Final: Ninestar

Final: Ninestar Reports Net Profit Growth in Q3

Final: Ninestar Reports Net Profit Growth in Q3

Final: Ninestar Reports Net Profit Growth in Q3According to www.cninfo.com.cn, Ninestar realized operating revenue of RMB 5.118 billion (US$799.391 million) in the third quarter (Q3), up 2.08% year-over-year, while net profit attributable to shareholders of the listed company turned out to be RMB 249 million (US$38.890 million), up 343.11% compared with the same period last year.

For the first three quarters, Ninestar generated operating revenue of RMB 15.025 billion (US$2.347 billion), up 0.83% year-over-year; while net profit attributable to shareholders of the listed company increased 62.53% year-over-year to RMB 675 million (US$105.424 million).

Ninestar claims that the main reasons for the growth are due to the continuous revenue and profit growth of its self-developed printers (including consumables) and integrated circuit Business.

  1. Printer Business

During the reporting period, Lexmark operation showed a trend of steady growth and profit increased obviously compared to the same period last year, thanks to the ease of the COVID-19 and the massive supply from its enterprise partners. For the first three quarters, Lexmark printer sales increased 17.46% year-over-year in units, with sales revenue increasing 5.67% year-over-year, calculated in U.S. dollar calibre. Net profit increased 800% compared to the same period last year.

During the reporting period, Pantum, in the custody of Ninestar, continues to maintain a trend of rapid growth in the global industrial market. For the first three quarters, Pantum printer shipment increased 50% year-over-year. Pantum laser printer further enhanced its market ratio and brand awareness in the global market. Pantum realized operating revenue of RMB 2.805 billion (US$438.127 million), up 117.75% year-over-year, with net profit increasing 363.40% to RMB 513 million (US$80.125 million).

As the report was disclosed, Ninestar has completed the acquisition of 100% shares of Pantum. Having Pantum formally as a subsidiary will help bring out the dual-brand synergy effect for Pantum and Lexmark printers, building whole range printer product lines and saving R&D costs. With complementary advantages and enhanced operation efficiency, Ninestar will embark on a new journey to become a world leading OEM printer manufacturer.

  1. Integrated Circuit Business

During the reporting period, Ninestar launched new consumable chips and its printer chip business is growing steadily. For the first three quarters, Apex Microchips (including Geehy Semiconductor) operating revenue increased 3.89% year-over-year, with net profit up 37.07% year-over-year.

  1. Compatible consumables Business

In the first three quarters, Ninestar compatible printing consumables business grew under pressure. Through active new business exploration, Ninestar generated a revenue growth of 58% in its toner cartridge recycle business, and achieved sustained growth in its ecommerce business.

At the same time, the company continued to improve the efficiency of financial management, to achieve refined management of cost control, and to develop foreign exchange derivatives such as forwards and options to hedge against exchange rate fluctuations. As a result, the compatible consumables operating performance in the third quarter was effectively improved.


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