O-Film Denies Benefit Transfers to Xin Feiguang and Xin Sikao, Files Police Report
O-Film issued a clarification on the Shenzhen Stock Exchange on August 9, denying media reports that its actual controller Cai Rongjun set up off-balance-sheet companies to strip listed-company assets. The company said it has not transferred benefits to Xin Feiguang or Xin Sikao, that the two firms operate independently with no personnel overlap or opaque cost allocation, and that related-party transactions were conducted at fair prices. O-Film noted its only related-party transaction with Xin Feiguang in the past three years was a small factory rental in 2023, and that purchases from Xin Sikao were fairly priced. The company has filed a police report and taken legal action over the reports.
On August 9, O-Film issued a clarification announcement on the Shenzhen Stock Exchange in response to an earlier media report titled "O-Film Under Whistleblower Complaint! Actual Controller Cai Rongjun Accused of Setting Up Off-Balance-Sheet Companies to Strip Listed Company Assets." The company stated unequivocally that it has not transferred benefits to Xin Feiguang or Xin Sikao, and emphasized that the two companies are independent in research and development investment and operational management, with no personnel overlap or opaque cost allocation issues.
The announcement further stated that the company has not produced or OEM-manufactured the optical module components, glass bridges, precision structural parts and other products described in the report, and that it has not artificially lowered component prices or shifted profits to Xin Feiguang. Over the past three years, the company's only related-party transaction with Xin Feiguang was a factory rental in 2023 involving a small amount, with no other forms of related-party transactions. Related-party transactions with Xin Sikao mainly involved the purchase of motor products at fair prices, with no benefit transfers, uncompensated technology transfers, cost shifting or fund occupation. In response to the inaccurate reports, the company has filed a police report and taken necessary legal and countermeasures.
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