Ninestar Reports Results for First Half of 2020 rtmworld

Ninestar Reports Results for First Half of 2020

Ninestar Reports Results for First Half of 2020

Ninestar Reports Results for First Half of 2020 rtmworld

Ninestar Founding Chairman, Jackson Wang

According to China-listed company information disclosure website, Ninestar registered an operating income of 9.89 billion yuan (US$1.44 billion) in the first half of 2020, down 8.26% from the same period from last year.

Net profit attributable to the publicly listed company dropped 3.72% to 358.91 million yuan (US$52.40 million).

Printer Business Operations

Pantum printer business:

  • Pantum’s various operating figures reveal rapid growth. Global printer shipments increased over 50% compared to the same period from last year, while the original consumables shipments reported a 60% year-over-year growth.
  • Despite the impact brought on by the COVID-19 crisis, Pantum printer sales continued to maintain a profitable growth of more than 80% against the trend in the global commercial market.
  • International business continued to expand, with printer sales increasing more than 30% year-over-year.

Lexmark Printer Business:

  • During the reporting period, Lexmark’s operating income of 7.2 billion yuan (US$1.05 billion) was a decrease of 13.39% compared to last year. It’s net profit of 112.94 million yuan (US$16.49 million) reflected an increase of 290.62% year-on-year.
  • Due to the COVID-19 crisis, Lexmark business slowed down in mature markets such as North America and Europe, as well as emerging markets such as Asia-pacific and Latin America. However, Lexmark has a leading printing market share in large retail and pharmaceutical chains in Europe and the United States. As retail and pharmaceutical industries suffered less impact from the COVID-19 than other industries, therefore it allowed Lexmark business to be more resistant to the crisis.
  • In addition, Lexmark ensured its leading position in MPS and major clients by active interaction with the major client as well as frequent product bidding activities.
  • Given all these factors, Lexmark’s overall sales revenue in the first half of 2020 was better than the average experienced by other OEMs in the printer market.

Printing Consumables Business Operation

Consumables Business Asset package:

  • During the reporting period, the consumables asset package achieved operating income of 1.49 billion yuan (US$ 217.55 million), up 23.37% comparing to the same period from last year; net profit was 154.35 million yuan (US$22.54 million), a year-on-year increase of 1.98%.
  • Sales and sales revenue ranked first in the compatible consumables industry. Revenue increase exceeded net profit growth mainly because the sales growth in the first half of the year was dominated by household model products and the sales of high-value products decreased, resulting in a decline in average gross profit.
  • In April and May, toner cartridge shipments continuously hit a new high, while ink cartridge shipment continuously exceeded 10 million units since May, to also achieve a record high. In the first half-year, the company actively expand its oversea online business, resulting in a more than 40% sales growth comparing to last year. Through continuously promote the company’s brand strategy, Ninestar’s branded ink cartridge and toner cartridge sales revenue ratio continued to grow during the reporting period.  Although the promotion of high-end channels was greatly affected by the epidemic, there was still substantial growth in some regions.
  • During the period, sales of recycled toner cartridges and recycled ink cartridges increased more than 50% year-on-year.

Subsidiaries business operation

  • Zhuhai National Resources & Jingjie Printing Technology Co., Ltd (Zhongrunjingjie) operation income during the reporting period was of 149.64 million yuan (US$21.85 million), up 49.41% compared to last year, with a net profit of 12.13 million yuan (US$1.77 million ), up 30.35% year-over-year.
  • Zhuhai Xinwei operation income during the reporting period was of 286.75 million yuan (US$ 41.87 million), increasing 19.41% compared to last year, while net profit was 15.34 million yuan (US$ 2.24 million), up 50.94% year-over-year.
  • Topjet Technology operation income turned out to be 289.5252 million yuan (US$42.28 million ), up 27.89% compared to last year, with a net profit of 27.96 million yuan (US$ 4.08 million), an increase of 133.09% year-over-year.
  • Apex Business Operation (Chip Business)
    • During the period, Apex Microelectronics achieved an operating income of 654.48 million yuan (US$95.57 million), basically the same as the same period last year. Net profit was 281.61 million yuan (US$41.12 million), down 22.99% comparing to last year. The main reasons for these changes are:
      • Due to the COVID-19 in the first half-year, Apex consumables chips overall shipment increased more than 30% due to the increasing demand for house printing, however, high-value products shipment decreased in the commercial market.
      • New products were comparatively less than before in the first half-year, price competition of existing products continued, and the average product price declined.
  • SCC Operation
    • During the reporting period, SCC core products demands fell sharply due to the COVID-19. Operation income decreased 25.49% compared to last year to 320.83 million yuan (US$ 46.85 million), while net profit decreased 307.44% to -12.55 million yuan (US$-1.83 million).
    • SCC and the Group made joint efforts in product research and development to ensure the first-launch advantage and maximize sales and profit margins. In the first half of 2020, it launched more than 250 new products. Meanwhile, SCC actively optimized and adjusted its existing product portfolios to lessen the company’s inventory pressure and overall operation burden. In the first half-year, it reduced 2/3 inventory target for the year.
    • Despite the COVID-19 impact, SCC still gained a considerable number of new online customers in Europe and the United States. Leveraging the Group’s advantage as well as through deepening cooperation with OEMs, high-value customers in the future will bring more stable business relationships as well as better profit.



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