Good morning, good afternoon, and good evening. Welcome, everyone, to Lenovo's earnings 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. Yang Yuanqing, Lenovo's Chairman and CEO. Mr. Gianfranco Lanci, Corporate President and COO. Mr. Wong Wai Ming, Group CFO. Mr. Kirk Skaugen, President of Infrastructure Solutions Group. Mr. Ken Wong, President of Solutions and Services Group. Mr. Sergio Buniac, President of Latin America and Mobile Business Group, and President of Motorola. We will begin with earnings presentation, and shortly after that, we'll open the call for questions. Now, let me turn it over to Yuanqing. Yuanqing, please. Hello, everyone, and thank you for joining us. We are pleased to report a record fiscal first quarter results in our new organizational structure. While Wai Ming will go into detail about our performance, I want to focus on the greater opportunities we see and how we will deliver growth and sustainable profitability increases well into the future. The new normal has changed how people live and work. It has accelerated digital and intelligent transformation, and upgrades in smart devices, ICT infrastructure, and applications. With our clear 3S strategy and strong execution, Lenovo is confident to capture these significant opportunities to further grow and improve profitability. In fact, last quarter, despite the challenging environment, Lenovo delivered a record quarter with a significant year-on-year profitability improvement. Group net income more than doubled. Net income margin reached the highest in many years. Group revenue continued a hyper-growth of almost 27% year-on-year. I want to say, this is just the beginning. In the coming years, we will continue to focus on high-margin businesses, including solutions and services, particularly as-a-service business, infrastructure upgrade, premier PC, and adjacent non-PC devices. We will further increase investment in innovation and consistently improve our growth margin and overall profitability. I want to go into the details of each business group. Let's start with our new Solutions and Services Group, or SSG. Today, the ICT infrastructure is transforming to a new architecture of client, edge, cloud, network intelligence. This new IT will accelerate digital and intelligent transformation, bring each individual and enterprise higher efficiency and productivity, but also more complexity. This means customers now need more sophisticated IT services. This shift created huge market opportunities for solution services, as well as managed services, including the subscription-based, all-inclusive business model, which we call as-a-service. This is not only a reshaping of IT services, but also a massive transformation of the entire industry. IDC estimates the new IT service market to be over $1 trillion through 2025. While there is potential to grow in traditional support services, even larger growth opportunities lie within managed services, as-a-service, and the vertical solutions. The margins of each service businesses are much higher than devices alone. SSG's high growth will definitely drive higher profitability for the group. SSG addresses these opportunities with three service segments, we already see strong initial results. Last quarter SSG revenue achieved a significant growth year-on-year, with a strong operating margin of 22%, which is much higher than our traditional hardware businesses. Support services profitability was up by almost three points year-on-year. Managed service, other service, and vertical solutions all achieved double- and triple-digit growth year-on-year. We won many more high-profile smart city and smart retail deals, and implemented hybrid cloud solutions with our own IP. Going forward, we will drive further growth and margin enhancement. Our support services business will improve penetration rates and leverage the increasing device install base, especially as commercial rebounds to grow. For other service, we will aggressively invest in capability, platform, and tools, and drive scale through building more repeatable vertical solutions with our own IP, and through strategic partnership. Let's talk about our Infrastructure Solutions Group, or ISG. ICT infrastructure is the foundation to digital and intelligent transformation. IDC predicts the ICT infrastructure to be a near $250 billion market through 2025. We have been investing in ISG for years. Having started with only our global server business from IBM x86 acquisition, ISG has built storage, software service, software-defined infrastructure capabilities, and become a full-stack data center infrastructure provider. We have also expanded from providing enterprise IT infrastructure to public cloud, and full hybrid cloud solutions to our customers. Years of investments are paying off. This business is close to achieving profitable growth and generating returns. Last quarter, ISG delivered a record revenue, and has outperformed the market for six straight quarters, while achieving the best results in five years. We are now number three in x86 server, and number two in mainstream storage worldwide. Our higher-margin businesses, storage, software, continue strong growth year-on-year. Particularly hybrid cloud solutions grow high double digits year-on-year. Looking forward, we will continue to invest in ISG's competitiveness and move toward profitability. We will increase investments in edge