Good morning, good afternoon, and good evening. Welcome, everyone, to Lenovo's Earnings Media Webcast. This is Jenny Lai, Vice President of Investor Relations at Lenovo. By now, you should have received a copy of our earnings release and earnings presentation. Before we start, let me introduce our management joining the call today. Mr. Yuanqing Yang, Lenovo's Chairman and CEO; Mr. Gianfranco Lanci, Corporate President and COO; Mr. WaiMing Wong, Group CFO; Mr. Kirk Skaugen, President of Infrastructure Solutions Group; and Mr. Sergio Buniac, President of Latin America and Mobile Business Group, and President of Motorola. We will begin with earnings presentations, and shortly after that, we will open the call for questions. Now, let me turn it over to Yuanqing. Yuanqing, please. Hello, everyone. Thank you for joining us. A year ago, as we faced great uncertainty, I told you we would continue to be resilient and strive for new heights. Today, I'm pleased to say that we have indeed seen phenomenal growth in every part of our business and have achieved both a record Q4 and a new milestone for our fiscal year. Starting with our historical Q4 results. Global revenue reached $15.6 billion, growing 48% year-on-year, faster growth in almost a decade. Pre-tax income soared to $380 million. Net income reached $260 million, both around 5x to 6x as much as last year. All our core businesses achieved high double-digit growth in revenue at the same time for the first time in six years, demonstrating our progress in diversification of our businesses. For Intelligent Devices Group, PC and smart devices had its best Q4 ever with $12.4 billion, up 46% year-on-year. Even more, profitability hit an all-time high at 6.7%. All of our geographies realized high double-digit growth in revenue, particularly in China, we grew 18% year-on-year. Our PC volume outgrew the market to further strengthen our leading position. Tablet volume also had breakthrough growth of 157% year-on-year, around 3x as fast as the market. Our consistent strategy to focus on and invest in high growth and premier segments keeps delivering strong results as the Gaming PC, ThinkPad, Chromebook, and Visuals volume each grow at more than double-digit rates and outgrow the market. Our mobile growth continued its momentum of profitable growth with terrific results. Revenue achieved hypergrowth, up 86% year-on-year. Pre-tax income reached $21 million, record high since the Motorola acquisition. With expanded carrier relationships and a strong product portfolio, particularly 5G products, our volume grew at a triple-digit rate in North America, Europe, and Asia Pacific. Latin America remains a stronghold, with market share reaching a new record of nearly 21%. Our data center growth had a tremendous quarter. Revenue grew at a strong 32% year-on-year, the fifth straight quarter of premier market growth. Profitability improved 4.4 points year-on-year, the biggest increase in over two years. Both our cloud service provider segment and the ESMB segment achieved year-on-year growth. In particular, the CSP business grew 73% year-on-year. Our storage, software-defined infrastructure, and software business all had record Q4 revenue. Particularly, storage revenue achieved high growth of 73% year-on-year. Our service-led transformation accelerated, fueled by ongoing strong growth in software and services, with revenue up 44% year-on-year. Managed service revenue, including DaaS and TruScale, nearly doubled, and solution revenue grew 65% year-on-year. This historical quarter ensured that we reached a significant fiscal year milestone. For the first time, group revenue surged to over $60 billion, adding more than $10 billion in just one year. Profit grew even faster to reach new records, with a pre-tax income of almost $1.8 billion and a net income was almost $1.2 billion. Both were up more than 70% year-on-year. Our Intelligent Devices Group and the Data Center Group achieved revenue growth of 20% and 15% respectively, as both reached historical highs. Our software and service revenue grew twice as fast as the overall global revenue at almost 40% year-on-year to a record $4.9 billion, which now makes up 8% of overall company revenue. This demonstrates our solid progress in service-led transformation. These results come from excellent performance across all our businesses, delivering to the new needs in the new normal, leveraging our clear strategy, innovative product, operational excellence, and our global local model. While we completed a true historic and record year, we are not stopping here. Looking forward, we will further drive our service-led transformation to capture growth opportunities created by both the new normal and the new technologies. We see three important industry trends now and post-pandemic. The first trend is consumption upgrade as people spend more time on their devices, leading them to buy more devices and upgrade them more often as we work, learn, entertain from home. At the same time, the adoption of commercial 5G is driving the shift from computer to computing, making more traditional devices intelligent. The second trend is infrastructure upgrade. The ever-growing use of online applications has not only increased the demand but also