OFILM chairman responded to growing Huawei supply chain orders

Chinese camera and fingerprint module maker – OFILM has been in discussion since the launch of the Huawei Mate 60 series and in a recent interview with Chinese media, its OFILM chairman, Cai Rongjun responded to a question about the growing Huawei supply chain orders.

Specifically, the OFILM chairman responded in two words “Stubbornly alive”, which shows the past issues that the company was facing up until the release of the sudden climb in orders supply from Huawei.

In September this year, OFILM entered the supply chain of Huawei and became a major supplier for the new Mate 60 series flagship. The supply chain of OFILM to Huawei includes rear cameras, front cameras, and fingerprint modules. Also, the single unit of the module costs around 500-600 yuan.

To ensure stable business, OFILM is working in its product supply line for optimum production required components.

Two dark Years

According to the information, OFILM used to be one of the most recognized supply chain members for Huawei and Apple. However the company had been facing severe downstream in business. It’s due to reduced orders from Huawei due to the sudden collapse in smartphone market share. On the other hand, Apple also removed OFILM from the supply chain in 2021.

In the same year, OFILM’s revenue dropped by 52.75% year-on-year, with a net profit loss of 2.625 billion yuan. In 2022, OFILM’s revenue dropped by 35.09% year-on-year, and its net profit loss expanded to 5.182 billion yuan.

Optical optoelectronics is OFILM’s main product, accounting for 72.78% of revenue in 2022. However, the revenue share dropped to 70.93% in the first half of this year. At the same time, the revenue share of smart car products has increased. In the first half of this year, Accounting for 7.66%.

The situation for the company gets even worse. In September 2022, many OFILM executives resigned including OFILM’s deputy general manager, securities affairs representative, and director and deputy general manager.

Aside from this, the return of Huawei in the smartphone market is a good sign for all of its suppliers including OFILM to rebound in the business.