SHANGHAI (Reuters) – China’s OFilm Group Co Ltd, a maker of camera modules, told investors it received a notification from a “particular overseas client” saying it would cut its business ties.
“The impact of this specific customer order change on the company’s operations and performance is still under evaluation, and there is considerable uncertainty,” the company wrote in a statement, without naming the customer.
According to OFilm, the customer contributed 22.51% of its operating income in 2019.
OFilm is known as a supplier of camera modules for Apple Inc, which used them in its line of iPhone smartphones.
Apple did not immediately respond to a request for commment. OFilm could not be reached outside of working business hours.
In July 2020, the Trump administration placed OFilm on an entity list of 11 companies barring them from receiving U.S.-origin goods and services.
The administration alleged that the companies on the list were implicated in human rights violations in China’s western Xinjiang region.
In November, Chinese state-media reported that OFilm was preparing to apply to the U.S. Department of Commerce to have itself removed from the list.
Earlier this year, the company announced it would intend sell off four of its subdivisions.
(Reporting by Josh Horwitz, editing by Louise Heavens)
