OFilm Claims Power Shortages Have No Major Impact on Production and Operations

ofilm

Under the background of tight energy supply, power outage notices have been issued in many places across China, and some enterprises have staggered peak production or even stopped production as a result. OFilm, a former Apple supplier and mobile phone lens module manufacturer, responded to issues related to power outages at an investor interaction platform last Friday, saying that it has no great impact on the company’s production and operations at present, and that the company will pay close attention to the trend of relevant policies.

According to public information, OFilm started operations in 2002 and was listed on the Shenzhen Stock Exchange in 2010. The company’s main business is in fields including smartphones and smart cars with optical image modules, optical lenses, microelectronics and smart car related products as its main offerings.

The company released its estimated performance for the first three quarters at the Shenzhen Stock Exchange yesterday, saying that it expects a net loss of 58 to 70 million yuan ($9.01-$10.88 million) in the third quarter, compared with a profit of 237 million yuan in the same period last year.

At the same time, OFilm also pointed out in the notice that due to the termination of purchasing relationship by a specific overseas customer, the company’s product shipments related to the customer in the third quarter were 0, down 100% year-on-year. Due to great changes in the international trade environment, H-named customer’s smart phone business was restricted by chip supply cut-off and other measures, resulting in a sharp drop in shipments of several products of the company compared to the previous year.

In this regard, it is widely believed that the specific overseas customer is Apple and the H-named customer is Huawei.

SEE ALSO: Power Crunch Causes Key Suppliers of Apple and Tesla to Stop Production in Eastern China’s Jiangsu Province

OFilm used to be a member of Apple’s supply chain, and 30% of its orders came from the tech behemoth. However, in March this year, it was kicked out of the supply chain by Apple, which caused OFilm’s profits to plummet by more than 90% in the first half of the year, then only earned 34 million yuan in the first half of the year.