BBK Electronics Corp, China’s largest smartphone manufacturer, has separated three of its major brands in India – Oppo, OnePlus, and Realme – into independent organisations, with revenues accounted for in their accounts, in an effort to reduce the likelihood of future government action against Chinese firms.
BBK Electronics Corp has delegated sales and distribution for OnePlus and Realme to their respective legal entities, OnePlus Technology India and Realme Mobile Telecommunications (India). Officials stated that Oppo Mobiles India, which previously handled sales and distribution for all three brands, will continue to offer its own brand.
In its most recent regulatory filings to the Registrar of Companies (RoC) in May, Oppo Mobiles India disclosed significant government proceedings against the company, including money frozen in bank accounts totaling Rs 2,082 crore.
According to the RoC filing, the company’s auditors have expressed worry that “material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”
Oppo Mobiles was previously under investigation by the government for suspected Rs 4,388 crore in customs duty fraud.
In the filings, the company also stated that it has received letters of intent from its parent company and its external commercial borrowing source to continue financing the firm in order for it to remain operating. These RoC filings were made in conjunction with the company’s fiscal report for 2021-22.
The company has filed no further RoC filings, including financial and auditor reports for FY23. Oppo Mobiles India, according to executives, is also changing its business approach. It will now sell to large shops and distributors directly, while the latter will sell to small stores.
Oppo Mobiles previously sold through businesses owned and controlled by Chinese in a variety of jurisdictions, who then sold to retailers. The company will continue to produce all three smartphone brands. In response to regulatory requirements, OnePlus and Realme are attempting to interact with Indian contract smartphone producers.
OnePlus Technology India began negotiating billing, sales, and distribution agreements with major retail chains and their distributors earlier this month, while Realme Mobile Telecommunications done so earlier. BBK Electronics Corp also owns the Vivo and iQoo smartphone brands, which are operated by Vivo Mobile India, a different company.
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