Unsatisfied customers file S$103m product claims vs Asia Fashion Holdings subsidiary

Products allegedly fell short of requirements.

In a disclosure to the Singapore Exchange, the Board of Directors of Asia Fashion Holdings Limited announced that the Company's wholly-owned subsidiary, Fujian Qianfeng Textile Technology Co., Ltd has received claims amounting to RMB 517,034,640 (equivalent to S$103,406,928) from customers for delivered products that allegedly failed to meet customers' specified requirements.

The Company said these claims were only discovered recently as they were not brought to the attention of Management by the sales and customer representatives responsible then and the latter have since left the subsidiary.

Management is currently seeking legal advice on the validity of such claims and will keep shareholders abreast of the outcome. The Board will release further announcements as and when there are any developments on the above.