Fujiko Industrial (00927) announced a letter on audio headphone quality issues, on December 20, 2023...
According to the Zhitong Finance App, Fujiko Industrial (00927) announced a letter about the quality of audio headsets. On December 20, 2023, the group received an updated claim letter from the customer regarding the quality of the audio headphone. The customer updated the total claim amount to approximately $14.4 million, including (i) the customer's alleged handling fee for the customer's return of approximately $1.9 million; (ii) the alleged material costs of the customer's return of approximately $5.2 million; and (iii) the alleged loss of profit of approximately $7.3 million. In the updated claim letter, the customer stated that since the relevant amounts for some of the claims have not yet been determined, the updated claim amounts may be adjusted. If a peaceful settlement is not reached, the client stated that it would submit formal arbitration proceedings against the group based on the updated claim letter.
Referring to the updated claim letter, the group has issued a separate claim letter to the supplier for quality issues alleged to be caused by battery defects; has been seeking legal advice from German lawyers on the customer's claim; and continues to actively engage with the customer and supplier with a view to resolving the quality issues peacefully and avoiding initiating any arbitration proceedings.
After the date of this announcement and on the date of this announcement, the Group continued to receive orders from the customer for the purchase of other products from the customer. Furthermore, the customer also continued to place orders for new audio headsets from the Group, and the services entrusted to the Group were not withdrawn due to quality issues.