Hirain names memory prices and NavInfo wafer prepayments in third-quarter filings

Beijing Hirain Technologies and NavInfo both published third-quarter reports through cninfo on October 30, each naming an upstream component cost in its explanation of the numbers.

Hirain’s filing gives third-quarter revenue of RMB 1,679,989,187, up 8.01 percent, against nine-month revenue of RMB 4,303,175,593, down 3.60 percent. Its explanatory table attaches a separate cause to each period. The third-quarter net loss attributable to shareholders of RMB 10,720,501, a 189.95 percent deterioration, is attributed to an increase in research and development spending; the nine-month loss of RMB 392,713,197 is attributed to falling revenue, rising prices for upstream raw materials including memory, and a declining gross margin. Research and development spending reached RMB 312,846,494 in the quarter, 18.62 percent of revenue and up two percentage points, and RMB 925,251,666 over nine months, 21.50 percent of revenue and up 3.64 points.

NavInfo’s report describes a different mechanism. Explaining a nine-month operating cash outflow of RMB 358,085,460 against RMB 250,166,391 a year earlier, the company wrote that the increase came from stocking ahead: its chip business, affected by tight industry supply, paid for wafers and packaging and testing in advance to lock in capacity, while multiple projects in its intelligent-driving business entering mass production led it to hold raw materials in advance to secure deliveries and resist upstream price rises. It characterized the outlay as a phased operating commitment rather than a permanent one.

NavInfo’s quarter and its nine months point in opposite directions. Third-quarter revenue rose 33.62 percent to RMB 1,201,367,522 and the quarterly loss narrowed 17.86 percent to RMB 326,747,314, while the nine-month loss widened 15.14 percent to RMB 815,570,647 on revenue up 11.60 percent. Neither filing names a customer or a supplier.