Shenzhen Sang Fei Consumer Communication, a subsidiary of China Electronic Corp, hopes to know the future of its lucrative tie-up with Philips International by the end of this year.
Sang Fei has been the exclusive supplier of Philips' mobile phones globally since 1997, but chairman Hua Longxing says it is too early to tell what will happen when their agreement expires in June next year.
'It is not for small companies [like us] to decide, but we will try our best to collaborate,' he said.
A mobile-phone producer jointly owned 75 per cent by China Electronic Corp and the remainder by Philips, Sang Fei saw sales of Philips mobile phones account for more than 90 per cent of turnover in the past three years.
Philips has also been the sole supplier of raw materials to Sang Fei.
'It is not completely certain that we will remain partners,' Mr Hua said. 'We will have to see the [bigger investment picture]. By the fourth quarter [this year] we shall know.'
In the past six months, sales of Philips mobile phones accounted for less than 90 per cent of revenue, according to senior financial controller Jeff Wong Po-chung.