Ninestar Grabs Larger Cartridge Market Share

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:

  1. Ninestar’s toner cartridges exports now account for 10.2% of all cartridges made in China—a rise of 1.2%;
  2. operating income and net profit from its IC chip business (managed mainly through its subsidiary Apex Microelectronics) saw a YOY increase of 30% and 40% respectively;
  3. cartridge sales: 65% of Ninestar’s full-year target has already been achieved in just 6 months, witnessing a YOY growth of 25%. coming from new products, new clients and an increase in e-commerce;


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:

  1. the number of Lexmark’s printers sold was 717,000 in the first-half of the year, a 19.7% YOY increase;
  2. the manufacture of Lexmark’s cartridges, previously supplied by a third party, has already been transferred to Zhuhai, China;
  3. the manufacture of Lexmark printers will follow with the introduce Lexmark printers as a Chinese-made product to China;
  4. Pantum, another subsidiary of Ninestar, has already imported three Lexmark printer models into China with two more being introduced later in 2017.

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.

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