▲ Picture source: Huawei official website

It is noticed that many media such as Jiemian News have previously reported that OFILM is the camera module supplier of Huawei Mate 60 series and accounts for the majority of the share, including rear cameras, front cameras, and fingerprint modules. , the value of a single unit is 500-600 RMB. After this news came out, OFILM’s stock hit the daily limit today, with a turnover rate of 5.43% throughout the day, a turnover of 1.106 billion RMB and an amplitude of 9.97%.

▲ Picture source OFILM official website

OFILM released its 2023 semi-annual financial report last month. During the reporting period, OFILM achieved revenue of 6.315 billion RMB, a year-on-year decrease of 18.79%, and a net loss attributable to the parent company of 354 million RMB, a year-on-year decrease of 59.52%.

The announcement showed that the company’s operating income in the second quarter was 3.619 billion RMB, a month-on-month increase of 34.22% and a year-on-year increase of 13.69%. It is worth noting that the company achieved a net profit of 4.3921 million RMB in the second quarter, making a profit in a single quarter.

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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.

Translated with www.DeepL.com/Translator (free version)

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