The automotive industry has been in a long-term recession, and the new four-dimensional map is aimed at the long-term battle of autonomous driving transformation

In the context of the explosion of artificial intelligence technology, autonomous driving technology, which has been widely concerned by the automotive industry, has also begun to enter the public’s field of vision, and the capital market has therefore paid more attention to the dynamics of the autonomous driving field. On August 27, NavInfo, a well-known domestic digital map and autonomous driving service provider, announced the first half of 2020 financial report.

The semi-annual report is not optimistic

The financial report showed that its revenue for the first half of the year was 961 million yuan, a decrease of 11.28% compared with the same period last year, and there was a slight decline; the net profit attributable to shareholders of listed companies was 163 million yuan, a decrease of 290.61% compared with the same period last year. Go to loss.

Specifically, NavInfo’s revenue and net profit attributable to shareholders have seen a significant decline. In particular, the net profit attributable to shareholders has fallen directly from a profit of 85.6 million yuan in the same period last year to a current loss of 163 million yuan, a plunge of nearly 3%. Times. And behind the sharp drop in profits, it has nothing to do with the overall coldness of the new core business of Mind Map.

In terms of core business, NavInfo’s performance is not satisfactory at all. Not only did the revenue of the two core businesses of navigation and location big data decline by 39%, the revenue of advanced assisted driving and autonomous driving, Internet of Vehicles, chips and other related businesses also fell by nearly 30% year-on-year. This was the most important cause of the decline in NavInfo’s performance. Key factor.

After the business revenue was stretched, the capital market also lost confidence in NavInfo. After the release of the semi-annual report on August 27, NavInfo’s share price fell 3.99% the next day, from 17.06 yuan at the close of the 27th to 16.38 yuan the next day, a significant drop.

The dilemma that NavInfo faces is not just a problem of falling stock prices. The financial report for the first quarter of this year shows that NavInfo has lost 72.59 million yuan. This semi-annual report shows that NavInfo’s losses have expanded again. This is undoubtedly worse for NavInfo.

However, from the perspective of industry analysis, NavInfo’s financial report is not only due to problems in its own operations, but also related to the negative impact of the sudden decline in sales in the auto industry under the influence of the epidemic.

Automotive industry downturn drags on

As a digital map service provider, the navigation business, which occupies the main revenue position of NavInfo, is highly dependent on car companies. The revenue model of its navigation business is mainly to provide car and machine manufacturers with paid car maps for profit, and the car maps account for up to 60% of NavInfo’s navigation business revenue.

As the navigation business is highly dependent on auto companies, NavInfo will naturally suffer after the auto industry is facing a cold winter. According to data from the China Association of Automobile Manufacturers, domestic auto sales in 2018 were 28.081 million, and the growth rate of auto sales fell by 2.8%. This is the first time that the domestic auto industry has experienced negative growth. It is precisely because of the decline in auto industry sales that NavInfo New business revenue has also declined.

After the growth of the auto industry suffered a period of weakness, a sudden new crown epidemic in 2020 made it worse. Under the influence of the epidemic, the production and sales of the automobile industry have been further affected. According to data from the China Association of Automobile Manufacturers, domestic car sales fell by 92% in the first half of February, and sales plummeted by more than 90% year-on-year.

The general environment of the automobile industry is unfavorable, and NavInfo will inevitably be implicated. Therefore, it is not difficult to understand the decline in its navigation business. In addition to the navigation business, NavInfo’s autonomous driving, chips, Internet of Vehicles and other businesses also provide services for the automotive industry, and naturally they will inevitably be affected by the winter of the automotive industry.

Specifically, during the epidemic, the car sales of Toyota, Volkswagen and other companies that NavInfo cooperated with have all declined, which directly caused NavInfo’s revenue to plummet. However, the difficulties faced by the auto industry did not make NavInfo lose its morale. Under the unfavorable market environment, NavInfo is still actively seeking changes and looking for new business growth points.

