RELATED: China Brand Oppo Company, Riddled With Debt, Losses & Loss of Sales – channelnews | Tech US News

[ad_1]

Chinese company Oppo, whose Australian business is plagued with losses, debt, and tens of millions of dollars in debt, has reported a 23% drop in revenue since June 30, 2022, with one of their companies OMC Electronics Pty Ltd reporting $8.2M in losses and other related businesses that sell smartphones lost $10.2M with questions being asked whether they have the future in Australia.

Both businesses have executives such as OPPO ANZ Group Chief Executive Officer and Director of Global Marketing and Brand Strategy at OPPO.

OMC Electronics has over $98M in liabilities with questions being raised by analysts as to whether they can continue as a ‘Going Concern’.

According to the documents registered with the Australian Securities and Investment Commission OMC Electronics claims that the sales of their smartphones fell from $165.9 million in 2021 to $127.8 million in 2022 a fall of approximately 24 %.

The current 2022 liability of the OMC Electronics business is listed at $66.67 million Vs $46.13 million in 2021.

OMC Electronics also has a lot of debt, back in 2021 the Company listed a loan from Singapore Company Long Shining Development Ltd of $13.3 million and a note in the recent financial statements listed with The Australian Securities and Investment Commission claims that from 17th February 2021, the company has entered into a new loan agreement, Long Shining for $25M in US dollars and that the loan is secured and without debt.

ChannelNews understands that the business has recently repaid these loans.

The business also has another loan listed in their books as ‘An outstanding loan’ of $30.49 million from a Sydney based company called Harmony Unity Pty Ltd.

The investigation of ASIC shows that the director of this Company is Yuchen Hou.

Address: 188A Abuklea Road, Eastwood NSW 2122

Yuchen Hou the CEO of Harmony United which loaned $30M to Oppo to run the business. He is also the CEO of Oppo Australia.

Yuchen (Marvin) Hou is the Chairman of the Board of Oppo ANZ, we contacted him to ask if there is interest paid on loans and why he is lending millions to the company he is CEO.

In 2021 OMC Electronics listed the loan from Harmony Unity at $28.43M, now it has increased to $30.94.

A notice in the ASIC lodged OMC Electronics financial report has a statement from Zhiyuan Lian the Director of Wis Company’s auditors that “The Company had a loss of $8,206,184 during the year ending on 30 June 2022 and, since that date, the Company’s Liabilities have exceeded its total assets by $48,047,202”.

He continued to write “One material uncertainty exists that could cast doubt on the Company’s ability to continue as a going concern.”

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

Michael Tran was previously the Managing Director of Oppo Australia, now he has listed himself as the Global Marketing Director.

Tran who was not described as the Director of Global Marketing and Brand Strategy at OPPO.

The total shortfall in equity is listed at $50.74 million.

In 2022 OMC Electronics spent $8.36M on marketing and advertising.

The total debt of this Company is listed at $98.4 million.

Questions were also raised about another related company called OCPA Holdings Pty Ltd.

This transaction loaned OMC Electronics $1.8M.

This business has the same manager as OMC Electronics. As of June 30th, 2022, this business reported a loss of $10.2 million Vs a loss of $5.73M in 2021.

This business that also claims they sell smartphones claims revenue of $132M Vs $165M in 2021.

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

The deficit was listed at $50.7M.

A notice in the accounts of this business said that the Directors of OCPA Holdings have evaluated the financial situation of the business and decided that the company will be able to connect more and more.

The owner of OCPA Holdings Pty Ltd has confirmed that they will “allow” the money owed by OCPA Holdings Pty Ltd in favor of other creditors and will provide necessary financial support to OCPA Holdings Pty Ltd to ensure that it is able to pay debts when they fall. because

The combined organization will manage the budget of the business and support spending in the next 12 months.

The business that is ‘A seller of smartphones’ for the Australian market said that they expect that “sales (smartphones) are … expected to increase.”

Analysts have cited a slowdown in the smartphone market with brands such as Apple and Samsung already cutting back on 2023 production.

Oppo worldwide is owned by BBK Electronics which is exploring in many countries including India.
In Australia they sell Oppo, Vivo and Realme smartphones.

Recently, two of its brands – Oppo and Vivo – have come under the scrutiny of the tax authorities in India with questions now being raised about whether the local business should be investigated by ASIC and the Australian Tax Office.

Oppo worldwide is owned by BBK Electotonics which is exploring in many countries including India. In Australia they sell Oppo, Vivo and Realme smartphones.

Recently the Indian Commissioner of Police (ED) claimed that the Indian arm of Vivo had sent billions of dollars “illegally” to China in order to avoid paying taxes in India.

This, according to ED is half of Vivo’s turnover in India.

A few days later, the Directorate of Financial Investigation (DRI) discovered customs evasion by Oppo Mobiles India Private Limited.

Some observers have suggested that local operations should be investigated by ASIC and the Australian Tax Office in Australia.

ChannelNews and 4Square Media are not aware of any violations by Companies connected to the operation of Oppo in Australia.

We have reached out to Michael Tran of Oppo for comment, we are awaiting a response.

[ad_2]

Source link

Please disable your adblocker or whitelist this site!