Nien Hsing Textile Co., Ltd. announced that Houlong Denim Factory will fully suspend the operation after existing orders are digested. In accordance with the law, the Company will also notify comptent authorities and offer employees severance pay. (1) The price of cotton, the main raw material of denim fabrics, fluctuates violently.

(2) Houlong Denim Factory is facing serious labor shortage and difficult to recruit workers. (3) Global inflation suppresses consumer demand, causing serious order shrinkage.