computing, hybrid cloud solutions, and 5G cloud network convergence. We will also continue to strengthen our in-house design and manufacturing capabilities, improve efficiency, and expand the strategic partnership to enable more solutions. Our vision is to become the largest ICT infrastructure solution provider. For Intelligent Devices Group, or IDG, I want to re-emphasize that the pandemic has changed how people live and work, and PCs has returned to the center of our digital life. People now spend much more time on his PC. PC refreshment cycle has shortened, and the penetration rate has increased. IDC confirmed that the total PC demand will at least remain at the current levels until 2025, while commercial demand is rebounding quickly. At the same time, the IoT market is expected to surge by 11% CAGR through 2025. IDG is fully leveraging our PC leadership position and synergy across businesses to expand in adjacent non-PC segments, such as smart meeting collaboration and embedded computing. We have also been investing in innovation and the premier segments, like workstation, gaming PC, and thin and light to drive sustainable profitability increases. Last quarter, IDG continued the significant top-line growth of almost 30% year-on-year. The profit grew even stronger at over 40%. In one aspect, this is driven by strong performance in PCs, thanks to years of investment in premier and high-growth PC segments. We continue to improve our both average selling price and profitability. In another aspect, this result is driven by strong performance of non-PC segments, which already accounts for 18% of IDG's total revenue. Both tablet and smartphone businesses achieved over 50% growth year-on-year with record performance. We strengthened the number two position in Android tablet worldwide. Smartphone had a record operating margin of almost 5%, and now has become a self-sustainable, healthy business. We are confident to leverage the change in market landscape to continue hyper-growth. Going forward, IDG will continue to invest in smart devices, co-component technologies, and the next generation computing platform. We will continue to focus on premier segments to improve average selling price and profitability. We will leverage our broader customer base to cross-sell adjacent non-PC products and further increase non-PC business mix. Last quarter, we increased our R&D by 40% year-on-year. We will continue to invest in innovation and aim to double our R&D expense in three years. We will further strengthen operational excellence and improve efficiency through more decisive and thorough digital and intelligent transformation internally. We remain committed to ESG and sustainable green development. All these efforts will not only help us deliver long-term profitable growth, but also bring to life our vision of smarter technology for all. Lastly, I invite you to attend our annual flagship event, Tech World, next month, where we will discuss more about our vision and our future. Thank you. Now, Wai Ming will talk about our first quarter in more detail. Wai Ming, please. Thank you, Yuanqing. I will now take you through Lenovo's financial and operational performance in Q1 fiscal year 2022. We achieved our best first quarter in history. We outperformed the market and attained record Q1 revenue of $16.9 billion, posting growth of 27% year-on-year. Our net income margin reached a 13-year high of 2.8%, and net profit more than doubled year-on-year. All our three business groups set new milestones in revenue and performances. IDG, our Intelligent Devices Group, realized its all-time high operating margin of 7.5% and profit growth of 43% year-on-year. While PC business is contributing to the growth, non-PC products also registered a growth of 57% in revenue year-on-year. Our new profit driver, the Solutions and Services Group, SSG, saw its operating profit grow 51% year-on-year, contributing to 20% of our group's profits. Its 22% operating margin was nearly three times of business group average. Our Infrastructure Solutions Group, ISG, achieved its record revenue since the x86 acquisition and made its largest profit improvement since 2Q fiscal year 2018/2019 by $49 million year-on-year. While maintaining our E-to-R ratio year-to-year, our research and development investment grew 40% year-on-year. We believe our commitment to R&D would drive innovation and differentiation that will continue to support higher profitability. We plan to double our R&D spending in three years. Furthermore, considering the improved profit mix structure, we are confident that we can continue to expand our net income margin. Profit attributable to equity holders was $466 million, and the basic earnings per share came in at $0.0402, representing 123% growth year-to-year. Our operating cash improved by $131 million to $448 million, driven by strong profitability. In this fiscal quarter, the ongoing component supply shortage remained a key challenge, and our order backing further extended to fiscal Q2 across PC, smartphone, and server. To support our growth, we continue to execute our component buyer program to meet strong demand. To optimize our capital structure, we further reduced our net debt by $541 million to $739 million and lower our finance costs correspondingly. In addition, Fitch upgraded our credit rating to BB B in March 2021. Recently, S&P and Moody's revised our outlook from stable