On January 30th, NavInfo released its 2023 performance forecast, anticipating revenues to range between 30.6 billion and 34.2 billion yuan, with a projected net loss of approximately 9.77 billion to 12.21 billion yuan.
NavInfo mentioned that in 2023, the unit price of products from automotive supply chain-related companies continued to decline. In response to market changes, the company is steadfastly focusing on automotive intelligence business, developing core products, actively exploring the market, reforming operational management, and gradually transitioning from a product provider to a solution provider.
During the year, NavInfo further clarified the business focus on "Intelligent Driving." The number of units equipped with its integrated intelligent driving software and hardware products continued to rise, contributing to a year-on-year growth in revenue for the intelligent driving business. The MCU chips experienced a continuous increase in sales.
However, revenues for cloud computing (Smart Cloud) and in-car intelligent cockpit (Smart Cockpit) businesses declined year-on-year due to factors such as market competition and focus adjustments.
Regarding the net loss situation, NavInfo cited three reasons: firstly, market competition led to a continuous squeeze and decline in the gross profit of the company's products; secondly, the company, in actively responding to market changes, continued to promote management and organizational optimization, strengthening customer localization services, resulting in a year-on-year increase in operating expenses and sales expenses; additionally, losses from some affiliated companies had a certain negative impact on the company's short-term performance.
As mentioned earlier, NavInfo has undertaken a strategic adjustment to focus on its core business. Simultaneously, it is actively implementing cost reduction and efficiency improvement measures, streamlining organizational structures, optimizing personnel allocations, enhancing supply chain management, and continuously improving operational decision-making efficiency and market perception.
As per the plan, in 2024, the company will continue to focus on its core business and implement various cost reduction and efficiency improvement measures. It aims to prudently control research and development expenditures of a speculative nature, further enhance resource utilization, and strive to improve profitability.
