Operation 

Integrated Circuit Business（2018H1）

Marketing

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.

R&D

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.

SCC Business（2018H1）

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.

Operating

Supply Chain

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.

Operation 

Marketing 

R&D

Steadily promote the transformation of consumables factory automation, some of which have achieved the expected results in reducing manpower and improving product quality.

Operation 

2018H1 Pantum Printer Business Summary

The shipment of Pantum printers reached 308,000 units, an increase of 75% YoY.

Marketing 

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.

R&D

Lexmark consumables factory production line smooth transfer, 2018H1 shipment punctual rate up to 98%.

Supply Chain

Operation 

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.

Integrated Management

Production Transfer

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.