China Water Industry (HKG:1129) chairman and executive director Wang Deyin said today that the huge loss of about HK$530 million the company recorded for 2011 was incurred by past investments and acquisitions, but not by the water-treatment business. Through issuing new shares this year and with the convertible bonds issued last year, the company's debt level is expected to drop and the company looks for a turnaround to profit this year, he said.

The loss the company had for last year comprised 90% of debts, he said. The holder of the bonds issued last year, which had a principal amount of HK$280 million, may converted the bonds into shares this year, after which the company's gearing ratio will drop from 57% not to 20-30%, he said.

Source:chinesestock.org