Ninestar releases 2019 semi-annual financial report

Ninestar releases 2019 semi-annual financial report

Ninestar releases its semi-annual financial report for 2019, achieving an operating income of approximately 10.779 billion yuan/1,396,550,000USD(1.4billion USD), a year-on-year increase of 3.44%; net profit attributable to shareholders of listed companies was approximately 373 million yuan/52,089,450USD(52million USD), an increase of 19.27% ​​year-on-year

Ninestar’s business segment analysis:

(1) Apex Microelectronics: Apex achieved operating income of approximately 652 million yuan/91,136,560.00USD (91million USD) during the reporting period, up 3% year-on-year; net profit was approximately 366 million yuan/51,155,183.16USD/51million USD, which was the same as the same period of the previous year. The consumable chip business maintained its leading position in the industry and the IoT business.

(2) Printing consumables business operations

1. The company’s consumables business asset package: it achieved operating income of approximately 1.209 billion yuan/16,772,400.00USD/16million USD during the reporting period, up 22% year-on-year; net profit was approximately 151 million yuan/20,965,500USD/20million USD, up 18% year-on-year, consistently ranked first in the consumables industry.
2. Three aftermarket consumable branch companies: Zhuhai National Resources & Jingjie Printing Technology Co., Ltd(NRJP), Zhuhai Kingway Image Co. Ltd.(Kingway), Zhuhai Topjet Technology(Topjet)

NRJP: 2019 achieved operating income of about 100 million yuan/ 13,984,000USD/14million USD in the first half of the year, up 8% year-on-year; net profit was 9.31 million yuan/ 1,300,512USD/1million USD, up 4% year-on-year.

Kingway: 2019 achieved operating income of about 240 million yuan/ 33,564,000USD/34million USD in the first half of the year, up 11% year-on-year; net profit was 10.16 million yuan/ 1,398,250USD/ 1.4million USD, down 17% year-on-year.

Topjet: 2019 achieved operating income of approximately 226 million yuan/ 31,600,450USD/31million USD in the first half of the year, up 12% year-on-year; net profit was 11.99 million yuan/1.2million USD, down 17% year-on-year.

(3) SCC: during the reporting period, SCC realized operating income of approximately 431 million yuan/ 60,262,420USD/60million USD and net profit of 6.05 million yuan/ 838,920USD/0.8million USD, up 123% year-on-year. The increase in profit was mainly due to several aspects:

1 The high-end consumables business grew rapidly, with sales growth of 33% and revenue growth of 24%;

2 reduce staff and increase efficiency, resulting in a cost reduction;

3 The sale of idle fixed assets has produced certain benefits.

(4) Printer operation

1. Pantum printer business: Pantum 2019 global shipments is 483,000 units in the first half of the year, up 57% year-on-year, sales revenue increased by 170%.
2. Lexmark printer business: Lexmark achieved operating revenue of approximately 8.22 billion yuan/1,146,606,000USD/1.15 billion USD during the reporting period, which was the same as the same period of the previous year.

The printers’ shipment was 466,000 units, down 3% year-on-year. The main reason was that Lexmark tightened its sales promotion in the European region in the first quarter of 2019, resulting in a significant decline in the channel market. Also, Lexmark sales declined in North America. Despite this, Lexmark reversed the decline in printer sales in the second quarter, with sales in the second quarter higher than 7% in the same period last year.

Compared with the decline in the channel market, the MPS market continued to maintain steady growth, with sales up 33% year-on-year. Printer sales in the Chinese market have also achieved a 9% growth through cooperation with Pantum. In the first half of the year, the sales of consumables were 4% higher than in the same period of last year.