Oppo distributor OPCA Holdings who reported a massive $7.26 million dollar loss in 2023 has reported a turnaround with the business delivering a $795K profit in 2024.
Despite revenues falling from $87.3M in 2023 to $81M in 2024 the Company is still failing to reveal a timeframe for the paydown of the millions in loans to the business which appears to have tapped into interest free money.
The business which had a nett liability of $58,007,838 as of 2023 have also not said what the liability relates to or how the debt was incurred.
Directors of the business Thahn Dai Michael Chan, Chao Duan, and Kevin Chia Lun Cho claim that they have assessed the situation and considered that the consolidated entity will be able to continue as a going concern in Australia despite the fall in sales and the high debt the business is carrying.
In their latest Australian Securities and Investment Commission filing the shareholders of the company claim that they will “subordinate the amount owing from the consolidated entity in favour of other creditors” which appear to be intercompany operations.
They also claim that they will provide necessary finances to support paying off the debt when it falls due for minimum period of 12 months from October 2024.
ChannelNews understands that the massive loans could be part of the Companies tax structure with the owner of the debt believed to be a subsidiary that will “Not demand payment of any outstanding debt” from the Australian distributor of Oppo smartphones.
The latest financials also reveal that $30.7M has been loaned to the business by a Sydney based business Harmony Unity Pty Ltd.
Back in 2021 the Harmony United loan was $30.94M.
Recently Oppo moved to try and get back into the premium smartphone market with the bulk of their sales coming from value devices.
Total current liabilities of the business are listed as $87.1 million with borrowings making up $30.78M
The Company reported that sales of mobile handset and accessory was down to $79,660,446 from 86,942,807 in 2023.
Sales of smart home devices rose to $1,343,327 from 844,094 in 2023.
The loans borrowed from shareholders and directors are unsecured and interest free.
Last year we reported that one shareholder Chao Duan paid $20M for a new house on Sydney’s North Shore he is believed to be the son of the founder of Oppo.
Directors of the Company were last year paid $684,784 this was down on the prior year when they were paid $961,775.
OMC Electronics Pty Ltd is 100% owned by OMC Electronics.
