will not have long-term substantive impact on the companys stock performance. Every little editor noted that Lenovo said it would shift from pure equipment, pure hardware, pure product - oriented companies to customer - oriented and a transition from equipment to equipment + cloud, and Yang Yuanqing also expressed ALLinAI many times. Lenovo Groups successful transformation, we will continue to focus on. Source: Daily Economic News Editor: Shao Xiaobo _NN2479 Legend Group oath Conference (photo source: Yang Yuanqing personal WeChat) In response to the rejection of the Hang Seng Index, Lenovo said the company is entering a new stage of strong performance and sustainable growth, according to Sina Technology. The results of the Hang Seng index will not have long-term substantive impact on the companys stock performance. Every little editor noted that Lenovo said it would shift from pure equipment, pure hardware, pure product - oriented companies to customer - oriented and a transition from equipment to equipment + cloud, and Yang Yuanqing also expressed ALLinAI many times. Lenovo Groups successful transformation, we will continue to focus on.