Mainland Headwear Holdings' profit and turnover fell sharply in the first half, struck by its loss of the US Major League Baseball (MLB) brand licence, strike action by US hockey players and Sino-US textiles trade disputes.
The Hong Kong-listed headwear maker posted a 12.4 per cent drop in turnover to $233.74 million, while net profit dropped 17.4 per cent to $35.96 million.
Founding chairman Ngan Hei-keung said: '2005 has been full of struggle for the company.
'The fall in turnover was mainly attributable to the loss of the MLB licence, the NHL (National Hockey League) strike for the past season and a delay in orders from major retail customers in the US.'
During the last hockey season, strike action by NHL players disrupted orders, but orders should resume later this year, said deputy chairman Pauline Ngan Po-ling.
The NHL strike and the loss of the MLB licence this year caused turnover in the company's trading business to drop 25 per cent to $99.7 million, resulting in a loss of $4.39 million.