(Yicai) Aug. 14 -- Lenovo Group, the world’s largest personal computer maker, revealed record fiscal first-quarter revenue as the Chinese company capitalized on surging demand for artificial intelligence-powered devices.

Revenue jumped 22 percent from a year earlier to USD18.8 billion in the three months ended June, the highest ever for the first quarter, the Beijing-based owner of brands ThinkPad and IdeaPad said in its earnings report today.

Net profit more than doubled to USD505 million. However, Lenovo pointed to a different profitability measure as more reflective of its core performance. Net profit based on non-Hong Kong Financial Reporting Standards, adjusted for non-cash fair value gains on warrants, climbed 22 percent to USD389 million.

The gains were partly driven by fair value changes related to Lenovo’s USD2 billion issuance of three-year convertible bonds in January to Alat, a subsidiary of Saudi Arabia’s Public Investment Fund, one of the world's biggest sovereign wealth funds.

Lenovo moved swiftly to integrate AI into its products. AI-enhanced PCs accounted for one-third of all PC sales during the quarter, surpassing the earlier projection of 25 percent, Chief Executive Yang Yuanqing said on a conference call today. More than 40 percent of weekly active users engaged with AI features, he added.

The adoption of AI tools boosted sales across Lenovo’s business units. Revenue at the Intelligent Devices Group, which includes PCs, tablets, and smartphones, jumped 18 percent to USD13.5 billion, the fastest pace in 15 quarters. Operating profit from the unit rose 15 percent to USD950.4 million.

Revenue from the Infrastructure Solutions Group, which includes data centers and AI servers, surged 36 percent to USD4.3 billion. But high investments in AI led to operating losses more than doubling to USD85.5 million.

The Solutions and Services Group, which provides information technology solutions and operational support, posted a 20 percent rise in revenue to USD2.3 billion, while operating profit grew 26 percent to USD500.8 million.

Yang said changes in US tariff policy have had a limited impact on Lenovo, citing the firm’s globally distributed manufacturing strategy. Lenovo operates over 30 production facilities in more than 10 countries to reduce exposure to trade risks.

The Americas remained Lenovo’s largest market, with revenue climbing 14 percent to USD6.3 billion. However, the Asian market grew faster. Domestic sales expanded by 36 percent to USD4.7 billion while revenue from Europe, the Middle East, and Africa rose 9 percent to USD4.2 billion. Meanwhile, Asia-Pacific, excluding China, saw a 39 percent jump to USD3.7 billion.

Lenovo’s Hong Kong-listed shares [HK: 0992] closed down 6 percent at HKD10.83 (USD1.40) today, after hitting a five-month high yesterday.

Editors: Dou Shicong, Emmi Laine