raised the bar for ICT infrastructure. Infrastructure not only refers to traditional data center products like server, storage, networking, but also edge or cloud total solutions for computing power from design and deployment to operation and maintenance. The third trend is application upgrade from digitalization to intelligent transformation with AI at its core. Industry survey by a leading consulting company shows that digitalization and intelligent transformation of enterprises have accelerated by three to four years to enable more productive and efficient processes under remote working conditions. The massive amount of data from business digitalization and various smart devices are stored, organized, and analyzed with computing power from edge and the cloud. By combining the data and the computing power with algorithms based on industry know-how, we build intelligent solutions to transform industries. At our last earnings call in February, I shared that Lenovo was making changes to align our organizational structure to our 3S strategy. Under the new structure, Intelligent Devices Group or IDG, Infrastructure Solutions Group or ISG, and the Solutions and Services Group or SSG will each focus on the unique opportunities created by these three upgrade trends to achieve sustainable long-term growth. In the year ahead, IDG will continue to drive leadership in PC and tablet through innovation and operational excellence and further penetrate in new areas such as embedded computing, smart office, smart edge, and AR/VR. Mobile will continue profitable growth as we take advantage of increased market demand and the changing competitive landscape and maintain strong momentum in North America, Europe, and Asia Pacific, and keep our stronghold in Latin America. ISG will continue premium to market growth. We will further expand our cloud service provider customer base and grow our channel business through our newly integrated One Lenovo sales organization structure. We will drive storage, software-defined infrastructure, software and services to further improve profitability and ramp up TruScale Infrastructure as-a-Service. Our new business group, SSG, will strengthen our attached service portfolio and increase attach rates, expand managed services, and develop repeatable solutions in key vertical industries. Meanwhile, we have reduced the greenhouse gas emissions by 92% over the past decade and set new science-based targets to continue making progress in sustainability. In fact, we will be recognized by the annual Corporate Knights Index as one of the world's 100 most sustainable companies. The past year certainly presented many challenges that reminded us of the importance of adaptability and resilience. The past year also created opportunities for Lenovo to empower our customers and society to do more than just survive in a new normal, but to thrive and achieve even greater success. We will continue to turn challenges into opportunities and build an even smarter future in the year ahead. Thank you. Now, let me turn it over to our CFO, WaiMing. WaiMing, please. Thank you, Yuanqing. I will now take you through Lenovo financial and operational performance in Q4 and fiscal year 2021. We had a strong finish to a record fiscal year. For Q4, we delivered $15.6 billion in revenue with a 48% year-on-year growth, which is the fastest growth in almost a decade, with net profit increasing by more than 5x. Not only did all our three business groups achieve high double-digit sales growth for the first time since Moto and x86 acquisitions, the group high-margin software and services booking revenue also grew at its highest rate ever since our service-led transformation started. Our core competencies of operational excellence, time to market, and innovation are setting us apart in the post-COVID world and accelerating our transformation towards end-to-end solutions. Our E/R ratio was reduced by 1.9 percentage points year-on-year to 14.1% as a result of disciplined control and economies of scale. Profit attributable to equity holders was $260 million. The basic earnings per share came in at $0.0219. Q4 marked another exceptional quarter for our PCSD business, which sustained its position as the largest global PC brand by market share. All regions saw year-on-year revenue increases in a range of 29%-80%, leading to a blended 46% growth and record revenue of $12.4 billion for the group. PCSD delivered a record profit of $831 million in the Q4 with a 58% year-on-year growth. Its pre-tax margin expanded 50 basis points to an all-time high of 6.7%. In addition to the high-growth segments, which have been our strong catalyst in past quarters, e-commerce and services upselling emerged as a new growth engine to propel hyper revenue growth of 42%-58%, as well as higher profitability. Enterprise demand recovery was also encouraging, as evidenced by double-digit growth in shipments. Our MBG business delivered a hyper sales growth of 86% year-on-year, while improving its pre-tax profit by $80 million year-on-year to a record $21 million since acquisition. We achieved premium to market growth across our major geographies and outperforming the market. We have grown our MBG business by strengthening its product portfolio via