A Lenovo Yoga series laptop is on display at a news conference on the company's annual results in Hong Kong. Photo: Reuters/Bobby Yip

Chinese technology giant Lenovo on Thursday said its net profit for the fiscal year was back in the black, helped by stabilization in its core personal computer market.

The Beijing-based company, which has traditionally manufactured computers, but has been trying to broaden its smartphone business, said it had weathered “challenging global markets” as it executed a transformation plan.

The firm reported a net profit of US$535 million for the year ending March 31 compared to the previous year’s US$128 million net loss.

But revenue for the group slipped 4% to US$43.04 billion with PC shipments edging down.

It saw a year-on-year 1% fall in global PC shipments at 55.7 million units, against a 3% decline in the overall market.

The Lenovo Moto G5 is on display at the Lenovo stand at the Mobile World Congress in Barcelona. Photo: Reuters/Paul Hanna

Lenovo narrowly lost out to Hewlett Packard for the top position in global PCs in the past fiscal quarter, Bloomberg News reported.

“The group remains confident in its vision and strategy to drive long-term profitable growth,” Lenovo said in a Hong Kong stock exchange filing Thursday.

The firm added that its shift to its mobile business had also started to show signs of strengthening, with growth in shipments to Latin America, Western Europe and India, but saw a decline in revenue and shipments in China.

It has struggled to keep pace with Apple and Android rivals, with worldwide smartphone shipments falling 22% year-on-year dragged by performance in China, and its worldwide smartphone market share at 3.5% for the year.

Lenovo had announced plans to slash costs by US$1.35 billion and cut 3,200 staff from its non-manufacturing workforce when it announced first-quarter results for 2015.

The company purchased smartphone manufacturer Motorola from Google in a deal valued at US$2.91 billion and IBM’s low-end server business in 2014 as part of a strategy to expand business beyond PCs.