Lee & Man Handbags (01488) said its net profit for the six months ended 30 June 2015 dropped 70.7% year-on-year to HK$6.17 million.
Earnings per share were HK0.7 cent.
The revenue was HK$327 million, a decrease of 15.2% from a year earlier.
The significant decrease in the amount of net profit for the period was mainly attributable to the rising labour costs in China and the continuous serious pressure on selling price due to the keen price competition from other manufacturers outside China including those in Philippines and Vietnam.
No interim dividend will be distributed.