a 5G for all strategy and broadening its carrier ranging across key focus markets. Data Center Group concluded the quarter with a 32% year-on-year growth to $1.6 billion in sales, thanks to the robust hyperscale demand and new customer acquisitions. Revenue of enterprise SMB business reached a three-year high despite continuous soft demand from enterprise. Their high margin boded well to the sales mix, along with more profitable cloud service provider projects. DCG pre-tax improved by $45 million year- on- year, the largest expansion in the last 10 quarters. It has been three years since we started our software and services-led transformation. The high-margin software and services business continued to see accelerated growth in invoice revenue to its highest ever rate of 44%, contributing 7.9% of group sales. Deferred revenue increased 32% year- on- year, which further secure our future growth by building a sticky business model. Managed services enjoy 91% growth in invoice revenue, supported by upselling opportunities leveraging the growing popularity of our as-a-Service solution. Our group generated an additional $10 billion revenue for the full year, capping off a record year with the highest rate in almost a decade. Our revenue grew 20% to $60.7 billion. Profit attributable to equity holders increased 77% to $1.2 billion, and basic earnings per share came in at $0.0954. PCSD, DCG, and Software and Services businesses each score all-time annual revenue or record profit. Challenges from the pandemic impacted MBG first half performance, but a swift recovery in second half led to its highest half-year profit since acquisition. Our E/R ratio was reduced by 110 basis points year- on- year to 12.5% on disciplined expense control. Pre-tax income was $1.8 billion, up 74% year- on- year, while pre-tax margin reached 2.9%, its highest level in the last 13 years. All of our business reported margin expansion. We have repositioned Lenovo to take advantage of the high demand for computing power, data, and end-to-end solutions. The consistent and strong earnings trajectory across our business units have underscored our company achievement after the intelligent transformation. Today, the board declared a final dividend of HKD 0.24 per share. Taking into consideration of the interim dividend of HKD 0.066 per share, total dividend will be HKD 0.306 per share, a 10% increase compared to dividend paid in FY 2019/2020. For the fiscal year, our operating cash flow improved by $1.4 billion to $3.7 billion, thanks to strong earnings and working capital management. To optimize our capital structure, we reduced our net debt and repurchased perpetual securities amounting to a total of $1.4 billion. In the fiscal year, we obtained our first investment-grade credit rating with a subsequent upgrade. All of these actions together save us 13% in financing cost and perpetual securities dividend. We expect more cost saving in the next fiscal year. PCSD business achieved many performance records as industry demand continued to exceed expectations throughout the year. Its revenue grew 22% to an all-time high of $48.5 billion, while pre-tax profit advanced 34% to $3.1 billion. Since the outbreak of the pandemic, there have been many unexpected lifestyle changes, including the one PC for person trend, rising usage intensity, and e-commerce revolution. The group has leveraged our operational excellence, product innovation, and quick time to market capability to address these new demand tailwinds. We maintained a solid worldwide number one position for the third consecutive year and became number 1 in EMEA in the second half of the year for the first time in our history. We made the strategic decision to drive high-growth segments and expect segment profitability. We also deploy our capital and resources under PCSD to grow the high-value added services business. As a result, the business further extended its industry-leading profitability to set a new milestone at 6.5%. In the earlier part of the fiscal year, MBG operation was negatively impacted on both supply and demand side by the pandemic. Nevertheless, our commitment to strategic action has helped us stage a swift recovery in second half of the year. Thanks to the strong momentum across key markets, the business delivered a 39% revenue growth in second half and a 9% for full year. Similarly, the pre-tax performance reversed from a loss in first half to a record pre-tax profit to $31 million in second half, up $87 million year- on- year. We achieved a record market share in Latin America and North America and nearly double our revenue base in Europe. Our strategy remains clear: driving product portfolio enhancement to include more premium models, a 5G for all strategy to make 5G connectivity more accessible, and broaden our carrier ranging to drive regional expansion. Looking forward, MBG will target to groom NA to be a significant contributor and embark its Europe business at a faster pace while maintaining Asia at its strong home market. Data Center Group deliver a record high annual revenue at $6.3 billion, up 15% year- on- year. CSP is the largest growth contributor with a strong double-digit increase. Positive catalyst for CSP included public cloud demand and