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Production suspensions pulled down the shares of Shenzhou International Group, a supplier of global brands such as Nike, Uniqlo, and Adidas, 7.9 percent at the Hong Kong Stock Exchange, slicing $760 million. from the fortune of its chairman, Ma Jianrong.
Covid disruptions led to production suspensions in the mainland city where Shenzhou is headquartered.
Shenzhou announced that 10 Covid cases have been discovered in a Ningbo city district, causing local authorities to start “large-scale nucleic acid testing work” in the affected area.
The group said it is actively cooperating with the lockdown and isolation measures and expects some of the production sites in the Beilun district, Ningbo will be affected by a short-term production suspension.
Shenzhou added that it will actively evaluate and assess the impact of the epidemic on its operations and make further announcements concerning lockdown measures.
Last year, Shenzhou managed to avoid heavy fallout from Covid-19 disruptions at its Southeast Asia plants with help from capacity at home in China.