to positive, reflecting our sustainable growth outlook. Targeting the fast-growing new IT services segments within the trillion-dollar IT services market, SSG deliver a successful first quarter with strong revenue growth and high profitability. This financial result, SSG, have demonstrated the group's strategic focus for the past two years on service-led transformation and started to bear fruits. SSG revenue increased by 38% year-on-year to $1.2 billion, with strong double-digit revenue growth across three segments and all regions. Operating profits surged by 51% year-on-year to $264 million, driven by strong top-line momentum and solid expansion in operating margin, which stand at 22%, topping all business groups. SSG will continue to contribute to Lenovo long-term profitability through its higher profitability and fastest revenue growth among all our business groups. Revenue of support service grew 24% year-on-year. We continue to drive its penetration rate by strengthening premium service attach and new solutions such as asset recovery services. The remarkable growth of managed service reached 64% year-on-year, demonstrating our ability to serve customers' demand as they switch to as-a- service model. Total contract value of as-a- service more than doubled during the quarter. The growth momentum continues as we secure several landmark deals and strategic partnerships. Project and solutions also reported strong revenue growth of 56% year-on-year, paving the way for scalable growth. These achievement as a whole contributed to a 41% year-on-year growth in booking, while deferred revenues amounted to $2.4 billion, up 34% year-on-year. ISG continue its faster-than-market growth momentum for six consecutive quarters. Sales grew 40% year-on-year to $1.8 billion. Profitability improved of $49 million was the strongest in the past two years, driven by more profitable cloud service provider projects and favorable mix within this enterprise and SMB. ISG will continue to increase its profitability. CSP sales reached an all-time high, and it continued to expand client base, adding 12 new CSP NextWave clients with more project wins. Its global design-in projects now extended from one socket to eight sockets, servers to storage, liquid cooling, more advanced system designs, and multiple platforms from single platform. ESMB delivered the highest 1Q revenue in the last five years, supported by record sales in high margins, storage, high-performance computing, and hybrid cloud solutions. In the mainstream storage market, the group was one of the fastest-growing vendors and maintained its position as the second-largest global player. Q1 marked another record quarter for our IDG with a 43% improvement in operating profits and a 28% revenue expansion. There were multiple drivers contributing to IDG's performance, including strong commercial demand and encouraged share gain in premium segments, resulting in higher ASP and profit margin. The use of PC has returned to the center of people's digital life, leading to increased demand for premium products, including gaming, thin and light, and Yoga series. Digital transformation has taken a different turn to drive commercial recovery as economies reopen. IDG's commercial PC sales and its premium product sales, such as Yoga and gaming PC, grew significantly year-on-year, translating into high ASP and stronger profitability for IDG PC mix. We further improve our ASP by 6%. Q1 marked the 14th consecutive quarters of profit margin expansion for IDG. The non-PC product was another bright spot, representing 80% of IDG revenue in Q1. Tablet revenue grew 58% year-on-year, and smartphone sales went up by 64%. Our smartphone profit expanded $85 million year-on-year, while operating margin reached new high of 4.9%, driven by consistent market share gains across all geographical markets. The successful execution of our smartphone strategy in product optimization and broader carrier ranging have proven to be earnings accretive. We will continue to increase ASP through investing in innovation and driving favorable premium mix. This will contribute to a healthy growth of our smartphone business, continue revenue growth while maintaining profitability. ESG continue to be a very important focus area for Lenovo. In the environment aspect, we are very proud. We exceeded our 2020 climate change commitment. Furthermore, we launched our new 2030 climate change goals. Our new 2030 science-based targets address both scope one and two direct emissions, as well as scope three emissions intensity in our value chain. In the social aspect, we formally announced our product diversity office in 2020, supporting our commitment to develop technology for diverse users and minimize bias inherent in the technology or product itself. In regard to governance, we established a new ESG executive oversight committee. The committee is comprised of executive from different business areas and geographies to ensure Lenovo ESG programs and investment effectively and appropriately address risk and opportunities. We are very pleased to note that our strong ESG performance has earned the recognition from a number of notable organizations. We will continue to honor our responsibility as an industry leader and corporate citizen. Looking ahead, we believe the accelerating global trend in digitalization and service-led transformation and the recovery of global IT