customer and product expansion. We are winning projects not only utilizing our in-house design and manufacturing, but also high-end design storage and HPC to expand the number of growth engines. ESMB revenue were at its highest in last three years, outperforming the overall enterprise market, even though market demand was sluggish. Storage, SDI, software, and HPC performed well, posting strong double-digit growth and record revenue. Our DCG is now ranked global number 2 in entry- level storage, advanced from number 5 last year, and extended its number 1 lead in HPC segment. On pre-tax, DCG saw improved profitability for the fourth consecutive year by $57 million year-on-year, and narrow pre-tax loss to $169 million, driven by broad-based improvement across CSP and ESMB. Since this group started a service-led transformation, the software and services business had made tremendous progress. Its invoice revenue grew, accelerated, and reached 39% for the year to $4.9 billion, which is nearly twice as high as the group revenue growth rates, now contributing 8% of the group sales. The business has broadened its scope and scale and has won many landmark deals. Managed services enjoy a 78% growth, thanks to mega as-a-Service deals signed around the world with leading technology, retail, and financial institution, as well as global sports events. Complex solution posted a strong 58% growth from all verticals. Our tech services continue to grow at a fast pace of 28%. The software revenue increased 32% year-on-year to $2.2 billion, pointing to a fast-growing recurring revenue base as we make further inroads to build a sticky business model. With regional economy on pace to expand and signs of a rebound in enterprise IT spending, the group will continue to ride on recovery-led opportunities and deliver sustainable growth. With our new organizational structure, we plan to supercharge the growth opportunity arising from our service-led transformation efforts and capitalize on long-term upgrade cycles. With the investment-grade rating, we will further improve our debt capital structure by leveraging current low-interest environment. Our planned CDR listing will also further our market-leading position in China and provide capital for us to invest in technology, hence further support our long-term growth. By business group, our PCSD business will continue to address opportunities emerging from new smart devices and expand its leading position in both market share and profitability. It will leverage its innovation solution capabilities and further improve its world-class supply chain to meet strong segment demand, partly driven by commercial recovery. For mobile business, the group will focus on sustaining its strong momentum in North America and Europe while maintaining its leadership in Latin America. MBG will further push product innovation and accelerated 5G smartphone launches to score wins in more market and stay on the profitable growth journey. Our Infrastructure Solutions Group, or DCG business, will aim to grow the channel business with the One Lenovo platform while delivering premium to market growth and profitability. In the ESMB segment, the group will grow high-margin services attach rates, expand high-growth segments, and position its hybrid cloud solution to drive a paradigm shift in computing with edge-to-cloud solutions. For the CSP business, the group will continue to expand customer base and gain wallet share among existing accounts. To achieve that, the business will leverage its unique strength, including in-house custom design and worldwide manufacturing capability, and expand its product portfolio with advanced configuration and storage platform. The newly established SSG will bring our service-led transformation to a new level. We will continuously focus on expanding our capabilities in three key priority segments with clear multi-year growth targets. We will raise the attach rate for attached services, drive hyper growth in many services and as-a-service by enhancing delivery, differentiation, and platform, and develop end-to-end solutions and our Lenovo IP to support our growth in solutions. Thank you. Now we can take your questions. Thank you. Now we are open the line for questions. This session will be in English only. Please be reminded to limit yourself to two questions at a time. Please also state your name and company before asking questions. Operator, we will now turn it over to you. Please give us your instructions. Thank you. To ask questions on the phone, you may press *1 and wait for your name to be announced. To cancel your request, please press the # key. Once again, to ask question, please press *1 on your telephone. There will be a short silence while questions are being collected. Thank you for your patience. First question comes from the line of Leping Huang from Huatai Securities. Please go ahead. Okay. Thank you for taking my question. Congratulations for the very good results for Lenovo. I have two questions. One question is about the impact of the chip shortage. We see you record very good results last quarter. Looking forward, will there be any impact from shortage? This is number 1. The second one is that we see a reopening of the major countries. In the