Home-appliance maker Gzitic Hualing Holdings has defended its soundness despite concerns by the company's auditor about its viability.
Chairman Chen Xiaoshi said Hualing had returned to profitability last year, thanks to stringent cost controls and a new marketing strategy.
Auditor Arthur Andersen earlier raised concerns about Gzitic Hualing because of the uncertainy over the debt restructuring of its parent, Guangzhou International Trust and Investment Corp.
The auditor also cited Hualing's net deficiency in working capital as an uncertainty about the company's ability to continue as a going concern.
The company had accumulated losses of HK$138 million by the end of last year, while present liabilities were more than HK$160 million, the auditor said.