spending post-COVID-19 will continue to benefit Lenovo. Our commitment to R&D investment will further elevate Lenovo leadership in innovation, while our branding efforts will raise customer recognition of such differentiation. Both are the key driver for us to further expand our gross margin. Our service-led transformation, commercial recovery, favorable mix product innovations such as full stack offerings from ISG, and our strong operation efficiency are all supporting factors to help achieve Lenovo medium-term financial target of doubling our net margin. SSG will play an important role as the group's high margin, high growth engine, targeting the fast-growing new IT service segments. In addition, our extensive exposure to commercial PC and ESMB infrastructure offer vast solution and service potentials, leveraging on strong as-a-service demand. We will continue to enrich our solution portfolios with in-house IP to drive scalable growth and build competitive edge for the next stage expansion. In ISG, we will continue our profitability improvement supported by consistent premium to market growth in both ESMB and CSP markets. We will continue to deliver industry-leading end-to-end infrastructure solutions and expansion from server to full stack offerings. In ESMB, we'll expand the product portfolio through servers into storage, software-defined infrastructure, software, services, and new segment coverage in edge, strong AI, and communication solutions, while rising profitability. In CSP, we will fully integrate our unique ODM+ model to expand profitable opportunities and drive quarter-to-quarter profit improvements. In IDG, we will sustain our profit expansion while investing in R&D to drive higher value at the premium products and smarter devices. We will further enhance our operational excellence in global supply chain management. The digital transformation took a new turn as the economy reopened, thus creating a strong demand and order backlog in commercial PCs. The premiumization trend could also accelerate as remote learning and working models have raised the bar for video and audio designs. Riding on the two trends, we believe the ASP and margin expansion in PC will continue to support our profit improvement. Our smartphone business will form an important driver for non-PC growth, while it's focused on sustaining strong growth momentum in North America and Europe, while maintaining market leadership in Latin America. It will further push product innovation and accelerate 5G smartphone launches to score wins in more market and stay on track for profitable growth. Our strong financial position and cash flow have provided a solid foundation on which Lenovo can proactively pursue growth opportunity ahead, particularly in the fast-growing service area. Lastly, we will reiterate to our shareholders Lenovo commitment to sustainable profitability increase. Thank you. Now we can take your questions. English only. Please be reminded to limit yourself to two questions at a time. Operator, I will now turn it over to you. Please give us your instructions. Please stand by while we compile the Q&A roster. The first question comes from the line of Huichen Yen from Huatai Securities. Please go ahead. Thanks. I'm Huichen Yen from Huatai, I have two questions. The first question is about your new segment, that is SSG. I noticed it's the first time Lenovo has officially resegmented the revenue. Can you please tell us more on the segment of SSG? I mean, what's the relationship between now the SSG and the former segments? What's your strategy on SSG's further development? That's my first question. The second question is about chips. Can you give us more color on the chips right now with respect to the laptop? Thank you. Okay. Now we have the new leader of SSG, Ken Wong, on in the call. Probably I would invite Ken to answer your first question. Regarding the chip shortages, so probably the Chief Operating Officer, Gianfranco, can answer the question. Thank you, Yuanqing. This is Ken, and thanks for the question. I think this is a really great question. I think we're very happy to see, in fact, there are increasing demand for more sophisticated services requirements coming out from new IT, I think as Yuanqing mentioned. With new IT, I think obviously the benefit has got to be able to help enterprises to increase efficiency, productivity, and competitiveness. I think the biggest challenge for a lot of people is that there's a lot of complexity and complication. I think the normal one, especially SSG's role, is to help our customer to navigate and overcome all these challenges in order to get the benefit. That's why if you look at our business, where we have basically three tower of services, and all entangled to work to provide the end-to-end solution to our customer regarding new IT. The tower one is mainly around our attached services. These are the basic warranty and also warranty upgrade to improve the ownership experience of our hardware products. Tower two is about managed service and also after service. This is the part where we add a lot of value, and also because a lot of data point that we got. This is the market where it's growing very, very fast. Some of the data point is suggesting that this is the part of the market that is growing at 30%+ on a year-to-year basis. We have been focusing a lot in this area in terms of building our capabilities, building