On September 27, OFilm, a former Apple supplier and a manufacturer of camera modules, released a notice stating that Cai Gaoxiao, director and deputy general manager of the company, resigned for personal reasons. Cai is under residential surveillance by public security authorities in Taizhou, Zhejiang province.
OFilm said that Cai’s case has nothing to do with the company, and that the matter will not have an adverse impact on the company’s daily production. The Beijing Business Daily quoted an economist as saying that when people are under residential surveillance, they may have been involved in illegal activities.
Cai is a shareholder of Glory United (China) Limited and indirectly holds about 284 million shares of OFilm, accounting for about 8.73% of the company. In addition, he is the brother of Cai Rongjun, the actual controller of OFilm.
Cai Gaoxiao himself has been working for OFilm for 20 years. According to OFilm’s financial report, Cai has served as deputy general manager and director of the company since 2002. In 2021, he received a salary of 1.28 million yuan ($176,907) from OFilm.
As a company that has been engaged in the field of optical and optoelectronics for 20 years, OFilm provides products for smartphones, smart cars and others. The company’s financial decline came after it ended its purchasing relationship with Apple. In 2021 and the first half of 2022, the company saw its net income fall to -2.625 billion yuan and -874 million yuan, respectively. The weak performance and falling share price coincided with the beginning of management turmoil. In September, the company’s vice president, Yang Xiaobo, and its securities representative, Bi Ran, resigned.
It is worth mentioning that on September 26, another listed company, Doti Micro, announced that it had received a notice from the family of Zhang Xiaobo, secretary of the board of directors and chief financial officer, on September 23. Zhang was under residential surveillance by public security authorities in Taizhou, Zhejiang province. On September 28, Doti Micro said Zhang is suspected of the crime of manipulating the securities market.
Doti Micro is engaged in the research and development of precision photoelectric film components. Its main products are camera filters and optical communication components. OFilm is its largest customer. Although both sides said that the cases have nothing to do with them, the coincidence has inevitably triggered speculation.
From 2018 to 2020, the sales revenue of Doti Micro from OFilm was 36 million yuan, 107 million yuan, and 183 million yuan respectively, accounting for 26.49%, 37.76%, and 39.99%, in each of those years. The scale of business exchanges between the two companies has shown an increase year by year.