Oppo distributor OMC Electronics, has shuffled their board of directors, out is $30 million dollar man Yuchen Hou, who still lists himself on his LinkedIn profile as Group Chief Executive of Oppo Australia, as well as Yunzhi Lin a former Oppo executive in the UK.

These two executives have been replaced by Yanfeng Zhao and Kevin Chai Lun Cho.

Earlier this year, ChannelNews revealed that Hou via an NSW registered Company Harmony United Pty Ltd loaned the Australian Oppo distributor $30M, despite the business losing money and facing a 24% fall in sales of smartphones in Australia.

$30M loan man Yuchen Hou quits Opoo distributor board

The business was registered at an apartment at 188A Abuklea Road, Eastwood NSW 2122.

Last month an application was made for a voluntary deregistration of Harmony United, it’s not known whether the $30M has been repaid.

OMC Electronics and linked business, OCPA Holdings Pty Ltd are riddled in debt and back in 2022 when the business last reported, sales of Oppo and Realme smartphones had fallen from $165.9 million in 2021 to $127.8 million in 2022 a fall of approximately 24%.

ChannelNews understands that sales have fallen further in 2023.

Current 2022 liabilities of the OMC Electronics business are listed at $66.67 million Vs $46.13 million in 2021.

OMC Electronics also has extensive borrowings, back in 2021 the Company listed borrowings from Singapore Company Long Shining Development Ltd of $13.3 million and a note in the last lot of financials lodged with the Australian Securities and Investment Commission claims that as of the 17th of February 2021, the company has entered a new loan agreement, Long Shining for $25M in US dollars and that the loan is secured and debt free.

According to OMC Electronics financials the business has $98M in liabilities with questions being raised by auditors as to whether they can continue as a ‘Going Concern’.

These same financials contained a statement by Zhiyuan Lian a Director at Wis the Companies auditors that “The Company incurred a net loss of $8,206,184 during the year ended 30 June 2022 and, as of that date, the Company’s liabilities exceeded its total assets by $48,047,202″.

He goes on to write” A material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern”.