Apple: Stop trading with O-FILM: US entity list
-China’s “European light group” is a big blow-
European group (O-FILM):
A major European group of electronic components for camera modules for smartphones.
On July 12, it announced that its business performance would deteriorate in the first half of 2021 (January to June), with net profit of 32 million to 48 million yuan (544,640,000 to 816,960,000 yen).
This is a large decrease of about 90% compared to the same period of the previous year.
2021 1Q financial results:
In the first quarter of 2021, it posted a net profit of 77.2 million yuan (1.313.94 million yen).
2021 2Q financial results:
However, in the first half of 2021, the business forecast fell into the red.
Net loss of 29.2 million to 45.2 million yuan (496.98 million to 769.3 million yen).
Main causes of poor business performance:
The main reason for Ofilm’s significant deterioration in business performance was the loss of orders for camera modules that it had supplied to Apple in the United States.
Lost from Apple:
In 2020, sales to Apple amounted to 30% of total sales, 14.5 billion yuan (246.8 billion yen).
Apple was Ofilm’s biggest customer.
Therefore, the company is famous as a representative “Apple-related stock” in the stock market.
US Entity List:
July 2020 A subsidiary of Ofilm was added to the US Government’s entity list.
After that, the business relationship with Apple went dark.
“Financial New” China Biz & Tech | Toyo Keizai Online