Shanghai (ZXZC)- The technology company NavInfo announced its net profit attributable to the parent company's shareholders in the third quarter plunged 209.73% year on year with a loss of around RMB61.42 million ($8.7 million). It gained revenue of RMB451 million ($63.9 million), a year on year decline of 15.34%, during the reporting period.

Meanwhile, in the first three quarters, the company saw its revenue amount to RMB1535 million ($217.4 million) (+0.76%) and net profits total around RMB24.18 million ($3.4 million) (-88.97%).

The performance decrease was mainly attributed to three reasons according to its performance review released earlier. 

Due to the drop in PV sales and stiff industrial competition, there was a decline in the revenue from much more profitable map compilation and chip businesses . NavInfo reported the income in chip products tumbled 34.44% to RMB184 million ($26 million) in the first half of 2019 (H1).

Besides, the profit margin of IoV-related business for commercial vehicles was relatively low despite a significant increase in its revenue. The H1 report showed the income in IoV part of the technology company was RMB329 million ($46.6 million), jumping 38.16% year on year. But its gross profit margin dropped to 49.42% from the year-ago period because of the higher operating expenditure.      

One more reason is that the increased losses of the shareholding company (Mapbar Technology Limited) have made the investment income fewer. 

Furthermore, NavInfo has invested a lot in areas such as autonomous driving solution and IoV to take a leading position in navigation map, dynamic traffic information, navigation software development and customized telematics solutions to both passenger and commercial vehicles (photo source: NavInfo).