Xiangzhou District, Zhuhai

Chinese printing tech firm Ninestar Corporation, previously known as Apex Technology, has reported that it is benefiting from last year's series of sizeable domestic and transnational mergers and acquisitions, turning its losses into profit.

The company's most recent financial statement showed that it earned revenue of 5.1 billion yuan ($772.8 million) in the third quarter of 2017, a year-on-year increase of 554.5 percent. The net profit attributable to its parent company – Zhuhai Seine Technology – was 508 million yuan ($77 million).

This marked the end of months of consecutive losses since the fourth quarter of 2016, and indicated leapfrog development based on a larger operation scale, according to one analyst.

The big expenses causing the losses were due to considerable payments for the merger of consumables businesses Seine Technology, Static Control Components (SCC) of the United States, and the acquisition of shares in Apex Microelectronics in Zhuhai.

Production base of Ninestar Corporation [Photo by Zhang Zhou / Zhuhai Daily]

It was the highest-profile commercial activity during the second half of 2016, together with PAG Asia Capital and Legend Capital of China, who led a consortium of investors to acquire Lexmark International Inc for $3.6 billion – the largest acquisition in the global printer industry.

Lexmark is a renowned global laser printer manufacturer headquartered in Kentucky, the US, providing advanced technology in providing customized services for high-end users. Its high-speed laser printing products are widely applied in banks and hospitals, and occupy a share of 20 percent of the global market.

Ninestar will benefit in global market competition from the talent and technology resources brought by the industry and capital integration, said Yan Xiaolang, vice chairman of the China Semiconductor Industry Association.

Wang Dongying, chairman of Ninestar and CEO of Seine Technology said taking this opportunity they are able to tap into the multibillion high-end market. "The swift development momentum of printing market in developing countries promises good prospects though the current core market lies in developed countries," Wang claimed.

A research agency pointed out that with further reduction of the amortization of acquisition expenses in 2018, a solid foundation will have been laid for rapid growth and huge profits.

Ninestar Corporation was built in 2000 under the name of Apex Technology and is based in Xiangzhou District of Zhuhai, Guangdong Province.

The company now owns more than 4,000 inventions and patents. With some 18,000 global employees' dedicated efforts, the company has sold its products in more than 150 countries and regions.

The corporate name change took place this May.