our system and tools so that we can provide the best of the breed managed services. To share a little bit more detail, I think this year we're already able to provide tier two services, managed services, and after service in over 100 markets that we have business in. The target is to all the way towards 180 markets that Lenovo has business in. This is obviously a huge growth opportunity for our business. Last but not least, I think the tier three is about project solution and also vertical solution. This is where the part we can add even more value by understanding some industry specific requirement, leveraging some of the Lenovo internal IP, and provide an integrated solution, an end-to-end solution for our customer. With all these, I think we're very confident that the SSG business will continue to grow. I think as Yuanqing mentioned in his opening, that we'll continue to grow even at a speed that will be faster than the overall growth from a top line and also bottom line perspective. Thank you. Yeah. I want to add a couple of points. This business, solution and service business, is key to Lenovo strategy. We call it service-led 3S strategy. 3S means smarter IoT, smarter infrastructure, and Smart Verticals. All of those are related to solution and services. Second, SSG will help us to achieve our goal to sustainably improve our profitability. Because this is a high margin business. Actually, you see the last quarter's numbers. Their operating margin was above 20%. It was 22% year-on-year, and still increasing. That will help us to improve our profitability over time. Okay. Next question will be answered by Gianfranco regarding the supply shortage. Hello? Can you hear me? Yes. Talking of the supply shortages. First of all, one clarification. When we talk about chip, I think it's really IC, integrated circuit. Small components, mainly that are key for motherboard, the display, the RAM card, or some other things. Because sometimes I think there is confusion between CPU or other GPU and so on. The shortage, it's really on IC. We are facing these shortages since now it's already almost three quarters, right? We don't see further deterioration in the sense that they are still short. I think they will continue to be short at least for the next couple of maybe two or three quarters. We see some improvement here and there. On the other side, when you look at our growth, that is between 20%-30% on PC. It's a potential limitation, but it's a potential limitation to grow more than 25%, 30%. We still see for the future quarters, a good opportunity to continue to grow with this trend. As I said, it will not improve seriously, at least for the next two or three quarters. It's not only coming from PC demand. It's coming from automotive. It's coming from any kind of smart devices, including white goods, brown, any kind of really smart devices where you need even small board. Now you see electronics, you see small boards almost anywhere, right? PC demand for sure is one of the reason, but it's not the only reason of the shortage. We have seen on the other side good improvement on display. Display, I think we don't see any issue on display. We don't see any issue on any other major components. It's just IC, and as I said, it's mainly impacting motherboard and display in the sense that you need a board managing the display. Okay. I don't know if I answered your question. Yeah, thank you, Gianfranco. In summary, the key shortage is on IC, so the component shortage will probably last until first half of next year. Yes. We want to emphasize this shortage is driven by stronger than expected demand, not shrinking demand. Demand for devices better than the infrastructure, are all very strong. Actually, Lenovo's backlog is almost the same as the previous quarters. Another point is Lenovo has track record to drive better than competitors result regarding of the supply. Mainly because of Lenovo's unique business model. We are not like our competitors who outsource 100% of production to the third party. Lenovo, we have the hybrid, 50% in-house or 50% outsourcing model. This model give us more flexibility and a better relationship with tier two, tier three suppliers, upstream suppliers, so that we can manage our supply better. Even with the supply constraint, we are optimistic and confident to continue to drive the premier to the market growth. Thank you. Next question. Thank you. The next questions come from the line of Albert Hung from JP Morgan. Please ask the question. Hi, Yuanqing. Thanks for taking my question, and congrats on the good results. My first question is still regarding the service. Could you provide some analysis from quantitative analysis? What's the long-term target of service segment? What's the KPI for this? From qualitative analysis, could you share more colors on the difference in customer behavior between the service and traditional hardware segment? For example, how is the customer churn rate and how is the customer cross-selling opportunity for service segment? I guess one of the key question is whether the customer tend to adopt more than one partner in service model or they just use single source in service? My second question is the segment multi-margin achieved new record highs for PC and mobile PTI also achieved record highs. Several also show very meaningful loss reduction, but the group gross margin actually dropped on sequential basis. Could