Apple's Chinese supplier denies being removed from supply chain

Source: Global Times Published: 2020/9/1 20:28:40

An Apple store in Chengdu, Southwest China's Sichuan Province. Photo: IC

The share of Chinese smartphone component maker Ofilm had a roller coaster ride and ended 6.61 percent lower on Tuesday, after market rumors emerged in the morning claiming that the firm has been kicked out of the supply chain of Apple and the company denied it swiftly in the afternoon.

The share of Ofilm once fell by the daily 10 percent limit at 17.02 yuan on Tuesday morning, with the market capitalization evaporating by over 5 billion yuan. The slump came after news reports claimed that the component supplier has been removed from Apple's suppliers' list. 

Oflim supplies iPad touch control and display component to Apple, along with General Interface Solution Business Group and Taiwan-based TPK Holding Co. Some also speculate that part of the orders Oflim received will be diverted to another Apple supplier China-based Lens Technology.

In response, Ofilm issued a statement in the noon, denying it has been removed from the supply chain of a "big US client." The company's share bounced back in the noon and ended at 17.66 yuan, 6.61 percent lower than Tuesday's opening.

"We have been providing products and services for a big US client. Our cooperation with US customers has been going well and orders are very stable," reads the statement. The company added that as such rumors may mislead investors and impact normal market order, the company strongly condemns the publisher of such a report and reserves the right to pursue legal action.  

In July, a subsidiary of Ofilm was added to the "entity list" of US Bureau of Industry and Security. 

In the first half of 2020, Ofilm's net profit grew 2,290.3 percent year-on-year to 502 million yuan. Revenue from non-Android image module product grew 95.95 percent to 3.673 billion yuan year-on-year in the first six months. 

Posted in: COMPANIES

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