BEIJING, May 22 (Reuters) - China's Lenovo ( LNVGF ),

the world's largest personal computer manufacturer, on Thursday

reported a worse-than-expected 64% fall in fourth-quarter

profit, which it said was mostly due to a non-cash decline in

the value of warrants.

Lenovo ( LNVGF ) reported revenue of $16.98 billion for the quarter

ended March 31, which exceeded analysts' expectations of $15.6

billion, LSEG data showed.

Net profit to the company's owners came in at $90 million,

well short of the average analyst estimate of $225.8 million,

according to LSEG data.

Lenovo ( LNVGF ) launched its first AI-powered PCs in China last

May and followed that with a global rollout in September. CEO

Yang Yuanqing has projected that AI PCs will account for a

quarter of Lenovo's ( LNVGF ) shipments by 2025, potentially reaching 80%

by 2027.

The company has integrated technology from Chinese

startup DeepSeek - which has upended the AI sector with its

low-cost model - into its devices, including PCs and tablets.

Lenovo's ( LNVGF ) infrastructure solutions group, which includes

servers, posted a 64% revenue increase in the March quarter

compared with the previous year.

The solutions and services group, which offers cloud-based

software for enterprise clients, reported $2.2 billion in

revenue, up 22% from a year earlier.

Lenovo's ( LNVGF ) Hong Kong-listed shares dropped 2.08% after the

earnings release. They have dipped 1.69% for the year to date.