Due to factors such as the progress of contract signing and technical status, North Navigation may suffer its biggest loss since going public in H1 of 2024. The company predicts that its net income attributable to the parent company for the first half of the year will be between -68 million and -78 million yuan.
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According to Cailian Press on July 9th, due to factors such as the progress of contract signing and technical status, North Navigation(600435.SH) may suffer its biggest loss since going public in H1 of 2024.
After trading hours today, North Navigation released a statement that predicted a net income attributable to the parent company of -68 million to -78 million yuan and a non-net profit of -84 million to -94 million yuan for H1 2024. In the same period of the prior year, net income attributable to the parent company and non-net profit was 0.147 billion yuan and 0.142 billion yuan respectively. Please use your Futubull account to access the feature.
Regarding the reason for the loss in performance, North Navigation stated in the announcement that due to factors such as the overall progress of contract signing and technical status of customer units, some relevant product formal contracts had not been signed, or some signed contracts had not yet generated income in the first half of the year. Although revenue declined year-on-year in the first half of the year, fixed costs such as production preparation still occurred, resulting in negative net income attributable to the parent company for this reporting period.
It is worth noting that the company already showed a loss in Q1 2024, and the reason for the expected loss in H1 is similar to Q1, but the impact of the "technical status" factor has been added. Cailian Press reporters dialed the company's securities department phone several times this afternoon and planned to further consult the company on this issue, but no one answered the phone.
According to North Navigation's financial report, this is the second time in nearly a decade that its net income attributable to the parent company has shown a loss in the mid-year report. The last time was in H1 of 2020 with a loss of 16.5201 million yuan.
The announcement showed that North Navigation's Q1 revenue was about 0.079 billion yuan, a year-on-year decrease of 86.54%, the net income attributable to the parent company and non-net profit was about -0.05 billion yuan and -0.059 billion yuan respectively. Based on this calculation, the net income attributable to the parent company for Q2 is expected to be between -18 million yuan and -28 million yuan.
In response to the rare loss in Q1, some investors asked on the interactive platform: "Given the poor performance in Q1, the company disclosed on April 18 that the revenue target for 2024 is still set at 3.8 billion and the profit target is 0.29 billion. The revenue and net profit targets for this year still exceed last year's. What are the reasons?" The company replied that it was working to reduce costs and increase efficiency by various means, striving to achieve the expected indicators, and some matters belong to information that can be exempted from disclosure or should be disclosed after being declassified according to relevant regulations.
It is reported that over 90% of the company's business is military-civilian dual-use products, which mainly involve guidance control, navigation control, detection control, environmental control, stability control, radio and satellite communication, electrical connectors, unmanned flight products, and technologies.