Hingtex Holdings Limited provided earnings guidance for the year 31 December 2019. The Group is expected to report a decrease of over 90% in its net profit for the year ended 31 December 2019 (the "Financial Year 2019''), as compared with its financial results for the year ended 31 December 2018. Based on the relevant information currently available to the Board, the Board considers such expected decrease in net profit for the Financial Year 2019 is mainly due to (a) the delay of denim fabric shipments to the Group's garment manufacturing customers as requested by the U.S. brand owners, who use the Group's denim fabric in their products. As a result of the worsened Sino-U.S. trade war during 2019, additional U.S. import tariffs have been imposed on denim garments manufactured in the PRC. Aiming to minimise the impact arising out of the aforementioned tariffs, the U.S. brand owners requested the Group to hold off deliveries of denim fabric as they were in the process of engaging qualified garment manufacturers located outside the PRC; and (b) the undertaking of denim fabric orders at competitive selling prices and lower profit margin by the Group in order to optimise production capacity utilisation in light of the delay in denim fabric shipments as mentioned above.