Beijing Enterprises Water (HKG:0371) has proposed that the entire amount standing to the credit of the share premium account as at the effective date be reduced to nil, with part of the credit arising therefrom being applied towards offsetting the entire amount of the accumulated losses of the company as at the effective date and the remaining balance being credited to the contributed surplus account of the company.

As at 30 June 2011, the total amount standing to the credit of the share premium account and the accumulated losses of the company were HK$5.689 billion and HK$202.287 million respectively.

Upon the reduction of share premium becoming effective, all the accumulated losses of the company as at the effective date will be eliminated, the company said.