A Chinese manufacturer of athletic footwear, Kingmaker, reported a drop in its gross margin of 4.7 percentage points to just 6.9 percent for its first fiscal half ended on Sept. 30 because of smaller orders and their relocation to Vietnamese or Cambodian factories not affected by the U.S. tariffs on imports from China. Sales fell by 16 percent to 541.2 billion Hong Kong dollars (€62.3m-$69.1m) as the number of pairs sold declined by 11.9 percent and average selling prices dropped by 5.5 percent. The company still ended up with net income of HK$ 1.96 million (€226,000-$251,000) for the period, but excluding big extraordinary gains, it had a net loss of HK$ 32.4 million (€3.7m-$4.1m) against a profit of HK$38.3 million in the year-ago period. Kingmaker said it plans to lower capacities in view of the U.S.-China trade war, Brexit and the social unrest in Hong Kong.