Swank's turnover declined by 3.5 percent to HK$98.7 million (€10.3m-$12.7m) for the six months ended June 30, but the net loss narrowed to HK$1.8 million (€188,000-$231,000) as against HK$9.8 million in the year-ago period. A small decrease in orders resulted in low capacity utilization, causing a lower gross margin of 14.4 percent, down from 15.8 percent.

?Sluggish? demand for lenses from the group's 50 percent owned associate, Dongguan Yueheng Optical, resulted in shared profit before tax of HK$300,000, as compared to HK$1.3 million. Swank continues to negotiate the repayment of a now overdue HK$25.5 million promissory note and HK$6.4 million in interest.

Meanwhile, Tam Ping Wah has resigned as a company director for ?personal reasons.? Swank said nothing other than to confirm that there was no disagreement between him and the rest of the board.