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Ninestar reports half-year results

August 28, 2019

The company has reported its half-year results for FY 2019, recording a 19.27 percent increase in operating profits and a 3.44 percent increase in operating income.

Ninestar recorded a total operating income of RMB 10.778 billion ($1.504 billion/ €1.356 billion) in the recording period which is an increase of 3.44 percent year-on-year. Net profit stood at RMB 372.755 million ($52.046 million/ €46.924 million) which is an increase of 19.27 percent year-on-year.

The company stated that in the reporting period, although facing an unfavourable background of global economic downturn and intensified market competition, the company continuously improved the technological advancement of products through close coordination among various businesses.

Apex Microelectronics has reduced its new products this year, the market is fiercely competitive, and prices have fallen, resulting in a decline in operating profit for the company. Lexmark was affected by exchange rates, resulting in a decline in operating profit.

Apex Microelectronics achieved operating income of RMB 652.32 million ($91.080 million/ €82.118 million) during the reporting period, up 3 percent year-on-year; net profit was RMB 356.66 million ($49.798 million/ €44.897 million), which was basically the same as that of the same period of last year.

In the first half of the year, Apex continued to maintain its core competitive advantage in the launch of new products. More than 300 new products were released and further completed. At the same time, in response to the firmware upgrade of printer manufacturers in the first half of the year, Apex has provided an effective product solution for the remanufacturing industry in a timely manner.

In the first half year Ninestar reported operating income of RMB 1.285 billion ($179.405 million/ €161.771 million) for the printer consumables business segment, up 22 percent year-on-year; net profit of RMB 15.34 million ($2.14 million/ €1.93 million), up 18 percent year-on-year, sales volume and sales are consistently ranked first in the consumables industry, according to Ninestar’s report.

The company added: “The US ITC first instance ruled that the company’s patented products were not infringing, further enhancing the core competitiveness of the company’s products; the e-commerce business achieved breakthrough growth. At the same time, sales abroad in some markets have grown by more than 40 percent, far ahead of the industry’s average growth.”

SCC achieved operating income of RMB 40.6 million ($5.668 million/ €5.111 million) and net profit of RMB 6.05 million ($844,701/ €761,565) during the reporting period, up 123 percent year-on-year. Ninestar explained that the increase in profit was mainly due to several aspects; High-end consumables business grew rapidly, sales increased by 33 percent, revenue increased by 24 percent, reduced staff efficiency, resulting in cost savings, and selling idle fixed assets, resulting in a fixed income.

Pantum printer’s 2019 global shipments were 483,000 units in the first half of the year, an increase of 57 percent, sales revenue increased by 170 percent.

Lexmark achieved operating income of RMB 8.215 million ($1.147 million/ €1.034 million) during the reporting period, which was basically the same as the same period of the previous year. The number of printers sold was 646,000 units, down three percent year-on-year. The main reason, according to Ninestar is, that Lexmark tightened its sales promotion in the European region in the first quarter of 2019, resulting in a significant decline in sales in the channel market.

In addition, Lexmark’s OEM customers are in North America. Sales in the European market have declined. Despite this, Lexmark reversed the decline in printer sales in the second quarter, and sales in the second quarter were higher than last year, up seven percent over the same period. Compared with the decline in the channel market, the MPS market continued to maintain steady growth, with sales up 33 percent year-on-year.

Lexmark consumables production has been transferred to the company’s Zhuhai production in the first half of 2019. In terms of printer hardware, the Lexmark printer production line has been established in Zhuhai.

Ninestar is looking to optimise procurement throughout 2019 and beyond to add more cost savings for the company.

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