Sky Hawk goes core on mainland water

Sky Hawk Computer Group Holdings, which yesterday changed its name to China Water Industry Group, said it would diversify its core business to the supply and operation of water in the mainland in the next three years.

It would continue to operate its computer-related business through subsidiaries.

Sky Hawk, which recently bought three water-supply projects, aims to raise its daily water supply volume to five million tonnes, its daily water-supply capacity to 10 million tonnes and its sewage-treatment capacity to two million tonnes, managing director Zhong Wensheng said yesterday.

About 400 of China's more than 660 key cities faced water shortages and 110 were seriously short of water, the company said.

China Water will invest about 143 billion yuan on urban water supply in the next five years, about 28.6 billion yuan a year, the Ministry of Construction said.

The company bought three water-supply projects for HK$71.5 million in October and November and could operate water supply and sewage-treatment businesses.

Despite first-half sales rising 39 per cent to HK$33.4 million, a net loss of HK$21 million was recorded, compared with HK$216,000 net profit in the same period last year.

The shares closed up 1.3 per cent at 39.5 HK cents yesterday.