you help me to understand a bit more about the disconnection between gross margin and OP margin? Thank you. Ken, could you please answer the first question? [Service]. Yeah, Yuanqing. Thank you, Albert. Let me take the first question. Regarding the target, I think first of all, we're very happy to see the Q1 performance, right? The 30% year-over-year growth and 22% operating margin. As I answered the previous question, I think we continue to see A very strong demand for all kind of services, from attached services all the way to managed services and everything as a service. Our target in midterm is to maintain the SSG growth, which is faster than the overall Lenovo Group growth, for both our top line and bottom line. Could you please repeat your second question, is the cost impact on our margin or profit? Is that the question? Sorry. My second question is your OP margin actually achieved greater height, actually gross margin declined quarter-on-quarter. Could you help me understand the disconnection between these two compositions? [audio distortion] Okay. Only one thing, it has been growing almost 1.5 points year-to-year. It depends on the comparison, quarter-to-quarter or year-to-year. Wai Ming, you want to add something here? Yes, Yuanqing. I think there are a couple of reasons. Albert Hung, I think one already Gianfranco Lanci mentioned about the competition issue. I think the other one is obviously scale. I think quarter four numbers, we obviously get some, maybe because of scale, because of some one-off costs that actually drive that. In fact, it's actually not significant. I think for us, there may well be also some changes in terms of the mix of the product. I think resulting that, again, probably I need to give way more detail, for example, in different geography or in different countries. I think the profit margin or the gross margin of profit, is a little bit higher than the others, for example, like Japan generally. I think when the market size changes quarter to quarter, that actually has a small impact, I think, on our overall gross margin. Generally, I think as Gianfranco said, we actually have been looking, I think more comparable. I think it's really year to year. We actually been, I think, improving gross margin. That is our target. We also feel very comfortable that we can continue to maintain the margin improvement. I think resulting what Yuanqing said earlier, that it is our medium financial goal, I think is to through improvement in gross margin, obviously as well as operating efficiency, be able to bring our net margin, I think to double, I think from last year 2%-4%, I think medium-term target. We are obviously on track on that. Okay, next question. Thank you. The next question comes from the line of Donnie Teng from Nomura. Please ask a question. Thank you, management, for taking my question. My first question is regarding to your PC business. I think in the past two months, the COVID-19 confirmed cases in the U.S. surged a lot again from the very low base in May and June. Previously, I think my impression is like Lenovo believes that the commercial PC demand is increasing due to people will be back to office rather than work from home after the easing of the COVID. Now the situation looks like to be getting worse again in Western countries. I'm just wondering if you could give us an idea about our PC business outlook, in terms of commercial or consumer or educational segment. That's the first question. The second question is for inventory. In the past few quarters, I'm seeing that your raw materials and work in process inventory surged more meaningfully compared with the finished good. I'm just curious what kind of component materials or ICs are accumulated in the past few quarters, and whether if there is any demand deteriorating, if there would be any kind of risk on inventory write-off in the future. Thank you. The first PC-related question, could I invite our new IDG leader, Luca, to answer the question? Probably Gianfranco can answer the inventory question, or Wai Ming can add something. Luca, please. Hello, can you hear me? Yes. Good. Very good. Thank you for the question. I think, Donnie, you are asking whether the new COVID profile, how is affecting our PC segments. The demand. Yeah, the PC demand in each segment. Obviously we are seeing a very robust consumer segment demand still. We observed that in some of the country with the- With the lower COVID-19 rate or with the better COVID-19 situation, the demand slows down a little bit, but still maintains far superior to the previous pre-COVID-19 levels, so to say, demonstrating our theory that the PC is truly back at the center of people's digital life. That is for the consumer part. The commercial side, the demand profile and the outlook, we estimate it's very bright. We have noticed during the initial COVID-19, one year ago, many enterprises have lowered down investments. Now, due to the necessary, the must digitalization of their businesses, there is a very significant demand increase. We have noticed this initially more in the large and very large enterprises, namely our global accounts, but now it's expanding also to the large enterprises and the SMB. I would say we are very positive on the demand of the commercial PC business. For both segments, there is also an upgrade into the product demand, which means there is a higher demand of audio, video, microphone