OFILM was released from the "blacklist": it lost a huge order from Apple and its revenue was halved

In the early morning of June 29, OFILM released a statement on the removal of Nanchang OFILM Technology Co., Ltd. from the Entity List through its official WeChat public account.

It was mentioned that the U.S. government's End-User Review Committee (ERC) made a final decision on June 28, 2022 to officially remove Nanchang O-Film Technology Co., Ltd. from the Entity List of the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce.

OFILM welcomes this.

It is reported that OFILM had always been a stable supplier of Apple's lens business, but was suddenly removed from the "Apple supply chain" in March last year. The industry believes that this is related to the "Entity List".

Due to this incident, OFILM's revenue and market value both plummeted. According to the 2021 annual report, OFILM achieved operating income of 22.844 billion yuan in 2021, a year-on-year decrease of 52.75%, and a net loss attributable to shareholders of listed companies of 2.625 billion yuan, and the loss expanded by 34.99% year-on-year.

OFILM 2021 Annual Report Data

Regarding the halving of revenue and widening of net losses in 2021, the annual report explained that the impact of the termination of purchasing relationships with specific overseas customers led to a significant year-on-year decline in shipments of many of the company's products.

However, after being kicked out of the "Apple supply chain", OFILM quickly sold 100% of the shares of Guangzhou Delta Imaging Technology Co., Ltd. in the lens business and related equipment owned by Jiangxi Jingrun Optics Co., Ltd. to Wingtech Technology, and officially held an asset handover ceremony on May 10 last year.

At present, OFILM is also vigorously developing AR/VR and smart car businesses, which are considered to be the next stage of development.