Sell Lenovo (992 HK): Drowning In Debt. Don't Wait for the Rescue

Poor Performance on Mobile and Data Center Dragging Lenovo's Q3 Earnings; FVE Remains

Lenovo Group: They Came, They Saw, They Exited

Analyst

Alasdair Moody

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

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Forensic Accounting

Lenovo's 2H numbers confirm the placement to the parent is a bailout and it remains our poster child for creative accounting in Asia. Although revenues are up overall, Lenovo is making losses wherever sales have grown and revenues and profits are now falling in China. Moreover, data centres, the diversification of the future are also seeing revenues fall. Lenovo was only able to announce a profit thanks to a tax credit and positive operating cashflow thanks to paying the staff with equity. Strip…

Lenovo's 2H numbers confirm the placement to the parent is a bailout and it remains our poster child for creative accounting in Asia.  Although revenues are up overall, Lenovo is making losses wherever sales have grown and revenues and profits are now falling in China. Moreover, data centres, the diversification of the future are also seeing revenues fall.  Lenovo was only able to announce a profit thanks to a tax credit and positive operating cashflow thanks to paying the staff with equity. Strip…

Lenovo HY2018 Results: The Water Is Still Rising