Labor Shortage Or Negative Impact Of Panyu Textile Factory

01382.HK announced that since the outbreak of the new coronavirus pneumonia, in order to prevent the spread of the epidemic, many provinces and municipalities in China have taken urgent public health measures and various actions, including restrictions on the date of resumption of production after the Lunar New Year holidays.

About three weeks after the closure of the Guangdong Panyu plant of the Pacific Textile Company, the production resumed in February 12, 2020 after the Chinese New Year holiday and the Guangzhou government's downtime. However, due to the suspension or limited service of transport facilities in some areas, some workers in the affected provinces, especially those outside Guangdong origin, could not return to Guangdong production units as planned, resulting in a decline in the production capacity of Panyu factories. It is expected that this will delay the resumption of the original production schedule of the Panyu plant and will delay the delivery of products in February 2020 and March. However, it is estimated that the administrative measures taken by the epidemic as a result of the shortage of labour are temporary.

In this special case, the Pacific Textile will try its best to fulfill its promised sales order and keep in touch with its customers to adjust the delivery schedule to minimize any negative economic impact on both sides.

Shutting down and temporarily below the original production level may have a negative impact on the short-term financial performance of Pacific textiles. The board of directors will continue to assess the impact of the epidemic on the group's financial performance and closely monitor the development of the epidemic and the risks and uncertainties faced by the group in this regard.