Sitoy Group Holdings (01023.HK) issued a profit warning, expecting a loss for the six months ending in December compared to a profit of 53.55 million yuan in the same period last year. The termination of the Cole Haan business will result in a one-time significant loss, mainly due to the write-off of certain inventory and shop capital expenditures resulting in losses, compensation for terminating related employee contracts, and final payments to Cole Haan.

The company has terminated the distribution and trademark license agreement related to 'COLE HAAN'. The company is required to pay 7 million US dollars to Cole Haan to settle all claims that Cole Haan may potentially make.