On June 17, OFILM replied to the Shenzhen Stock Exchange’s annual report inquiry letter, explaining the expansion of the company’s losses and whether the fundamentals had undergone major changes. Oufeiguang responded that the main reason for the expansion of the company’s losses in 2021 is that due to the influence of staged factors, the company’s fundamentals, including terminal market demand, industry products and technologies, and the company’s core competitiveness, have not undergone major changes. In this regard, the company has fully reminded the operating risks.
In 2021, OFILM’s operating income is 22.844 billion yuan, and the net profit attributable to shareholders of the parent company is -2.625 billion yuan. The Shenzhen Stock Exchange requires OFILM to analyze in detail the reasons for the further expansion of the company’s losses. In response, OFILM responded to the inquiry letter saying that after comparing the data in 2020 and 2021, the main reason for the further expansion of the company’s losses in 2021 was the sharp decline in the revenue of specific foreign customers and H customers, which led to the expansion of the company’s operating losses.
In the reply, OFILM listed the main reasons for the company’s loss in 2021:
(1) Affected by the termination of the procurement relationship with specific foreign customers, the company and its related product sales revenue decreased by RMB 12,792,642,900 year-on-year, and at the same time assumed the fixed operating costs incurred by its related subsidiaries after the termination of the procurement relationship;
(2) Due to major changes in the international trade environment, the company’s H customer’s smartphone business was subject to restrictions such as chip supply cuts, resulting in a year-on-year decrease of 8,336,756,300 yuan in sales revenue for this customer;
(3) The company conducts a comprehensive inventory of various assets, conducts impairment tests, and makes provision for impairment of assets that may suffer impairment losses. The provision for impairment of various assets in this year is RMB 1,169,942,900;
(4) Based on the actual situation of the company, in order to revitalize the company’s idle assets and improve the efficiency of asset operation and use, the company disposed of the land use rights and workshops of some subsidiaries, and confirmed the disposal loss of 234.427 million yuan;
(5) The company compensated for the related asset impairment losses of the joint-stock company Anhui Jingzhuo Light Display Technology Co., Ltd. and its subsidiaries, with an amount of 196.1442 million yuan;
(6) The company’s related shareholding companies incurred operating losses during the reporting period, resulting in the company bearing the corresponding investment losses. The company recognized investment losses of 315.5112 million yuan in the relevant shareholding companies in accordance with the equity method;
(7) While developing core business, the company actively expands new business, and deploys optical optoelectronic business in new fields such as smart car, smart home, VR/AR, industrial, medical, and sports cameras. The large investment in research and development of new business has a certain impact on the profit during the reporting period.
It is worth noting that the Shenzhen Stock Exchange requires the company to explain the reasons for the sharp decline in foreign sales revenue, except for the termination of purchases by specific foreign customers.
Ou Feiguang said that the company will achieve foreign sales revenue of 5.556 billion yuan in 2021, a year-on-year decrease of 14.976 billion yuan. Among them, the sales revenue of specific foreign customers decreased by 12.793 billion yuan year-on-year, and the sales revenue of other customers decreased by 2.183 billion yuan year-on-year. The main reasons are as follows: 1. The main reason for the change of the receiving body of some products of some customers from foreign countries to domestic ones has affected the company’s foreign revenue by about 70%. billion. 2. Exchange rate fluctuations affected foreign income by about 400 million yuan. 3. Affected by factors such as the decline in downstream smartphone sales, lower configuration and intensified market competition, the company’s foreign revenue decreased by about 1.1 billion yuan.
Oufeiguang mentioned in the reply letter that the company’s fundamentals, including end market demand, industry products and technologies, and the company’s core competitiveness, have not undergone major changes.
In the reply letter, OFILM gave an analysis from four aspects: industry trends, the company’s core technology, business measures, and the risks that have been fully warned before.
(1) In the downstream market, industries such as consumer electronics, smart cars, and VR/AR still have a lot of room for growth in the future, and the periodic short-term fluctuations of the industry will not change the long-term positive trend;
(2) The key technologies of the industry have not undergone fundamental changes and have certain technical barriers, and the company’s core technologies are still at the leading level in the industry;
(3) The company is actively taking various operational measures to consolidate its leading position in the industry and ensure the company’s stable and continuous operation;
(4) After self-examination, from 2021 to the reply date of this inquiry letter, the company has fully reminded the relevant business risks in its regular reports and temporary announcements.
Oufeiguang’s 2021 annual report shows that the company’s main business is smartphones, smart cars and new fields. Its main business products include optical imaging modules, optical lenses, microelectronics and smart car-related products, which are widely used in smart phones, Consumer electronics and smart cars represented by smart home and smart VR/AR devices.
Oufeiguang mentioned in the reply letter that the basic market demand and key technologies of the above-mentioned related optical optoelectronic products have not undergone fundamental changes, and there are certain technical barriers. The company has been deeply involved in the field of optics and optoelectronics for many years, insists on guiding the industrialization and upgrading of technology with independent innovation, continues to invest in research and development, and continuously consolidates its leading position in the global optoelectronics industry. Up to now, the company’s relevant core technology is still at the leading level in the industry, with certain advanced nature, and has independent intellectual property rights. In 2021, the R&D investment will reach 1.784 billion yuan, accounting for 7.81% of the operating income. The layout areas involve smartphones, smart cars and new fields.
The downstream market space of the optical industry needs to be tapped, and the company’s core technology is still at the leading level in the industry. OFILM has taken multiple measures in parallel to ensure the company’s continuous and stable operation and consolidate its leading position in the industry. (Zhang Ke)Return to Sohu, see more
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