China's Lenovo targets 20 to 30 pct annual profit growth

China's Lenovo, seeking to be the world's number one personal computer maker, said on Wednesday it aims to keep increasing its net profit by 20 to 30 percent annually over the next few years.

Lenovo, which is close behind global first-place personal computer maker Hewlett-Packard, reported earlier in the day that its quarterly net profit soared by 34 percent to $205 million from a year earlier.

The company will seek to increase net profit by 20 percent to 30 percent in the next few years, Chief Financial Officer Wong Wai Ming said in New Delhi where the company held a top-level meeting.

"We are committed to growing our bottom line by 20 to 30 percent on an annual compound basis over the next few years," said the chief financial officer.

Speaking to reporters, Wong said that Lenovo was "actively pursuing opportunities around the world" to expand its business.

"We have been talking to a lot of companies," the Lenovo executive said, adding the company was looking at the possibility of both "business cooperation" deals and "straight acquisitions".

Lenovo said it was strenuously pushing growth in the smartphone sector in other developing markets after making strong gains in China where it is the second-biggest smartphone vendor.

The company is diversifying as it seeks to compensate for slowing growth in the personal computer sector.

The Chinese computer giant's quarterly revenues climbed 12 percent from a year earlier to $9.4 billion in the financial quarter to December.

It has launched smartphones in such countries as Indonesia, Vietnam and also in India but most of its revenues derive from its personal computer business.

In the smartphone sector Lenovo faces competition not only from Samsung but also from leading Chinese players like Huawei.

Lenovo has said it aims to wrest Hewlett-Packard's crown as top computer maker and has made strides with its "protect and attack" strategy when it comes to market share.

Analysts have described Lenovo as a success story in the personal computer business due to its tactic of fielding a diverse line-up of products.

Lenovo said it planned to use the same strategy as it expands in the smartphone sector in markets outside China.

"We will not just go into the premium end overseas but offer a broad range as we do in China," said Lenovo senior vice president Milko van Duijl.