Marketing and Sales

APM Microelectronics Business (First Half of 2018)

Special Note: The company’s integrated circuit business (including Apex Microelectronics and the SCC chip business) recorded total operating revenue of approximately RMB 735 million and gross profit of approximately RMB 538 million, representing an increase of about ... compared with the same period last year. 10%、16%。

Strengthen internal collaboration with the SCC R&D team to fully leverage synergies, ensuring that new-product development efficiency remains globally leading. Progress on the general-purpose MCU chip project is proceeding smoothly, and in the second half of 2018 there will be Three related products Film is being loaded sequentially, with small-batch shipments already underway.

During the reporting period, Apex Microelectronics’ operating revenue and net profit both increased, rising by approximately ... compared with the same period last year. 25%、45%。

In terms of R&D

Both domestic and export sales recorded growth, with overseas sales outperforming expectations and posting a year-on-year increase of approximately 37% rapid growth. In terms of the market, we will continue to maintain stability among core and key customers and enhance profit stability.

In terms of operations and management

SCC Business (First Half of 2018)

Special Note: In the first half of 2018, SCC achieved operating revenue of RMB 498 million, including chip sales of RMB 130 million and consumable sales of RMB 92 million.

During the reporting period, SCC continued to consolidate its components business, leveraging its strengths in component R&D and quality control to aggressively expand sales channels for high-end consumables, resulting in a year-on-year increase of approximately 32% in consumables revenue.

SCC leverages the complementary strengths of its ecosystem subsidiaries, including Apex Microelectronics and Lexmark International, to forge strategic alliances that further optimize its supply chain and overseas sales channels, thereby maximizing the company’s overall value.

Operational aspects

In terms of the supply chain

General Consumables Business (First Half of 2018)

Special Note: Revenue from general printing consumables (including all wholly owned subsidiaries) reached RMB 1.539 billion, with gross profit of approximately RMB 382 million, representing year-on-year increases of about 61% and 35%, respectively.

The general printing consumables business achieved double-digit growth in both operating revenue and net profit, up approximately ... year on year. 19%、12% Among them, sales of generic toner cartridges increased year on year. 25% Left and right; sales of generic ink cartridges increased year on year. 7%。

On the domestic sales front, by integrating front-end and back-end operations and accelerating information sharing, we have developed tailored implementation strategies for different distribution channels, expanded our footprint among key accounts and e-commerce platforms, and achieved a substantial increase in overall sales. In overseas markets, we have placed a strong emphasis on developing online sales, focusing on major e-commerce platforms and delivering breakthrough growth in our e-commerce business.

Operational aspects

Sales and Marketing

In terms of R&D

Steadily advance the transformation of the consumables factory’s automation project, with some small-scale equipment already delivering improvements in workforce reduction and efficiency gains as well as enhanced product quality. Achieved the expected results. 。

Operational aspects

Pantum Printer Business (First Half of 2018)

Pantum printer shipments 30.8 ten thousand units, an increase of approximately ... compared with the same period in 2017 75%。

Promote the product Differentiated R&D , complete

Development of the “PANTUM” mobile app. Completion of “Lexmark”

The primary task is to integrate LEXMARK’s mid- to high-end printers into the PANTUM product lineup.

Complete Domesticated product model Adapt and Successfully shortlisted Table of Contents. Import Successful Several high-end Lexmark products and achieve external sales. By establishing a high-end product lineup in emerging markets such as Brazil and Russia, the company has effectively enhanced the profitability of its products.

Sales and Marketing

Lexmark’s consumables manufacturing facility has been smoothly relocated, with on-time shipment rates reaching as high as in the first half of the year. 98%

In terms of the supply chain

Operational aspects

In the first half of 2018, Lexmark achieved growth in both revenue and gross profit, with operating revenue increasing year over year. 11% , gross profit increased year over year 64% , Lexmark’s printer sales totaled 668,100 units, down year on year. 6.7% , shipments of original consumables increased significantly, and consumable revenue grew year over year. 11%。

Lexmark Printer Business (First Half of 2018)

Organize regular working meetings with the Lexmark management team to enhance communication and coordination on the progress of the Lexmark integration; convene monthly operational review meetings for the Lexmark project, board meetings of the SPV company, and facilitate mutual visits between the company’s senior management team and the Lexmark executive team.

The joint procurement cost-reduction initiative achieved significant cost savings in 2017. In the first half of 2018, the initiative continued to deliver strong cost-saving results.

In terms of integrated management

Regarding production relocation