Fujikao Industrial (00927.HK) provides further information on audio headsets and an updated claim letter

Gelonghui Finance ·  Jan 8 05:42

Gelonghui, January 8 | Fujigao Industrial (00927.HK) announced. The board of directors hereby provides further information on the audio headset and the updated claim letter. The Group's German lawyers have communicated with the client on the matters contained in the updated claim letter on behalf of the Group. The Group has been evaluating the amount of on-hand inventory relating to this audio headset. Based on the information currently available to the Group, as of December 31, 2023, the carrying value of the headset-related inventory was approximately HK$27,500,000 (unreviewed) (this amount was included in the Group's claim with the supplier). The customer is still calculating a number of costs and expenses associated with quality issues. It is anticipated that the customer may revise the updated claim amount, and the total loss claimed by the customer will exceed $20,000,000.

The Group has been actively engaging with (1) the customer and supplier to resolve quality issues peacefully and avoid initiating any arbitration proceedings; and (2) contacting the customer to dispose of the in-hand inventory related to the audio headset to prevent it from becoming obsolete. After the date of such announcements and on the date of this announcement, the Group directly received orders from this customer to purchase various other products from this customer.

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