major countries, do you see any of the PC demands remain still strong, or do you see the market, especially do you see the consumer market has any change? Thank you. Can I invite Gianfranco to answer your question? Can you hear me? Thank you, Yuanqing. Yes. Hello? Yes. First of all, let me say, we are facing this shortage since Q4 last year, so it's not new. We have seen some deterioration, frankly speaking, in Q1 in terms of shortage, and now it's getting relatively stable. I would say moving forward, I don't expect a further deterioration, but for sure, we continue to face the shortage for the next 12-18 months. It's mainly coming not only from PC demand but also from other products, automotive and so on. We have been able, and you see the result, to manage the shortage quite well in Q4 and last year in Q1. We will continue to manage as we did in the past also in the future. There is another important thing that probably because when we talk about shortages, people they just think about IC, and they think that all the IC are the same or similar, right? Some of the shortages came from by the demand from car, the car industry. Usually, the IC that they utilize is based on very, very old fab technology, 28 or even higher, depends on the technology. While we use still chipsets that are coming, and IC, that are coming from a little bit more recent technology. The two things are not really overlapping too much. While it's very difficult to invest on very old technology, it's different from our side. In terms of impact, looking forward, we will be probably in a similar situation like Q1 or Q4, but not a deterioration. Talking about PC demand, I think it's a very good question because it is true that a lot of countries in the world are finally opening up, and it looks like we are slowly getting out of the tunnel. When I see the demand in terms of PC this quarter, even for the next following quarters, it's still very, very strong. I think the real difference, it's because people working from home, learning from home, playing from home, everything from home. I think the major difference is people, they start to realize, one, they need one PC per person and not one or two PC per house. Second, there are a few very interesting surveys in terms of what the people think about PC after pandemic, I say. Secondly, the experience on PC, a very different experience than what they experience on phone on certain applications. PC is becoming much more key for a lot of people, not only because everything from home, but also for gaming or entertainment or other things, because they realize they can do and they can get a much better experience than what they get on a phone or a tablet. The last thing is that when you look at installed base, we have a very old installed base, four, five, or six years, and it's a huge number. All these people, they are or they will be in the position to refresh their own PC. We will see an acceleration of the refresh of the entire installed base. Again, because if you want to get a good experience, if you want to enjoy a certain experience, you need to buy a new PC, not a four or five-year-old PC. I'm quite optimistic. We are quite optimistic that what we see in terms of growth, but also if you look at the market research data and so on, it will continue for several quarters. This year for sure, and next year also. Thank you, Gianfranco. Given this is a very important question, I just want to echo what Gianfranco just said. PC and the tablet demand are still very strong. Not only we see a big volume of the backlog in our order pool, you can see the number, particularly China number. China has already reopened for a couple of quarters, but their demand is still very strong, even stronger than other geography. That can prove what Gianfranco just said. This pandemic just pushed the people's behavior change. They try to own PC per person. Also, people are spending more time on their devices, and they are buying more devices and upgrading more often. Their work, learn, and play from home. We believe that the demand will continue to be strong for longer time, not just because of the pandemic. Also regarding of the shortage. I think this shortage is mainly driven by the stronger demand than expected for sure, not just in PC and the tablet, but also electronic car as well. It's caused by additional growth. That means the market will continue to grow, and Lenovo will also grow. It's just how much growth would depend on how much supply we can get. In that aspect, we are confident that Lenovo can perform better than the market and our key competitors. First, we have a very strong global supply chain, which was just awarded the Gartner's Top 25 Supply Chain. Lenovo has a very unique business model. Most of our competitors don't do manufacture by themselves. They just outsource to third party. Lenovo has a hybrid model. We do 50% outsourcing and 50% in-house manufacture. This unique business model gives us advantage to approach upstream vendors and build a better relationship with them. In shortage like this, we can leverage this relationship to get better supply situation. I'm confident that we will continue to outperform the market and the key competitors enjoy sustainable growth. Thank