A Hong Kong logistics company finds itself embroiled in financial and reputational difficulties following its involvement in transporting allegedly counterfeit bottled water supplied to government offices by Xin Ding Xin Trading Co. (XDX).
The company estimates HK$700,000 in outstanding freight payments while grappling with unexpected damage to its business standing.
At their Yuen Long warehouse, a cargo pallet containing empty, unbranded water bottles was seen on Tuesday morning.
Company representative Lau confirmed these were remnants from a delivered batch of the controversial "Xin Le Guan Yin Shan" water. Approximately 35,000 bottles had been transported, with 2,600 remaining in inventory.
"We're victims here, yet we're being painted as accomplices," Lau expressed, emphasizing their lack of prior knowledge about the water's questionable authenticity.
Another staff member revealed unpaid invoices totaling HK$600,000 to HK$700,000, originally due on August 15, adding, "Reputation matters. Had we known, we wouldn't have handled this shipment. Now I'm worried we'll never get paid."
The logistics firm's troubles deepened when police conducted a Sunday (August 17) inspection at their Yuen Long facility.
Lau detailed how a Shenzhen-based customs broker named Choi had approached them on July 7 to arrange cross-border transportation. After meeting in Shenzhen the following day, they agreed to collect goods from Dongguan for Hong Kong delivery.
Lau stressed his limited contact with XDX representatives, having met only once with the director, his wife, another associate, and Choi. They carried on their conversation through a WeChat group established on July 13, with transportation commencing on July 22.
The company charged HK$14.5 per bottle for Hong Kong Island deliveries and HK$35 for outlying islands, with monthly payments due on the 15th.
Mounting challenges
With Choi now unreachable and payment information unavailable, the company faces compounding difficulties.
Another representative, also surnamed Lau, highlighted pressing concerns: accommodating recently hired staff, utilizing idle equipment, recovering outstanding payments, and explaining the situation to other clients.
