As an ex-subsidiary of OFILM, Guangzhou Delta may help Wingtech to enter Apple's supply line.
On April 12, 2021, Wingtech Technology announced its intention to join with Gree Group to acquire Guangzhou Delta, a subsidiary of OFILM, and establish Zhuhai Delta Corporation. Zhuhai Delta's registered capital will reach CNY 3 billion, of which Wingtech Technology contributes 2.1 billion in currency, accounting for 70% of the registered capital.
Founded in 1998, Guangzhou Delta mainly focuses on the production of camera modules. OFILM developed an efficient production line, formed a large professional team and finally entered the Apple industry chain with this business in 2017. Through the acquisition, Wingtech Technology will get a chance to enter Apple’s production line, while OFILM will acquire sufficient cashflow to hedge the loss from political events (i.e. being listed on the restriction list by the US), which is beneficial to both companies. After the joint merger, Wingtech Technology, if approved by Apple, will be able to re-obtain orders and maintain its status as a supplier. However, if it fails to get approval, the new company may face the risk of asset impairment, which will affect the overall performance of Wingtech.