conferencing experience. That drives the premium PC higher, which consequently drives AUR and our margin opportunity higher as well. You also asked about the education. I think the education, namely Chromebook, is also in function of the learn-from-home status. There is a little bit of slowdown, particularly in U.S., we have noticed the Chromebook has lowered down a little bit. That's also related to the seasonality and to the government funding incentive, which we have reason to believe that will pick up. This education segment is probably the lowest among the consumer and commercial, but we still believe it's very early to say that the demand is trending down. It's just a pause. In any case, for us, Chromebook is a very small fraction of our PC revenue. I think it's less than 5%. Yeah. I want to echo Luca's point. Firstly, from what we can see, PC demand is still very strong in both consumer and commercial segments. Our backlog orders last quarter was similar to the previous quarter. Very big volume. We still cannot ship, we still cannot deliver because of the component shortage. From long-term point of view, we are equally optimistic because we think this pandemic has changed people's behavior. The hybrid working approach will last for longer, as you just said. That will drive the PC demand, at least keep it at the current level of, let me say, 350 million units per year level. Which is much higher than the pre-pandemic, which is just 260 million. Now, people spend more time every day on their PC, so that they will drive the faster replacement cycle. Also, it will definitely drive more penetration rate. That will help PC total market keep it stable. That's our view. Also, because commercial customers or market is getting recovered, we believe the average selling price will go up. Also, that will help us to improve the profitability. Given Lenovo's commercial PC products are stronger in the industry, particularly in the premium ThinkPad area. I think that will help us to improve the profitability. Regarding of the component you mentioned, I don't think that's the issue. Actually, it's driven by the supply shortage. We have to buy ahead for some components. Perhaps, Gianfranco Lanci, you want to add something here? No, yes. There is another element in my view also that is going to drive demand on PC in the next three to six months, which is Windows 11. Because it's going to be available very soon, and this will also help to drive demand first in consumer, second in commercial later. On the inventory, I think we did it on purpose to build up some inventory in terms of components, because with the shortage today, if you are in a good position in terms of inventory, then you can speed up manufacturing and ship as quick as possible. As I said, we still see back order very, very high. It's almost one quarter of back order, we really don't see any deterioration on demand. To have even more inventory, it will be good. With the shortage, you need to play between different components, you need to see what is available, what isn't, to make sure that in terms of square set, you are okay. We really don't see any possibility of the deterioration or write-off of the inventory. Unfortunately, it's not enough. Should be more, it depends on the shortage. Inventory is really not an issue. I think that clean the back order and shipping to the customer on time is the real issue we have today. We will not see any good solution for sure until the end of the year and probably even next year. The demand is so strong on consumer, still strong. Getting very strong on commercial, it's already a couple of quarters, almost three quarters. The impact of COVID-19 with the Delta and what we have seen. First of all, in the Western world, it's very clear that with the vaccine, people, they may get infected, but if they are vaccinated, they don't go to the hospital. It becomes like a flu, but it's not getting very serious. Second, I think most of the enterprise customer, all the larger enterprise customer, it's really not because they start to invest again, not because people are coming back to the office, but because they really want to speed up the digitalization of the company in order to be ready for any future surprise or future issue. I think that's nothing to do, in my opinion, with people going back to the office or not, when we look at commercial investment. I would say the only thing where you see a little bit of slowdown is education, mainly in units, Chromebook. We are not one of the largest player on Chromebook. Chromebook is for us today, something in the range of 5% of our revenue. We never been very focused on Chromebook also because talking about inventory, we prefer to use the parts and the components to build a better machine in terms of average selling price rather than building a Chromebook. We leave to our competitor to do it. I think it's the only area also due to some seasonality, because now it's vacation. It's the only area where we see a little bit of a slowdown. Consumer and commercial, we really not see any slowdown. Okay, next question. Thank you. Thank you. The last questions comes from the line of Jerry Su from Credit Suisse. Please go ahead. Thank you. Thanks for taking my question. My first question is regarding the channel inventory situation. I know that Gianfranco and other executives have talked about the strong demand, and also the