you. Next question. Next questions will come from the line of Jerry Su of Credit Suisse. Please ask your question. Thank you. Thanks for taking my question, and congratulations on the good result. My first question is still regarding PC. I think education or corporate demand has been quite strong for the past couple of quarters. Can you give us some idea what do you think about the education penetration rate, also the growth outlook into the later half of the year? I think there are some concerns that this could slow down due to some area reaching some higher penetration. I would love to get your thoughts on that. Secondly, the data in the slide on DCG, I think in last quarter, it seems like that the losses is at about $30 million, which please correct me if I'm wrong, that this probably means that it's already at the break-even level excluding the depreciation and also the amortization. How should we think about the future profitability of DCG? Thank you. Okay. Gianfranco, could you continue to answer the first question regarding of the education market and corporate? Education and corporate, right? I think we need to make a distinction between corporate and education. In the sense that when we look at education, we are seeing due to the pandemic, a huge demand on education, mainly Chromebook, not only Chromebook. We continue to see a strong demand on education. Last quarter, this quarter, and also going forward. Mainly coming from Chromebook, and if you look at the. Hello? Hello? Yeah. Now it's fine. We just put in this way. It's good. As I said, we continue to see strong demand from education, but also moving forward, not only in last quarter or Q4. There are some seasonal effects because education is a kind of a seasonal business. As I said, also if you look, it's mainly Chromebook, but not only Chromebook. When you look at the projection in terms of Chromebook growth, we are still talking about a big double-digit number. In the sense it's starting with three or four. For this year, and I think also for the following year. Corporate, I think, is a very different picture. In the sense that we have seen a slowdown during pandemic with, of course, corporate reducing investment and trying to control cost. Starting from Q4, we have seen a rebound. Last quarter was already quite strong. We expect that as soon as people come back to work in the office, not from home, this demand will accelerate. What we see in corporate, it's a big transition. I'm talking about corporate, not government. Big transition from desktop to notebook, simply because people want to be ready or equipped for any issue that can happen in the future. We see a replacement of the desktop install base with notebook. The other important thing when you look at Europe, but also U.S. or some other countries, that there are huge programs on digitalization. In Europe, it's one of the four or five key elements of the fund from the European community for the different countries. They need to invest. One clear guideline is they need to invest on digitalization. That means that, again, you need to upgrade, or to update, or to look at the new install base in terms of not only PC, in terms of PC for sure, but also in terms of infrastructure, server, storage, the entire infrastructure. This, when you look at the number in terms of amount of dollars, it's really huge. Corporate, in my opinion, we will see a speed up of the growth during the next three, four, five quarters without any doubt. Thank you. Okay. Thank you. Thank you, Gianfranco. Kirk, would you like to answer the second question, please? Yes, thank you for the question. Our strategy within the Infrastructure Solutions Group is to deliver hyper-growth and continued profitability improvements both year-on-year and quarter-on-quarter. I think the nice thing about the data center business is the design wins to get good long-term visibility into the key profit drivers that will continue to improve DCG's profitability, ISG's profitability in the future. That is that we're improving not just in server, but in storage. Our in-house design and manufacturing is getting us design wins at the motherboard level, and we're expanding our services business and the attach of our premium services at a double-digit increase to our servers and storage versus last year. Lastly, we see the enterprise and small business market and the on-prem as a service to our TruScale now growing significantly with our as a service business growing triple digits year- on- year. All these things are sticky and long-term profitability trends that we see. In-house manufacturing and design with motherboards, expanding our storage, ESMB growth 73%, which is a huge premium to market, and our commitment remains to continue this profitability growth each and every quarter. Thank you. Thank you. Next question. Thank you. Next question comes from the line of Albert Hung of JP Morgan. Please go ahead. Hi, Yuanqing. Thank you for taking my question. Congrats on the strong result. My first question is could you share more color on the channel inventory level, and what's our pricing strategy for PC under tight supply demand? My second question is, the mobile profit was quite amazing. What will be the future profitability trend