(Yicai Global) Aug. 10 -- Shares of Kingfa Sci&Tech tumbled after China's largest modified plastics manufacturer said that it has canceled a USD975 million face mask order, which equals more than half of its net profit in 2019, because the US client failed to pay for the goods.

Kingfa's stock price [SHA: 600143] slid 6.5 percent to CNY16.25 (USD2.30) in the afternoon. The shares have more than doubled in value this year.

The KN95 face mask order has been terminated because the 40 percent advance payment is pending, the Guangzhou-based face mask newbie said in a statement yesterday, without disclosing the purchaser's name.

The buyer had not responded to the supplier's inquiry by Aug. 7 after the parties started negotiating in late June about how to proceed with the advance.

In mid-May, the Chinese company, which only started making face masks during the Covid-19 pandemic in March, said that it will deliver the goods within three months.

The global supply and demand, as well as the prices of masks, have changed amid the pandemic, Kingfa said, adding that did right to cancel the order, based on the contract.

Editor: Emmi Laine