In the latest financial report, NavInfo’s board of directors also stated that the company is still improving product quality and increasing resource integration to promote high-quality business transformation and development.

Overweight autonomous driving transformation

During the epidemic, NavInfo used refined operations to expand its diversified business realization, and focused on promoting navigation, advanced assisted driving and autonomous driving, in-vehicle chips, location big data, and Internet of Vehicles five major businesses to achieve high-quality Transformation.

Specifically, in terms of navigation business, NavInfo has improved its map data and navigation data compilation service capabilities, and added the image classification and recognition function of AR navigation products; in terms of advanced assisted driving and autonomous driving business, it has launched assisted positioning and navigation. Oil and other services, and provide map solutions for L4 level unmanned autonomous taxis;

In terms of chip business, NavInfo started to commercialize chip technology, and completed the second-generation AMP and TPMS chip tapeout; in terms of location big data business, it improved the service scope and accuracy of the business, and further enhanced the three-dimensional space-time service. In terms of vehicle networking business, NavInfo and JD Zhilian Cloud jointly released the “Jingyuzuo & Shake 8” car machine, which increased hardware sales channels and broadened revenue sources.

In the field of autonomous driving, NavInfo takes the five major business sectors as the core to create a “data + cloud + AI + chip + software and hardware integration” solution to enhance the comprehensive service capabilities of autonomous driving technology.

From the perspective of business promotion in all aspects, NavInfo’s transformation is mainly to improve service capabilities and commercialize. Under the unfavorable market environment, the purpose of NavInfo’s transformation is obviously to improve its own liquidity and alleviate the problem of tight capital chain under the impact of the epidemic. In addition, NavInfo has stepped up its business transformation efforts and continued to raise its barriers to competition on the autonomous driving track.

However, the development of the domestic autonomous driving industry is still immature, and there are still many problems in technology research and development and commercial applications. Under such circumstances, NavInfo will face many challenges if it wants to rely on its self-driving track to reverse the loss.

Long war

At present, the autonomous driving industry in the domestic market is still facing technical problems such as sensor recognition and data network transmission. In addition, the application of domestic autonomous driving technology to L5 level technology will still take a long time. Under such circumstances, the autonomous driving industry will still be in the technology research and development stage for a long time, which is obviously not good news for companies with insufficient financial strength.

Autonomous driving is an industry with high investment and heavy research and development. When the application of technology has not been fully implemented, the high investment in research and development will inevitably make NavInfo’s capital chain more tense. Furthermore, NavInfo has just turned from profit to loss in the first half of 2020. If it increases R&D investment, its performance pressure will increase again.

Secondly, the decline in sales growth in the automotive industry has also had an adverse impact on NavInfo’s application of autonomous driving technology. And due to the impact of the epidemic, the long-term uncertainties in the auto market will increase, which means that NavInfo will face many challenges in a relatively long period of time.

Moreover, the changes in personnel have also adversely affected NavInfo. After the semi-annual report was released, NavInfo’s deputy general managers Dai Donghai and Jing Muhan submitted applications for resignation, which may have an adverse impact on the company’s normal operations.

Under the influence of many negative factors, NavInfo’s layout in the field of autonomous driving has become more unpredictable. In this context, how NavInfo solves the problem of losses and continues to maintain its place in the autonomous driving competition has become a topic of more concern from the outside world. The introduction of new technologies and national policies has pointed out the direction for NavInfo.

Under the influence of the wave of new technologies such as 5G, AI, and the Internet of Things, autonomous driving technologies that are more relevant to smart cities have also received policy support. As an in-depth participant in domestic autonomous driving, NavInfo has ushered in the dawn of dawn The moment. However, given the current strength and resources of NavInfo, if you want to continue to participate in this technological revolution, NavInfo needs to make more preparations. This will be a long-term war, and you need to continue to fight for endurance.

The Links:   1MBI100L-060 2MBI450U4N-120-50

Bookmark the permalink.

Comments are closed.