ComNav Technology (SH:688592) Quan Jing Wang·2025-08-13 05:51Core Viewpoint - The company Sinuo Navigation, which debuted on the STAR Market as the "first stock for high-precision positioning domestic substitution," has faced a dramatic decline in net profit by 179% in 2024, alongside regulatory issues regarding financial disclosures [1][6]. Company Performance - Sinuo Navigation, focused on high-precision navigation, experienced a significant drop in performance just one year after its listing in August 2023, with net losses reaching 33.05 million yuan in 2024 [2][6]. - The company reported a substantial decrease in gross margins across various product lines, with overall gross margin falling to 48.18%, marking the second consecutive year of decline since 2022 [4]. Financial Metrics - The gross margins for high-precision GNSS boards/modules, data collection devices, and system solutions decreased by 15.62, 0.63, and 6.08 percentage points respectively [4]. - Sales and management expense ratios have increased significantly, with sales expense ratio rising from 17.17% in 2020 to 25.35% in 2024, and management expense ratio increasing from 6.32% to 8.08% in the same period [4]. Market Position and Competition - Sinuo Navigation holds a market share of only 23.67% in the domestic high-precision GNSS board/module market, significantly lower than its competitor, Hexin Xingtong, which has a market share of approximately 62.02% [10]. - The company faces intense competition in the high-precision GNSS receiver market, where it holds a mere 6.17% market share, and in the agricultural autonomous driving system market, with only 3.13% market share [10]. Regulatory Issues - The company has been ordered by the Shanghai Securities Regulatory Bureau to correct significant discrepancies in its financial disclosures, including major changes in asset and liability items and inaccuracies in the use of raised funds [12]. - The resignation of the financial officer after only six months has raised concerns about the company's governance and transparency, further impacting investor confidence [13].