if the supply demand become more balanced? Thank you. Okay. Gianfranco, could you please answer the first question regarding the channel inventory and the pricing? Sergio Buniac, could please answer the second question. Thank you for the question. It's a very good question because I think the channel inventory has probably never been so low in the history. We are running today in certain countries with two or three weeks of channel inventory, which is really too low. In the past, we were used to run with something between six to eight. Now we have 50% of what we need. Frankly speaking, we will be in this situation at least for the next two or three quarters. Because when I look at our backorder, as Yuanqing said, we are not able to reduce our backorder quarter- by- quarter. It's still there with the same amount, more or less with the same amount of unit. Channel inventory is worrying, but because it's too low. This is, I would say, everywhere, really everywhere, from Europe to China. China is even probably one of the worst places in terms of channel inventory, in terms of this build-up. Europe, U.S., and Latin America, it's really everywhere. We need to deal with this situation. Pricing with this strong demand on one side, some components, but mainly when I look at components, it's really very cheap components. When you talk about IC, you are talking about cents. Pricing are going up. In order to maintain the profitability we need that, and also to make sure that we continue to watch pricing. We want to be competitive, of course, but pricing are slowly going up. I think we continue to go up for the next three or four quarters because the component cost trend. On the other side, it's not affecting demand because demand is so strong. We start already the exercise in last quarter, even in Q4 partially, but we didn't see any impact on the demand at all. Thank you, Gianfranco. Sergio, would you like to answer MBG's topic? From the mobile side, I think number 1, despite the high growth, the demand was even stronger. We are seeing demand grow in many different regions across the globe and even in different channels, including enterprise, where we are just starting. I believe in the future we will sustain the profitability, don't see any deterioration. We expect to still grow premium to market for the full year and the next few quarters. We expect demand to hold. Now, as much as there is more competition from some players, as you mentioned, there are other things that are benefiting demand. Our expectation is to continue to grow premium to market, and we are seeing demand stocking channel at very healthy low levels and demand across multiple regions, especially North America, Latin America, and Europe, but also markets like India growing in a good pace. We continue to focus on our strategies. That is, focus on our core strength and grow profitably like we have been doing now for the last two to three years. Thank you, Sergio. We definitely have a higher expectation in our mobile business to drive the profitable growth. Actually, we think we have the better position than other competitors in some markets, particularly mature markets in North America. We will leverage some competitors' exits to further grow our share. Definitely a similar situation will happen in Europe and some Asia Pacific markets as well. We will keep the strong growth, profitable growth in those markets. Actually for the mobile business we could grow even stronger, but we are limited by the supply as well. We will try our best to get more supply to support our profitable growth. Thank you. Thank you, Yuanqing. We are now ready to take the last question due to limited time. Please raise your last question. Operator, please. Thank you. Your last question comes from Christian of UBS. Please go ahead. Thank you. Thank you very much for taking my questions. I have two questions. Number 1 is just a follow-up on the component shortage topic. I'm wondering whether you are able to quantify the size of component shortage, and when do you expect the component shortage will ease? Second question about servers. I understand that your servers have been growing quite well. I'm wondering whether you're also seeing some component shortage in servers, and also what do you believe is your key competitive edge to win cloud server orders from the OEMs? Thank you. Gianfranco, would you have to repeat your answer again? It's also a very interesting question. A very good question because to quantify is always not easy. I would say if I look at our back orders, and we can probably say that in terms of quantifying the shortage, we can probably say that it's in the range of 20%. Without shortage, we could probably ship easily 20% more. Still, brilliant result in Q1 without shortage could be much better. Let's put it in this way. It's not easy to quantify because unfortunately, we are not talking about one component or two components. We are talking about a big number of different small components. In some cases, if you are flexible and good enough, and this is why also it's important to run your own factory, you can easily switch and you can be flexible enough to enjoy maybe some other components that are available rather than what is not available. You