Tens of thousands of Vivo smartphones manufacture by Chinese Company BBK Electronics that also owns Oppo and the struggling Realme brand have been seized by Indian authorities, the phones were bound for several markets including Australia, Authorities have also raided the offices of the Oppo linked Company claiming the business is involved in money laundering.

The drama unfolded when the Indian Government recently stepped in when Vivo tried to export 27,000 smartphones claiming that the pricing and value on the invoices were dodgy and “not the true value of the devices”.

Allegations have also been made that by India’s revenue intelligence unit, which is a branch of the Country’s Finance Ministry that the Oppo business has been engaging in money laundering, a claim that has yet to be proven in court.

Earlier the offices of Vivo were raided by authorities.In Australia retailers have expressed concerns as to the viability of the local Oppo business and its operating Companies that have been revealed as having high debts, with their own auditors expressing concerns due to falling sales, high borrowing, and mounting losses.

Questions have also been raised since our last story as to whether the Chinese smartphone manufacturer, is operating as a subsidiary of Chinese Company BBK Electronics, or via a distributor.

Financials recently lodged with the Australian Securities & Investment Commission revealed that the local business is operated via inter linked Companies OMC Electronics and OCPA Holdings.
See original story here.

Recently Zhiyuan Lian a Director at Wis the Companies auditors claimed in the ASIC documents that “The Company (OMC Electronics) 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.”

Sales of Oppo and Vivo smartphones have plummeted in Australia from $165.9 million in 2021 to $127.8 million in 2022 a fall of approximately 24%.

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

The question now is whether Australian authorities are set to investigate the two Oppo linked Companies who are refusing to answer questions about their borrowings and above all whether they are a viable business going forward due to falling sales and higher borrowings in 2022.

Yucken Hou (seen above) who describes himself as OPPO ANZ – Group Chief Executive Officer is currently a sole director of an Eastwood NSW based business called Harmony United Pty Ltd.

This business that operates from a private five bedroom house in a residential neighbourhood, appears to be in the loan business.

In 2021 OMC Electronics listed a loan from Harmony Unity of $28.43M, this has now risen to $30.94.

Yucken Hou has not explained his financial position or where the money came from that allowed him to loan large sums of money  to the distributors of Oppo and Vivo smartphones in Australia.

In the latest move the Indian Government moved on a shipment of Vivo smartphones being held at the new Deli airport.

India’s revenue intelligence unit initiated the raid over an alleged mis-declaration of the smartphones, the shipment was worth nearly $15 million wholesale.

Recently India’s anti-smuggling agency claimed that the BBK Owned Vivo in India had evaded customs duty of over $280 million on products, this came a month after the country’s anti-money laundering agency raided the domestic offices of the Chinese company.

In Australia questions have also been raised about the operations OCPA Holdings Pty Ltd which have the same directors as OMC Electronics.

This business loaned OMC Electronics $1.8M last year.

As Of June 30th, 2022, this business reported a loss of $10.2 million dollars Vs a loss of $5.73M in 2021.

This business also claims they sell smartphones and have revenues of $132M Vs $165M in 2021.

The liability of this business is listed at $98.93M as of June 30th, 2022.

ChannelNews have asked directors of the entities to respond to questions, at this stage neither Company has responded.