OFILM January 30 evening disclosure 2022 annual performance forecast, the company expects last year’s loss of RMB 4.1 billion – 5.2 billion, the same period as last year’s loss of 2.625 billion. Net profit after deducting non-recurring gains and losses is expected to be RMB 3.96 billion to RMB 5.08 billion, compared to a loss of RMB 2.582 billion in the same period last year.
For the reason of the change in performance, OFILM also gave the main reason. OFILM said that the large year-on-year decrease in net profit last year was mainly due to the impact of the termination of the purchasing relationship with specific customers, which resulted in a significant year-on-year decrease in shipments related to specific customers in 2022, as well as the assumption of fixed operating costs incurred in connection with them after the termination of the purchasing relationship.
Second, due to changes in the international trade environment, recurring global epidemics, a slowdown in consumer demand in the downstream end market in the short term and restrictions in the smartphone business of H customers due to chip disconnection, the Company’s shipments of certain products decreased significantly year-over-year, resulting in an operating loss.
Third, the Company’s overall operating revenue decreased significantly year-over-year, and the amortization of fixed costs led to an increase in product unit costs; the Company’s exchange loss increased due to the fluctuation of the U.S. dollar against the RMB, which had a certain impact on the profit in the reporting period. Fourth, in order to focus on regional development and improve the company’s production efficiency and overall operational efficiency, the company carried out the integration of the park, and the related integration costs had a certain impact on the results for the period.
In addition, OFILM also said that due to the slowdown of the end market demand, the company’s related product shipments decreased significantly and the capacity utilization rate decreased, so the company conducted a comprehensive inventory and impairment test of various assets, and made impairment provisions for assets that may incur impairment losses; the company’s related shareholding companies suffered operating losses during the reporting period, which led the company to bear the corresponding investment losses.
OFILM’s main business products include optical imaging modules, optical lenses, microelectronics and smart car-related products, which are widely used in consumer electronics and smart cars represented by smartphones, smart homes and smart VR/AR devices. On March 12, 2021, Officera announced that it received a notice from a specific customer outside of China that the specific customer plans to terminate its procurement relationship with the company and its subsidiaries, and subsequently the company will no longer obtain existing business orders from the specific customer, which has dealt a significant blow to Officera’s business.
OFILM has been making losses for three consecutive years. The announcement shows that OFILM’s net profit for 2020 is RMB -1.945 billion and for 2021 is RMB -2.625 billion.
Ovation also stressed that the company is currently promoting strategic upgrading, vigorously developing new areas of innovative business such as smart cars, VR / AR and IoT ecology, and increasing investment in research and development in advance, which also had an impact on the current period’s performance.
Ovation has publicly stated that the company will take the steady development of the smartphone business as the basic guarantee, accelerate the development of smart cars, smart homes and other new fields and other innovative businesses, extend upstream of the industry chain, build a business structure system of smartphone, smart car and new fields, and provide one-stop optical services for customers.
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