Yi Wang, the managing director of Oppo Mobiles in India, has reportedly stepped down from the company. The Chinese smartphone maker informed Bombay Stock Exchange (BSE) in a regulatory filing that Wang’s resignation has been accepted by the company board. He would be relieved from his duties as MD on November 30, 2018.
The exit of Wang comes at a time when the company is suffering from increased losses in the country. Oppo‘s net loss expanded to Rs 3.58 billion in 2017-18 from Rs 0.42 billion a year ago, reveal documents filed with the Registrar of Companies (RoC). Business Standard further reports that analysts had pointed towards large sum spent by the company on advertisements and promotions in the country as the key reason for its widening losses.
Oppo Mobiles India spent a whopping Rs 10.8 billion last year to acquire a five-year contract with the Board of Control for Cricket in India (BCCI) for team India’s jersey rights. Since its entry, both Oppo and its sister brand Vivo have spent millions of rupees to expand their retail presence into the hinterlands of the country.
The move has helped them increase their sales and according to Counterpoint Research, Vivo and Oppo were the third and fifth largest smartphone brands respectively at the end of third quarter. The research firm says that Vivo and Oppo have a market share of 10 percent and eight percent respectively in India. It also noted that these brands reached their highest ever shipments in a single quarter.
According to filing with the Registrar of Companies (RoC), Oppo plans to borrow Rs 35 billion in the form of external commercial borrowings to support business operations in the country. In a statement, Oppo Mobiles India said that “it has been mutually decided that Yi Wang would step down”.
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Wang was elevated to the role of MD three years ago, and has pushed the company into the league of top five smartphone players. He is also responsible for pushing the top-line beyond the Rs 100 billion mark in 2017-18 and increasing its market share from 2 percent in late 2015 to over 7 percent in 2018. The report by Business Standard notes that Vivo is also making losses and their parent company, BBK Electronics, reported a loss of Rs 1.2 billion in 2017-18, up from Rs 1.13 billion loss reported the previous year.