OFilm Reports H1 Net Loss of $125.8M after Losing Important Customers

OFilm, a high-technology manufacturing and assembly company in China, on August 29 released its financial report for the first half of this year. Its revenue during the period was 7.78 billion yuan ($1.1 billion), a year-on-year decrease of 33.78%. Its net loss was 870 million yuan, compared with the net profit in the same period last year of 33.897 million yuan, down 2677.73% year-on-year.

OFilm officially started its operations in 2002 and was listed on the Shenzhen Stock Exchange in 2010. The company’s main products include optical image modules, optical lenses, and microelectronics all of which are widely used in smartphones, smart home appliances and VR/AR devices.

OFilm offered some reason for the poor financial performance in H1. First of all, affected by the termination of a purchasing relationship from overseas customers in the first quarter of 2021, the company’s product shipments related to those deals dropped significantly in the first half of 2022 year-on-year.

Secondly, due to the changes in the international trade environment, global epidemic, a slowdown in consumer demand, and a further restriction in chip supplies within a customer, some of OFilm’s shipments declined year-on-year. Some industry insiders have speculated that the specific overseas customer was Apple, while the customer with restriction of smartphone chips was Huawei.

SEE ALSO: OFilm’s Nanchang Subsidiary Removed From US Entity List

OFilm is also actively looking to change things up a little. At the end of April, the company decided to consolidate its IoT Ecological Division, which deals with smart door locks, webcams, robots and others. The Metaverse Division was also established to be responsible for the assembly and manufacturing of optical lenses, image modules, optical-mechanical modules in the VR/AR field.