Michael Lee, director of Lekit, said one of his subcontractors, Leter Stationery, had employed children aged 12 and 13 years during the school vacations, and that they were paid 2.5 usd per day, the BBC said.
But according to Lee, his factory had not been aware of this, and had since then ceased its cooperation with Leter Stationery, which produces packaging and labels for Lekit's products.
However, the BBC reported that Leter Stationery's factory is located directly opposite Lekit's factory in Dongguan, southern China.
Lee said his company was no longer using child labour, and that children had only been hired for 'light work', such as packaging.
The organisers of the Beijing Olympics had promised on Monday to shed light on the accusations by the Brussels-based International Trade Union Confederation (ITUC) that four factories in southern China had committed abuses including using child labour and paying half the legal minimum wage.