Chengdu Telecommunications Cable Co has described the loss of a significant contract as 'minimal'.
The H-share company had drawn criticism after delaying to reveal that the 60 million yuan (about HK$55.68 million) contract to supply optical fibre cables was rejected by the customer, Beijing-Kowloon Truck Project, because the product failed to meet specifications.
Last week, the stock exchange asked the company to explain why it had delayed to announce the failed contract.
Chengdu Cable company secretary Zhang Shumin said: 'The conclusion the directors reached was that the loss to the company as a result of the withdrawal was minimal.' He said the company could not give reasons for the contract withdrawal until it had made a detailed assessment.
He said the firm lost 60 million yuan in turnover last year due to the withdrawal.
It also incurred an extra 600,000 yuan last year to investigate the cause of the defects and 520,000 yuan to deliver the cables.
