After being abandoned by Apple, OFILM wants to rely on the “Metaverse” to save herself

The “Metaverse” is still far from an outbreak, and for Ou Feiguang, the long waiting time will be even darker and more difficult.

Text | Yuan Silai

Editor | Su Jianxun

On April 26, OFILM officially announced the establishment of Metaverse Division and IoT Ecology Division. The former focuses on optical lenses, imaging modules, optical-mechanical modules, and complete machine assembly and manufacturing in the VR/AR field, while the latter covers related products such as smart door locks, IP cameras (IPCs), and robots.

Oufeiguang said that its VR/AR projects are already under fixed-point development, and some projects are mass-produced, and customers and partners have not yet been announced.

On the eve of the earnings report, OFILM hopes to release more optimistic signals. But it may be difficult to make up for the poor financial report. According to Oufeiguang’s 2021 annual performance forecast, it is expected that the net profit attributable to the parent will lose 1.9-2.7 billion yuan. No matter how busy the new industries such as automobiles, Metaverse, and IoT are, it is difficult to save OFILM in the short term, and instead, it will continue to swallow up R&D funds.

OFILM has a hard time recovering from the shock of losing Apple. In 2020, their net profit loss attributable to the parent has reached 1.945 billion, and the loss in 2021 has not improved. 

In 2020, 30% of OFILM’s revenue comes from Apple, and the gross profit is only about 8%. Relying on Apple’s huge order volume, OFILM still has stable profits. It is precisely because of its entry into the Apple supply chain, which is known for its demanding requirements, that OFILM has received orders from major Android customers such as Xiaomi.

Over-reliance on Apple’s single customer is a common problem for all fruit chain companies. The fragile halo shattered after Apple announced the termination of the cooperation, and the market value of OFILM is only one-third of that in July 2020.

The turning step came a little late. Their profits have shrunk dramatically, and new businesses need more capital.According to OFILM’s financial report, its R&D investment in the third quarter of 2021 increased by 81.47%. While still in the fruit chain, OFILM may be able to bear this cost, but now it will be another burden.

The fruit chain is trying to get rid of its dependence on Apple, and Goertek shares have been relatively successful.According to the 2021 annual report, Goertek shares, including VR, AR, wearable devices and other smart hardware revenue, has reached 32.8 billion, accounting for 40% of the revenue. While Apple remains the lion’s share of revenue, Goertek has bought time to pivot.

The “Metaverse” is still far from an outbreak, and for Ou Feiguang, the long waiting time will be even darker and more difficult.

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