Kwong Hing International Holdings has warned it will lose orders if the United States-China textile negotiations drag on.
The textile producer also said it was unaware of whether it was still being investigated by the Independent Commission Against Corruption (ICAC) after the jailing of its former director in June.
If the Sino-US textile negotiations could not be resolved by next month, Kwong Hing's customers would face uncertainty, company secretary Jacky Fung Chi-ki said. 'The uncertainty will cause our customers to delay their orders.'
Kwong Hing produces knitted fabric and dyed yarn, which it sells to Hong Kong garment makers such as Luen Thai Holdings, which in turn produces garments for US brands including Liz Claiborne.
The company's business suffered in the second half of its last financial year to the end of March because the Sino-US textile dispute had caused US end-customers to delay orders.
Turnover fell 2.2 per cent to $528.5 million in the year to March, while net profit collapsed 96 per cent to $1.3 million, compounded by a $12 million cost from amortisation of textile quota entitlements.
