Ninestar Reveals Strong Growth for First Half of 2021
According to cninfo, Ninestar’s profitability for the first half of the 2021 year was higher than predicted and expected.
- Operating profits were RMB 721.93 million (US$111.53 million), up 18.87% year-over-year for the first half of 2021;
- Profit totalled RMB 788.90 million (US$121.88 million), up 24.92% year-over-year.
- Net profit attributable to shareholders from the publicly listed company was RMB 446.45 million (US$68.97 million), up 24.39% year-over-year.
- Total operating revenue was RMB 9.94 billion (US$1.54 billion), slightly up compared to the same period last year.
According to the report, the reasons for the improved results included:
- The overall operating conditions of the company’s printer business have improved significantly compared to last year.
Printer sales volume and profit both achieved year-on-year growth, among which, Lexmark OEM strategic partner cooperation business has been achieved shipments, the renewal rate of MPS business has further stabilized, and Lexmark’s profitability has continued to improve.
- Chip business revenue and the net profit achieved simultaneous growth, and the profit growth rate was higher than the revenue.
Aftermarket consumables chip profit increased year-over-year. As a leading aftermarket consumables chip manufacturer, Ninestar maintains a long and stable cooperation relationship with wafer suppliers. Though confronting wafer production shortage during the period, Ninestar enhanced its core competitiveness which laid a good foundation for sustainable development in the future.
- The company develops foreign exchange derivatives business such as forwards and options to hedge the exchange rate of various business modules. It is estimated that the non-recurring gains and losses brought about by the company’s purchase of derivative financial products will compensate the pre-tax profits of RMB 120 million (US$18.54 million), which is a good hedge against the exchange losses of Lexmark’s RMB loans and the company’s performance due to exchange rate fluctuations.
According to Fortune China, Ninestar is ranked No.480 on the Fortune Top 500 list 2021. Ninestar has been on the top 500 list since 2018.
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