Integrated Circuit Business（2018H1）
Noticeably: The integrated circuit business (including Apex and SCC) total operating income reached 735 million RMB, sales gross profit reached 538 million RMB, an increase of 10% and 16% YoY.
During the reporting period, Apex' operating income and net profit both increased, up approximately 25% and 45% respectively YoY.
Strengthen internal collaboration with SCC R&D team, give full play to synergies, and R&D efficiency keeps leading in the industry. The development of the general-purpose MCU chip program is progressing successfully. In 2018H2, three related products will be released and shipped in small quantities.
Domestic and overseas sales both achieved growth, of which overseas sales exceeded expectations, sales revenue year-on-year growth of 37%. On the market side, we will keep the stability of core customers and improve profitability.
Noticeably: In 2018H1, SCC achieved operating income of 498 million RMB(including chip sales of 130 million RMB and consumables sales of 92 million RMB).
During the reporting period, SCC continued to strengthen its component business, leveraging its own component R&D capabilities and quality control, and vigorously explored sales channels for high-end consumable products, achieving a 32% YoY increase in revenue from consumables business.
SCC has complementary advantages and strong alliances with subsidiaries such as Apex and Lexmark International, and continues to rationalize the supply chain and overseas sales channels to maximize the company's overall revenue.
2018H1 Printing Consumables Business Summary
Noticeably: Printing Consumables Business operating revenue reached (including all holding subsidiaries) 1.539 billion RMB, sales gross profit of 382 million RMB, an increase of about 61%, 35% YoY.
Printing Consumables Business achieved both increased in operating income and net profit, which increased by approximately 19% and 12% respectively YoY. Among them, sales of compatible toner cartridges increased by about 25% YoY; sales of compatible ink cartridges increased by 7% YoY.
Steadily promote the transformation of consumables factory automation, some of which have achieved the expected results in reducing manpower and improving product quality.
2018H1 Pantum Printer Business Summary
The shipment of Pantum printers reached 308,000 units, an increase of 75% YoY.
Promote product differentiation and complete the development of PANTUM mobile APP project. Complete the work of importing LEXMARK high-end models into PANTUM product lines.
Complete the domestic model adaptation, and successfully entered the domestic products catalog. Successful import of various high-end Lexmark products. In Brazil, Russia and other developing countries layout of high-end products, and effectively improve the profitability.
Lexmark consumables factory production line smooth transfer, 2018H1 shipment punctual rate up to 98%.
In 2018H1, Lexmark's operating income increased by 11% YoY, gross profit increased by 64% YoY, Lexmark printer shipments reached 668,100 units, down 6.7% YoY, consumables shipments increased significantly, and consumables revenue increased by 11% YoY .
2018H1 Lexmark Printer Business Summary
Conduct regular meetings with Lexmark management team, strengthen communication and coordination in Lexmark integration progress; conduct monthly operational meetings related to Lexmark projects, exchange visits between SPV board of directors, senior management team and Lexmark executive team.
Promote the joint procurement and reduction project, which achieved significant cost reduction in 2017. In 2018H1, the joint reduction project continued to maintain significant savings.
Domestic sales have achieved remarkable growth in overall sales by strengthening information exchange, formulating corresponding channel strategies, opening up key accounts and e-commerce channels; and overseas markets have achieved leapfrog growth by focusing on the main e-commerce platforms and emphasizing the development of e-commerce business.