OFILM plans to transfer camera-related business assets to Wingtech Technology

On February 7, OFILM issued an announcement stating that the company plans to sign a "Letter of Intent to Acquire" with Wingtech Technology Co., Ltd. (hereinafter referred to as "Wingtech Technology") in Shanghai on February 7, 2021. The company plans to transfer (or sell) its business assets related to the supply of cameras to specific overseas customers to Wingtech Technology.

The announcement shows that the target assets specifically include 100% of the shares of Guangzhou Delta Imaging Technology Co., Ltd. (hereinafter referred to as "Guangzhou Delta") held by the company and the operating assets owned by the company and its holding companies in China and overseas (except Guangzhou Delta) related to the supply of cameras to specific overseas customers (including fixed assets (including production equipment, research and development equipment, testing equipment, etc.), intangible assets (including but not limited to patents, technical data, technical secrets, drawings, manufacturing methods, process flows, formulas, etc.), inventory, etc.).

It is worth noting that since the news that OFILM will divest its Apple-related business units, there have been rumors that Luxshare Precision, Lens Technology, Lingyi Intelligent Manufacturing and other companies are interested in bidding. The release of the announcement by both parties also means that this high-quality asset will eventually fall into the hands of Wingtech Technology.

Industry insiders said that since OFILM has been included in the "Entity List" of the United States, the subsequent development of its major American customers will be more or less affected. The sale of related assets will help OFILM improve its own financial situation and reduce its asset-liability ratio. Therefore, for OFILM, actively "slimming down" may be a strategic adjustment that kills two birds with one stone.

While selling related assets, OFILM will also increase its main business through private placement and continue to consolidate its position in the industry. In November last year, OFILM announced that it planned to issue a private placement of 6.8 billion yuan. The funds raised will be invested in high-pixel optical lenses, 3D optical depth sensors, and high-pixel micro camera modules. The scale of optical and optoelectronic production lines will be further expanded, the supply capacity of lens production capacity can be fully improved, and the competitiveness of core products will be enhanced.

OFILM stated that the signing of the letter of intent will help the company to closely focus on the development strategy of "focusing on the core, innovation-driven, consolidating the foundation, and moving forward steadily", focus more on core businesses such as optics and microelectronics in multiple fields such as consumer electronics and automotive, continue to optimize the company's internal resource allocation and business structure, increase the proportion of high value-added products, improve the company's overall operating efficiency and profitability, and promote the company's long-term development.