Ninestar reports strong H1 growth
September 2, 2024
Ninestar Corporation posts significant profits and growth but faces operational headwinds and financial hurdles.
Ninestar Corporation, the printer and consumables business, has reported a healthy financial performance for the first half of 2024. The company saw its net profit surge to 1.18 billion RMB (€151 million/ $163 million), a significant rise from the 332.92 million RMB (€42 million/ $46 million) recorded in the same period last year. Improvements in operational efficiency and strategic investments drive this sharp increase.
Revenue also ticked upward, reaching 12.79 billion RMB (€1.64 billion/ $1.77 billion), reflecting stable demand for Ninestar’s products. Shareholders’ equity climbed to 10.53 billion RMB (€1.35 billion/ $1.46 billion), up from 9.72 billion RMB (€1.25 billion/ $1.35 billion) at the beginning of the year, showcasing the company’s strengthened financial position. Notably, the company achieved a positive cash flow of 859.53 million RMB (€110 million/ $119 million) from its investing activities, marking a significant turnaround from the previous year’s negative figures.
However, Ninestar’s success is tempered by several operational challenges. The report highlights a decrease in total assets, down to 37.09 billion RMB (€4.75 billion/ $5.14 billion) from 38.27 billion RMB (€4.91 billion / $5.30 billion), and a decline in net cash flow from operating activities, which dropped to 491.16 million RMB (€63 million/ $68 million) from 765.65 million RMB (€98 million/ $106 million) in the previous year. Additionally, the company faced a significant cash outflow of 2.34 billion RMB (€300 million/ $325 million) from its financing activities, reflecting increased debt repayments and reduced inflow from new financing.
The report also provides detailed financial performance data for several key subsidiaries, underscoring their importance to Ninestar’s overall business. Ninestar Holdings Company Limited, for example, reported revenue of 7.71 billion RMB (€990 million/ $1.07 billion) and a net profit of 307.95 million RMB (€39.5 million/ $42.6 million). On the other hand, Zhuhai Ninestar Printing Technology Co., Ltd. posted a net loss of 6.77 million RMB (negative €870,000/ negative $940,000), highlighting some operational difficulties within the group. Zhuhai APEX Microelectronics Co., Ltd., another critical subsidiary, performed strongly, generating 675.23 million RMB (€87 million/ $93 million) in revenue and 298.69 million RMB (€38.3 million/ $41.3 million) in net profit.
These subsidiary performances reflect a mixed picture, with most contributing positively to the group’s results while others struggle with profitability. Key subsidiaries like Lexmark and Static Control, particularly active in the U.S., play crucial roles in Ninestar’s global operations. The report underscores the significance of these entities, with financial guarantees and equity pledges being significant aspects of Ninestar’s corporate structure.
End Note: This article was based on a semi-annual report initially published in Chinese. AI-assisted in translating and summarising the report. A human editor from our news team reviewed the translation and crafted the final news story to ensure accuracy and clarity.
Categories : City News
