After disclosing a major reorganization last week with a new emphasis being placed on China, Lenovo’s top executive spells out a new overall strategy for the global tech giant.

Chair and CEO Yang Yuanqinq describes the strategy as “three-wave” with an emphasis on continuing innovation in PCs, igniting growth in its struggling mobile and data center businesses, and putting more emphasis on cloud devices as well as services.

Yang disclosed the latest Lenovo reorganization in a blog post in China and then through some speeches were he said the China-born company would put more emphasis on sales and operations in that country. He also rehired a former top mobile executive who had led the acquisition of Google Motorola Mobility and then left Lenovo.

In the earnings release overnight Wednesday made in Hong Kong, Yang added some more details to the new approach.

“To drive further growth, we have clearly defined the three-wave strategy. We will maintain PC leadership in scale, profitability and innovation in the first wave, while building our second wave, mobile and data center businesses into growth engines. Simultaneously, we will execute our third wave of “Device + Cloud” and “Infrastructure + Cloud” to capture the opportunities brought by new technologies. With this new strategy, we are confident to achieve long term, sustainable growth.”

Lenovo did lost its global sales leadership in PCs in the first quarter to HP, according to research firm IDC. A report from Gartner showed Lenovo keeping the lead.

Will the strategy work? Analyst Jack Narcotta of Technology Business Research notes:

“Lenovo’s revamped go-to-market strategy fueled a return to revenue growth, but operating losses in Mobile and Data Center threaten its profitability.”

Inside the earnings

The strategy reflects an earlier one embraced by Yang of “attack and protect” – attacking growth globally and at the same time defending its home turf.

However, the thinking that led to the deals for Motorola Mobility and IBM’s x86 server business have yet to deliver on the “attack” side.

The server business, which is based near Lenovo’s dual corporate headquarters in Morrisville (the other is in Beijing), continues to bleed cash and was recently reorganized with new management brought onboard.

On the smartphone side, sales and shipments are improving, Lenovo said in the earnings release, but noted “outside China.” No mention was made in the earnings recap about mobile operations in that country where Lenovo has been hammered by rivals offering cheap phones as well as continued competition from high-end sellers Apple and Samsung.

Investors reacted initially with a positive move. The combined news sparked a 3.7 percent jump in Lenovo shares, which are traded on the Hong Kong stock exchange.

However, the company still faces many challenges, according to an analyst.

“Component prices are giving Lenovo near-term pressure,” Chris Yim of Bocom International Holdings told Bloomberg. “The revenue was OK, but operating expenses are still high.”

Lenovo noted that quarterly revenues increased nearly 5 percent year-over-year to $9.6 billion, which nearly matched expectations from analysts polled by Bloomberg.

Net profit for the quarter hit $107 million.

Annual revenues, however, declined 4.2 percent to $43 billion.

Despite that drop, Lenovo reported a $535 million profit for the year, reversing a $128 million loss the previous fiscal year.