Ninestar Corporation has released its preliminary full year 2019 results recording steady growth during the reporting period.
The company recorded a total operating income of ¥23.245 billion ($3,32 billion/ €2.98 billion) for the full year 2019, an increase of 6.01% over the same period of the previous year. Operating profit increased 50.57% to ¥1.210 billion ($173.25 million/ €155.45 million) year-on-year.
The operation of Ninestar’s consumables business segment continues to improve. Ninestar said that its patented technology advantages and excellent product quality gives the company growth and market share advantage. In its report, Ninestar said that the growth rate of the company’s general consumables segment in 2019 is much higher than the industry level. Sales revenue increased by 14% year-on-year.
For the chip business segment, Ninestar said operations are stable with steady growth. Total shipments were approximately 373 million, a year-on-year increase of 15%, of which 32-bit high-end MCU chips shipped in 2019 were 2.13100 million units, a year-on-year increase of 188% and 32-bit MCUs in the non-printer industry shipped about 27 million units, a year-on-year increase of 759%. In terms of the market, Ninestar also says in this segment market competition has been fierce and says as a result profits have declined for this segment.
Lexmark printer sales increased by 7% year-on-year, the growth rate is at the forefront of the global market, the company adds. Consumables revenue increased by 4% year-on-year. Ninestar adds that various unfavourable factors such as European and South American exchange rates fluctuations and the increase in tariffs due to Sino-US trade war in 2019 did have a significant negative impact on Lexmark’s revenue and profits. Ninestar writes that these two effects mean that profit decreased by $64 million (€57.44 million) and in addition, Lexmark’s RMB loans will be affected by exchange rates in 2019.
