According to its official first-half year shareholder report, lodged in Chinese with the Shenzhen Stock Exchange, Ninestar (stock code: 002180) enjoyed a 678.14% year on year increase in revenue.
Reporting on the first half of 2017, revenue was CN¥11.12billion (US$1.67 billion) compared with CN¥1.43 billion (US$274.8 million) from the same period in 2016. However, the net profit was a negative CN¥1.02 billion (US$160 million) or -537.6% when compared to the previous year. The main reason for this is the cost of the acquisition of Lexmark. However, at the end of this period, Ninestar’s total assets are valued at CN¥49.67 billion (US$7.61 billion), giving the company a year-over-year (YOY) increase of 909.45%.
Key information also contained in the report includes:
Ninestar has not rushed to replace David Reeder who resigned earlier in the year as CEO of Lexmark. Ninestar has informed shareholders it has formed a Lexmark Executive Committee—consisting of board members and core senior executives of the company—responsible for planning the vision and developing the strategies for the company. Ninestar has also set up an Integration Management Office to oversee the integration of Lexmark into Ninestar.
Ninestar claims its acquisition of Lexmark has been good for both companies, reporting:
In addition, Ninestar has also spent CN¥556.41 million (US$85.06 million) in acquiring other Zhuhai-based printing consumables companies including acquiring Topjet Technology Co., Ltd, Zhuhai Xinwei Technology Co., Ltd and Zhuhai National Resources & Jingjie Printing Technology Co., Ltd.