need to be very flexible. You need to do qualification very quickly, and you need to do a lot of things. If you run, let's say, your own destiny, it's much more easy than depending from an ODM supplier. As I said, I would not expect that in the next 12 to 18 months, the situation will improve. It will not deteriorate. Probably it will stay at the same level, but I would not expect that for the next 12 to 18 months. We will see the same situation also next year. To build that capacity, when you talk about fab, silicon foundry, it takes some time. There are big investments going on in different areas of the world in terms of new fab, but they will not be ready before 12 to 18 months. Thank you. Thank you, Gianfranco. Kirk, would you like to add something on PC or IDG? Sure. Two questions. First is servers being impacted by component issues? Second is, how do we differentiate in the cloud service provider market versus the ODMs? I think certainly there's no one in technology that's not affected in some way by the chip shortages. However, I think we've done an outstanding job multi-sourcing across our portfolio. We just had, for example, record AMD shipments in our server technology with all of the latest Milan announcements we just made with AMD. We announced 18 new platforms this quarter in ThinkSystem and ThinkAgile, and we're multi-sourced across just about everything. We don't see that being a major impact to having a significant double-digit premium to market and growth as we move forward here. As our supply chain is a little bit more nimble, we are bringing in inventory for the cloud service providers based on future orders. I think we're excited that we're not just winning the server business, but we're also winning significant storage orders, eight-way orders, high-performance computing in the cloud orders. It's improving our profitability. We're able to pre-stage that and build that equipment because we're not just doing the system integration or just the rack integration, we're also doing the motherboard design. We get to get a start on that much earlier. Candidly, we don't need to worry about ODMs because we're now designing our own motherboards in-house, manufacturing them in our own motherboard factories, and integrating them in our own system factories around the world. In fact, we've recently talked about significant new motherboard factories in Mexico, expanding in China, as well as expanding in Europe and in Hungary to increase our capacity based on the demand we see. I don't think the chip shortage changes that. Our strategy for the public cloud is what we call ODM Plus. We have $40 billion a year procurement power. We have much larger procurement power, especially in a shortage than most ODMs. Unlike the multinational traditional OEMs, we can build our own motherboards. We're not outsourcing those to someone. That improves our profitability and our agility, and we're in 180 markets. If we take China cloud providers global, or we take U.S.-based cloud manufacturers global, in either sense, we have the ability to get to every corner of the globe, from India to Brazil to South Africa to anywhere in the world. This is our supply chain, which was just ranked 16 by Gartner of all companies in the world, and number 5 in tech, is proving to be a significant advantage for us, both in procurement and in supply chain. I think 73% growth, this is just the beginning because we know the design wins in cloud are coming, and we know that those design wins are going to have a better mix with improved profitability. Intelligent transformation. You know we have made our strategy very clear. We will drive the three strategies: Smart Verticals, Smart IoT, and smart devices, Smart Infrastructure, and Smart Verticals. Definitely our solution and the service business will be key to realize this transformation. We will drive a high attach rate of the attach service. We will drive hyper growth for the managed service, including Device as a Service and TruScale for data center as a service business. Meanwhile, we will drive multiple Smart Verticals in manufacturing, education, retail, et cetera. Lenovo has very strong execution capability. Once we have the clear strategy, we will drive the results. Actually, a couple of years ago, you were worried whether we could turn around our mobile business and data center business. We couldn't give you an answer immediately. Over the past couple of quarters' performance, you could see clear progress in these two businesses. That can demonstrate Lenovo's execution capability, and also it could demonstrate our further established success of diversification of our businesses. For the next step, driving the intelligent transformation will be our strategy. I hope with Lenovo's proven record, you can believe we can deliver. Thank you. Thank you, Yuanqing. We thank you very much for joining today's call. If any of the investors or analysts has any further questions, please feel free to contact me or the IR team directly. The replay of this webcast will be available in the next couple of hours on our investor relations website. Thank you again for joining us. Bye bye now. Bye. Ladies and gentlemen, that concludes the conference for today. You may now disconnect.