Oppo logo

Exclusive: Chinese brand companies Oppo, riddled with debts, losses and sales decline – channelNews

Chinese smartphone company Oppo, whose Australian operations are suffering from losses, debts and loans worth tens of millions of dollars, reported a 23% drop in revenue as of June 30, 2022, as one of its companies, OMC Electronics Pty Ltd, reported $8.2 million. In losses, the other related business selling smartphones lost $10.2 million, with questions being raised about whether they have a future in Australia.

Both companies have joint directors including OPPO Group CEO ANZ and OPPO’s Director of Global Marketing and Brand Strategy.

OMC Electronics has more than $98 million in liabilities with auditors asking questions about whether they can continue to be a “going concern.”

According to filings with the Australian Securities and Investment Commission, OMC Electronics claims sales of its smartphones fell from $165.9 million in 2021 to $127.8 million in 2022, a decrease of nearly 24%.

Current liabilities for 2022 of OMC Electronics are listed at $66.67 million as compared to $46.13 million in 2021.

OMC Electronics also has extensive loans.In 2021, the company listed loans from Singaporean company Long Shining Development Ltd of $13.3 million. A note in financial statements recently filed with the Australian Securities and Investment Commission alleges that as of February 17, 2021, the company entered into A new loan agreement, Long Shining for $25 million USD, and that the loan is secured and debt free.

ChannelNews understands that the company recently paid off that loan.

The company also has another loan on its books listed as a “non-current loan payable” of $30.49 million from a Sydney-based company called Harmony Unity Pty Ltd.

An ASIC search reveals that the director of this company is Yuchen Hou.

The company is registered at Flat at 188A Apoclea Road, Eastwood NSW 2122.

Oppo CEO Yuchen Hou

Yuchen Hou is the only director of Harmony United to have loaned $30 million to Oppo’s operating company. He is also the CEO of Oppo Australia.

Yuchen (Marvin) Hou is the CEO of Oppo ANZ Group, and we contacted him to ask if interest is paid on the loan and why he is lending millions to a company where he is CEO.

In 2021, OMC Electronics listed a loan from Harmony Unity of $28.43 million, and it has now risen to $30.94.

A note in the financial statements of OMC Electronics provided by ASIC contains a statement by Zhiyuan Lian, a director at Wis the Companies, that “the company incurred a net loss of $8,206,184 during the year ending June 30, 2022, and as of To date, the company’s liabilities have exceeded its total assets by $48,047,202.

He went on to write, “There is a material doubt that may cast doubt on the Company’s ability to continue as a going concern.”

The principals of OPC Electronics are Yuchen Hou, Chao Duan, Yanfeng Zhao Yunzhi Lin, and Thanh Dai M. Tran (Michael Tran) as he likes to be called.

Oppo Michael Tran

Michael Tran, former Managing Director of Oppo Australia, now lists himself as Global Marketing Director.

Tran, who is not described, is the Director of Global Marketing and Brand Strategy at OPPO.

The total deficit in shareholders’ equity was recorded at $50.74 million.

In 2022, OMC Electronics spent $8.36 million on marketing and promotions.

The total liabilities of this company are listed at $98.4 million.

Questions have also been raised about another interconnected company called OCPA Holdings Pty Ltd.

This company lent OMC Electronics $1.8 million.

This business has the same managers as OMC Electronics. As of June 30, 2022, this company posted a loss of $10.2 million versus a loss of $5.73 million in 2021.

This company that also claims to sell smartphones claims revenue of $132 million versus $165 million in 2021.oppo hq

The liability of this business is listed at $98.93 million as of June 30, 2022.

Accumulated losses are included at $50.7 million.

A note in the accounts of this business claims that the directors of OCPA Holdings have assessed the financial condition of the business and have judged that the business will be able to continue as a going concern.

The shareholder of OCPA Holdings Pty Ltd has confirmed that they will “adjust” the amount owed by OCPA Holdings Pty Ltd in favor of other creditors and will provide the necessary financial support to OCPA Holdings Pty Ltd to ensure that it is able to repay the debt when it falls. because of.

The consolidated entity will control the budget for marketing and promotional expenditures for the next 12 months.

The company which is a “smartphone supplier” to the Australian market claims to expect that “(smartphone) sales… are expected to increase gradually.”

Analysts are turning a downturn in the smartphone market with brands like Apple and Samsung already cutting back on 2023 production.

Oppo globally is owned by BBK Electronics who are under investigation in several countries including India.OPPO Reno 5G Smartphone Launched
In Australia they sell Oppo, Vivo and Realme smartphones.

Recently, two of its brands – Oppo and Vivo – came under scrutiny by the tax authorities in India with questions now being raised as to whether the local operation should be investigated by ASIC and the Australian Taxation Office.

Oppo is globally owned by BBK Electotonics who are under investigation in many countries including India. In Australia they sell Oppo, Vivo and Realme smartphones.

The Indian Enforcement Department (ED) recently alleged that the Indian arm of Vivo had “illegally” sent millions of dollars to China in order to avoid paying taxes in India.

This, according to ED was half of Vivo’s sales volume in India.

A few days later, the Directorate of Revenue Intelligence (DRI) detected duty evasion by Oppo Mobiles India Private Limited.

Some observers claim that the domestic operation should be subject to investigation by ASIC and the Australian Taxation Office in Australia.

ChannelNews and 4Square Media are not aware of any illegal activities by companies associated with Oppo’s operations in Australia.

We’ve reached out to Michael Tran at Oppo for comment, and we’re still waiting for a response.