OFILM and Wingtech Technology respectively issued announcements that the two parties have signed the “Acquisition Intention Agreement” and intend to purchase in cash the relevant business assets owned by OFILM and the supply of cameras to specific overseas customers. According to relevant sources, this particular customer is likely to be Apple.
The announcement of the two parties showed that on February 7, Wingtech Technology and OFILM signed the “Acquisition Intention Agreement.” Wingtech Technology intends to purchase by cash the relevant business assets owned by OFILM and the supply of cameras to specific overseas customers, specifically including the 100% equity of Guangzhou Delta Imaging Technology held by OFILM, and OFILM and its holding company in China and operating assets (including fixed assets (including production equipment, R&D equipment, testing equipment, etc.), intangible assets (including but not limited to) that are owned by overseas (except Delta) and related to the supply of cameras to specific overseas customers Patent, technical information, technical secrets, drawings, manufacturing methods, process flow, recipes, etc.), inventory, etc.)), the specific asset details and transaction amount shall be determined by the parties to the transaction in the formal acquisition agreement.
Guangzhou Delta Imaging Technology is the production base of the former Sony (China). in South China (Guangzhou, China). Its main business is the production and sales of micro cameras and related components. Sony’s South China production base was acquired by OFILM in 2017 and completed the delivery. It has the industry’s top camera module development and packaging technology, and has the qualifications and capabilities to supply the world’s first-class smartphone brand customers. It is precisely because of the acquisition of Sony’s South China production base that OFILM has entered Apple’s suppliers and became its main supplier of cameras.
Li Gang, an electronics analyst at Sinomarket Research Institute, said that cameras are the main technological direction in the future in the fields of mobile phones, IoT, and smart cars. Technological innovations such as high-end cameras, dual-cameras, and triple-cameras have brought huge and growing industrial opportunities. OFILM’s camera business is also the core and most valuable part of Apple’s China industrial chain. Its scarcity and importance are self-evident, and it can be said that it is the crown jewel of the entire Apple China industrial chain. It will take at least 2 years to become an Apple supplier. The acquisition of all assets of OFILM’s Apple business by Wingtech Technology means that Wingtech Technology has already obtained Apple’s supplier qualification and will soon become one of Apple’s main suppliers with the help of the new camera business One.
Since the news that OFILM will divest Apple’s related business units, there have been rumors that many companies such as Luxshare Precision, Lens Technology, and Lingyi Zhizhi are interested in bidding. The announcement by both parties also means that this high-quality asset will eventually go to Wingtech.
According to the announcement, through this acquisition, Wingtech will strategically expand its communications product integration business to upstream electronic components and build customer service capabilities across the industry chain. On the basis of comprehensively coordinating the development of the product integration business sector and the semiconductor business sector of Anshi, Wingtech can further extend to the upstream of the industrial chain through this acquisition, carry out the layout and integration of industrial vertical fields, and better grasp 5G , IoT, and the development opportunities for the rapid growth of demand in the field of smart cars promote the long-term sustainable growth of the performance of listed companies.