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Ninestar Reports Massive Losses of $233 Million for Year 2023.
Ninestar Corporation, a leading Chinese printer and cartridge manufacturer, reported a massive net loss of 1.5 billion yuan (about $233 million) for the fiscal year 2023, according to its performance forecast released on January 30, 2024. This is a significant drop from the net profit of 1.1 billion yuan (about $171 million) that the company reported in 2022.The company attributed the poor performance to several factors, such as the impact of the Uyghur Forced Labor Prevention Act (UFLPA), a U.S. law that bans imports from Xinjiang, where Ninestar has some of its production facilities; the global chip shortage that affected the supply and demand of printer products; the increased competition from other printer manufacturers, such as Lexmark, which Ninestar acquired in 2016; and the ongoing transition from inkjet to laser printing, which reduced the demand for Ninestar’s inkjet cartridges.
Ninestar’s revenue and profits declined across all its business segments, including printer cartridges, printers, chips, and cloud services. The company’s printer cartridge segment, which accounts for more than half of its revenue, saw a 32.6% decrease in revenue and a 75.4% decrease in profit. The company’s printer segment, which includes Lexmark and Pantum brands, saw a 25.7% decrease in revenue and a 92.8% decrease in profit. The company’s chip segment, which includes Apex Microelectronics and Geehy Microelectronics, saw a 19.2% decrease in revenue and a 66.7% decrease in profit. The company’s cloud service segment, which includes Ninestar Cloud and Ninestar Connect, saw a 9.8% decrease in revenue and a 55.6% decrease in profit.
Ninestar said it is facing a challenging future and needs to restructure its business and diversify its products. The company said it will focus on developing new technologies, such as artificial intelligence, big data, and cloud computing, to enhance its competitiveness and innovation. The company also said it will explore new markets, such as medical devices, biotechnology, and environmental protection, to expand its business scope and revenue sources.
Tonernews.com: From our experience in dealing with news from Ninestar, Ninestar’s earning news may be unreliable.
We suspect that they fabricate all numbers to deceive investors and even the Chinese Authorities.
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