backlog you have. I think market has some concern about the rising inventory level in some developed markets. Can you give us a little bit comment on that? The second question is regarding the Asia listing. Is there any new update you can share with the investors? Thank you. Okay. Gianfranco is going to continue to answer the channel inventory. No, I'm a little bit. Thank you for the question. I'm also a little bit surprised about the because we don't see any build-up of inventory in the channel. Exactly the opposite. In most of the level of the channel inventory has never been so low. We are talking in some cases of less than four weeks, three to four weeks. We know with the three to four weeks, usually you lose the sales because the profile of inventory never change. I don't know where the information is coming from in terms of building up channel inventory. For sure, it's not the case for us. As I said, the backlog that we have, it's almost one quarter. In most of the country, with people, the distributors, dealers, and so on, are still desperate to get the goods. Both commercial and consumer. As I said, again, probably there is, or we may see some in education inventory building up Chromebook, mainly in one geo, which is U.S. This may be the case. If we talk about overall inventory, as I said, I don't see issue on consumer, I don't see issue on commercial. We may see something on education. Again, in our case, as I said, we are only number three, or even number four, in terms of Chromebook suppliers. It's not going to be a major concern, even with some slowdown on the sales. Okay. Thank you. Thank you, Gianfranco. Regarding of the Asia, Wai Ming, you want to answer the question? Yes, Wai Ming. I think in terms of the CDR, application of CDR listing in Shanghai, we are definitely making progress. I think in accordance with the requirement laid out by, I think the relevant regulators. I think we achieved some milestones. I think give you a little bit color, including, for example, I think management and director doing the education and taking exam, I think getting all the advisor, I think verifying our documents. I think we are making very good progress. We obviously will follow the procedure as laid out by the regulators. If there is anything that I think that we want to go to public, we will obviously, I think, publish an announcement informing the market. In short, I think we are making progress and achieve, I think, a number of milestones as laid out by the regulators. Thank you. Okay, before we end the call. Can I invite Kirk and Buniac to give a one minute update on their business, regarding of our ISG and the MBG. Kirk, please. Sure. Wai Ming. I think we feel very confident in our continued growth, our year-on-year growth, quarter-on-quarter revenue growth, and improving profitability. We've now shared with you six quarters premium to market, with our all-time record revenue. We also had records across our server business, storage business, cloud business, high performance computing business, and communication service provider and service. In the areas of storage, we're seeing more than 50% year-to-year growth and 14 quarters of premium market growth, which has catapulted us to number two in the mainstream storage market of $25,000 and under storage. It's a good momentum story for us, and we continue to grow, we believe at a premium to market. Despite, again, certain supply shortages, we don't think that will limit our continued record revenue growth and improving profitability. Thank you. Thank you, Kirk. Definitely, we think the ISG has a big opportunity to further grow. That will transform from server only to the full stack of data center product storage, software defined, software and the services. We have successfully shifted from enterprise SMB only to cloud service providers. We will be focusing on the hybrid cloud as well in the future. The opportunity is huge. We will ensure the investment to guarantee the growth in that business. Okay. Buniac, one minute. Hello, everyone. Similar, we are seeing very strong demand coming from all geographies. We saw a record Q1, the best Q1 since 2015, 64% year-over-year growth. We see that sustaining across the future quarters. Many new ones like hackers like L.A. since 2018, record North America Q1 ever, five consecutive quarters of premium to market. We are seeing the ranging growing significantly in all regions across the globe. We also just deploy a very strong enterprise portfolio by launching ThinkShield. Not only by geo, but only we're growing in different segments. The final comment is that our 5G mix has grown from 10 to 14%, and we believe you are probably valuable between now and the end of the year as part of the portfolio. Thanks. Thank you. Thank you, Buniac. We are definitely impressed by the two business, particularly on their profitability improvement. I think our ISG is in the last mile to deliver profit. Our MBG delivered 5% operating margin last quarter. This has been very healthy business at the highest level. Also, we will reinvest this money in the mobile market to drive the growth. Okay. Thank you. Thank you everyone for participating the call. Yes. Thank you, Yuanqing. Thank you my executives. We thank you very much for joining today's call. If you have any questions, feel free to contact our IR department, and 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.