Zhitong Finance App News, Fujikao Industrial (00927) issued an announcement. 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$27.5 million (unreviewed) (this amount was included in the Group's claim with the supplier). The customer is still calculating a number of costs and expenses related to 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 million. The Group has been actively contacting the customer and supplier to resolve quality issues peacefully and avoid initiating any arbitration proceedings; and the customer has contacted the customer to dispose of the existing 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.
Based on the information currently available to the Group, considering that neither the claim amount nor the updated claim amount has been verified and confirmed; and that the Group has not reached a formal final agreement with the customer and supplier to resolve the quality issue as of the date of this announcement, the exact impact of the quality issue on the Group's financial situation and business performance is yet to be assessed by the Company. The company will continue to actively engage with this customer and supplier, and publish separate announcements in due course to inform the company's shareholders and investors of any significant developments on related matters.