Ninestar Building New Laser-Printer Factory; Announces Ninestar, Lexmark Financial Results

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On September 12th, China-based Ninestar Corporation (previously known as Apex Technology Group) – which in 2016, along with PAG Asia Capital, acquired Lexmark International for $3.6 billion – reported that it had won a bid for use of industrial-zoned land in Pingsha Town, Zhuhai City, China, where it intends to build a factory for manufacturing laser printers.

The acquisition is said to be part of Ninestar’s strategy to become one of the top-three global vendors of laser printers.

Ninestar’s bid was 201.5 million yuan ($29.31 million).

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Lexmark Integration

Ninestar also recently reported that its integration of Lexmark is “progressing well,” and that its Lexmark business is expected to “break even” for the fiscal 2018 year.
Ninestar also reported that Lexmark’s 2017 printer sales totaled 1.48 million units, an increase of more than 10 percent year-over-year.
Ninestar forecasts that Lexmark’s annual printer sales volume to reach 1.7 million units.
In the first quarter of 2018, the Lexmark business reported a loss. However, Ninestar forecasts that Lexmark will break even in its  second  and  third quarters. For the fourth-quarter 2018, Ninestar forecasts Lexmark will report a small profit, and maintain a neutral or a small profit throughout the year.

Ninestar Financial Report

Ninestar reported that its main chip business and printer-consumables business in first-quarter 2018 contributed a profit of 220 million yuan, and profit growth year-over-year of 36.8 percent.
Ninestar forecasts that its annual general-purpose consumables chip business is expected to contribute 700 million yuan of profits, with main business profit of 1.1 billion yuan, “maintaining sustained and steady growth.”
The company stated that its new products are designed for the high-margin market, and that its chip business maintains a gross profit margin of over 70 percent.

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