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SAN FRANCISCO, California -- March 13, 2007 -- In its 2006 annual
report to shareholders, Matthews International Funds disclosed
ownership of 323,690,000 shares of Lenovo Group Ltd. common stock
spread in three of its funds.
The Matthews Asia Pacific Fund holds 21,662,000 shares of Lenovo
stock, with market value of $8,800,370 as of Dec. 31, 2006. The
fund's investments in Lenovo constitute 2.0% of its net assets,
which total $449.7 million.
The Matthews Pacific Tiger Fund owns 264,186,000 Lenovo shares,
with market value of $107,327,791 as of Dec. 31. The Lenovo
holdings constitute 3.2% of the fund's net assets, which total
$3,303,717,242.
The Matthews China Fund holds 37,842,000 Lenovo shares, with
market value of $15,373,632 as of Dec. 31. The fund's net assets
total $966,528,041.
A total of 8,523,927,000 shares of Lenovo stock are outstanding
as of Dec. 31, 2006. Shares of Lenovo were traded at HKD2.870
(US$0.367) a share at the close of business on March 16, 2007.
Lenovo has been in the Matthews portfolio since March 1998.
Mark W. Headley, chief executive officer and portfolio manager of
Matthews International Capital Management, LLC, said that while
Lenovo has enjoyed strong momentum in its domestic business, its
transformation into a global entity has been challenging, with a
costly reorganization of International Business Machines Corp.'s
business in progress.
Lenovo is the dominant computer manufacturer and distributor in
China, with over 35% of the domestic market for personal
computers and a growing cell phone business. Lenovo made a bold
entry into the global computer business with the acquisition of
IBM's PC business in 2005.
Mr. Headley notes that there is a very real risk that Lenovo's
strength in China will be offset by the difficulties of the
global markets it is attempting to master. However, the fund
manager is confident that Lenovo has the management skill to make
the leap to being a truly global Chinese technology company.
The Matthews Funds are headquartered at Four Embarcadero Center,
Suite 550, in San Francisco, California.
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