Ninestar Pleased with Annual Growth Report

Ninestar Pleased with Annual Growth Report

Translators have been busy working on China-based Ninestar’s annual report for 2019. It reveals Ninestar’s total revenue amounted to 23.2 billion RMB (US$ 3.3 billion), up 6.01 percent when compared with the same period the previous year. Operation profits increased 50.57 percent to 1.21 billion RMB (US$ 0.17 billion), while total profit reached 1.16 billion RMB (US$0.166 billion) with an overall increase of 52.64 percent as compared to the same period in the previous year. Net profit to shareholders decreased 22.81 percent compared to the same period last year.

Ninestar claims the main reasons for the changes are:

1. Printing consumables continue to deliver good performance. Due to its patented technology advantages, product quality advantages and market share ratio advantages, the ratio of Ninestar aftermarket printing consumables in 2019 is higher than the average of the whole industry. Printing consumables sales revenue is expected to increase by 14 percent over the previous year.
2. Chip business is stable. Chip shipments continued to grow and reached 0.37 billion units, a 15 percent increase over the previous year. As part of that, 32-bit MCU chip shipments increased 188% to 0.21 billion units. The shipment of the 32 bits MCU chip for non-printing industry turned out to be about 27 million, up an amazing 759 percent over the previous year. The chip market ratio increased slightly due to the competitiveness of the new release. The revenue from chip sales was flat compared with the previous year. The prices of chip dropped due to fierce competition, meaning profits from chip sales also decreased.
3. Lexmark’s printer business continued to perform well with a big increase in total profits. The number of printer units sold increased by 7 percent and revenue from the sale of consumables increased by 4 percent. A number of factors, such as the trade war between America and China, currency exchange rate fluctuations in Europe and South America, resulted in a decrease of profitability for Lexmark by US$64 million in 2019.
4. In addition, due to the exchange rate impact of RMB loans for Lexmark, exchange gains in 2019 decreased by US$56 million compared with 2018.
5. Lexmark was also affected by the US tax reform in 2018 and increased the current net profit attributable to shareholders of listed companies by approximately 256 million RMB (USD$5 million). In 2019, the impact of this factor was basically eliminated.
6. The total profit of joint-stock companies increased by 52.64 percent over the same period. The net profit attributable to shareholders of listed companies decreased by 22.81 percent over the same period. The reason for the decline in net profit attributable to shareholders was mainly due to the impact of Lexmark’s 2018 US tax reform. The net profit attributable to shareholders of listed companies is about 256 million RMB (USD$5 million). In 2019, this factor will basically be eliminated.

In addition, the report reveals that at the end of the reporting period, Ninestar was in good financial condition and its assets and net assets rose slightly. The company’s total assets were 3.83 billion RMB (US$0.54 billion), an increase of 6.27 percent from the beginning of the period. The owner’s equity attributable to shareholders of the listed company was 5.76 billion RMB (US$0.82 billion), an increase of 12.60 percent from the beginning of the period.

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