Ninestar releases half-yearly results
August 28, 2020
Pantum shipments were up 50%, while Lexmark maintained profitability, consumable sales up 23%, with remanufactured 50% year-on-year. SCC sales were impacted by COVID in US and European markets with revenues down 25%.
During the reporting period, the COVID-19 pandemic continued to spread around the world, causing substantial economic turbulence, also impacting the Ninestar Group of companies.
The economic situation of various countries in the world continued to decline, and more and more users and enterprises chose home office working environments, and the printing volume of SMB corporate offices decreased. However, with the implementation of remote office and home learning, the demand for home printing increased significantly.
During the reporting period, the company achieved a total operating income of RMB 9.988 billion ($1.455 billion/ €1.211 billion), a decrease of 8.26% from the same period of the previous year. Net profit attributable to listed companies was RMB 358.91 million ($51.279 million /€43.031 million), a year-on-year decrease of 3.72% over the same period.
Pantum’s various operating data continued to grow rapidly. Global printer shipments increased by more than 50% year-on-year, and shipments of original consumables increased by 60%. Sales revenue maintained continuous growth.
Lexmark achieved operating income of RMB 7,220 billion ($1.05 billion/ €883 million), a year-on-year decrease of 13.39%, and net profit of RMB 112.94 million ($16.46 million/ €13.81 million), an increase of 290.62% year-on-year. Ninestar explained that affected by COVID-19 pandemic in the first half of 2020, the global printer industry was severely hit, and the overall business of the industry fell by double-digit numbers.
Ninestar reported that Lexmark has effectively maintained the company’s profitability by implementing a series of effective cost reduction and management cost saving measures.
During the reporting period, the consumable asset package achieved operating income of RMB 1,491 billion ($217.21 million/ €182.45 million), an increase of 23.37% year-on-year. The company recorded net profit of RMB 154.35 million ($22.48 million/ €18.88 million) for the segment, an increase of 1.98% year-on-year. The main reason why the increase in revenue was higher than the increase in profit was that the sales growth in the first half of the year was dominated by household models and high-value products, Ninestar explained.
The company said that gradually normal production capacity resumed from March, with continuous innovation in toner cartridge shipments from April to May. Since May, the shipment volume of ink cartridges has continuously exceeded 10 million, achieving a record high. In the first half of the year, the company actively expanded overseas online sales by more than 40% over the same period last year.
In terms of products: the sales of remanufactured toner cartridges and remanufactured ink cartridges increased by more than 50% year-on-year
SCC achieved operating income of RMB 320.83 million ($46.73 million/ €39.25 million), a year-on-year decrease of 25.49%, and net profit of RMB -12.55 million (-$1.83 million/ -€1.53 million), a year-on-year decrease of 307.44%. The main reason is Europe and the US market has been affected by the new crown epidemic, the demand for core products has dropped sharply, and the scale of manufacturing costs and procurement costs is uneconomic, Ninestar explained. During the reporting period, more than 250 new products have been launched.
Categories : City News
Tags : Business Financials Lexmark Ninestar Pantum Static Control Components