China's largest computer maker, Lenovo Group Ltd., on Tuesday announced a 16 percent jump in first-half profits, but the result came in below analyst expectations. Lenovo, formerly known as Legend, said revenue for the first six months beginning April slipped to 11.53 billion Hong Kong dollars (US$1.48 billion; ¤1.15 billion) from HK$11.59 billion a year ago. But its profit in the same period climbed from HK$539 million to HK$627 million (US$80 million; ¤62 million), largely due to one-off gains from selling its stock investments and a circuit board business, and growth in notebook computer sales. The result was lower than the average prediction of HK$645 million (US$83 million; ¤64 million) in a Dow Jones Newswires survey of six analysts. Traders punished the company in Tuesday trading on the Hong Kong bourse. Lenovo fell 11 percent to HK$2.78. Lenovo said in a statement that the number of notebook computers it shipped had "increased rapidly" in the first half due to the greater availability of wireless networks. Lenovo Chief Executive Yang Yuanqing said the company thrived in the face of foreign competition by adjusting its product lineup, with its market share hitting 27 percent in the second quarter of the year.
