OFilm’s Nanchang Subsidiary Removed From US Entity List
OFilm, a manufacturer of camera modules, issued a statement early on Wednesday that its Nanchang subsidiary was removed from the United States Entity List. According to the statement, the US government’s End-User Review Committee (ERC) made a final decision on June 28, 2022, officially removing Nanchang O-Film Tech from the Entity List of the Bureau of Industry and Security (BIS) within the US Department of Commerce.
According to its official website, OFilm started operations in 2002 and was listed on the Shenzhen Stock Exchange in 2010. The company’s main business involves fields including smartphones and smart cars with optical image modules, optical lenses, microelectronics and smart car related products as its main offerings.
In 2016, OFilm entered Apple’s supply chain by acquiring Guangzhou Delta Imaging Company, which is mainly engaged in micro-camera modules and optical lenses. Two years later, on July 20, 2020, the updated Entity List showed that Nanchang O-Film Tech, a subsidiary of OFilm, was among them. According to relevant regulations, the US government can restrict the exports, imports or re-exports of these companies, which brings uncertainty as to whether or not OFilm can continue to supply Apple.
OFilm stated at that time that the decision made by the US Department of Commerce did not conform to objective reality, and called on the US to re-examine, looking forward to communicating with relevant the departments on this matter, hoping to get fair and just treatment.
On the evening of March 16, 2021, OFilm announced that it had recently received a notice from a specific overseas customer that they planned to terminate the purchasing relationship with the company and its subsidiaries, and it would no longer obtain existing business orders from the specific customer. It was widely interpreted by the wider market that OFilm had been excluded from Apple’s industrial chain.
SEE ALSO: Former Apple Supplier OFilm Anticipates Up to $10M in Q3 Losses
In terms of operating performance, in 2021, OFilm achieved operating income of 22.844 billion yuan ($3.4 billion), down 52.75% year-on-year. The net loss attributable to shareholders of listed companies was 2.625 billion yuan, and the loss increased by 34.99% year-on-year. In the first quarter of 2022, the operating income was 4.593 billion yuan, down 37.65% year-on-year. The net loss attributable to shareholders of listed companies was 186 million yuan, compared with a net profit of 77.2011 million yuan in the same period last year, down 341.33% year-on-year.
