The Government Logistics Department (GLD) announced on the evening of August 18, 2025, that it has immediately terminated its contract with Xin Ding Xin Trading Co. Ltd., the supplier of bottled drinking water for government offices on Hong Kong Island and parts of the outlying islands. The decision, made under contract terms, stems from the GLD’s loss of confidence in the company’s ability to fulfill its obligations, supported by recent operational data and police enforcement actions. Additionally, three other chemical supply contracts linked to the company’s directors have also been terminated.
The water supply contract, awarded in June 2025 and effective from late that month, was valued at HK$52.94 million over three years. One of the canceled chemical contracts involved supplying approximately 940 metric tons of sodium bisulfite solution to the Stonecutters Island Sewage Treatment Works for two years, worth about HK$6.8 million, used for dechlorination post-disinfection. The GLD will continue to cooperate fully with the ongoing police investigation.
In the interim, the GLD has arranged for A.S. Watson Group (HK) Ltd. to temporarily supply bottled water to the affected offices starting this week, while optimizing tender requirements for a new supplier to be selected through an open bidding process.
The police investigation began after a referral from relevant departments, suspecting false declarations in the tender process. It is alleged that Xin Ding Xin submitted misleading documents, claiming water was sourced from a specific mainland company, which later clarified it had not supplied the firm. On August 17, the Commercial Crime Bureau arrested a 61-year-old local man and a 57-year-old local woman for suspected fraud. The operation yielded documents, phones, and computers, while approximately 2,600 bottles of water were seized from a Yuen Long warehouse for testing. Fraud, if convicted under Hong Kong law, carries a maximum penalty of 14 years’ imprisonment.
An update on August 19 at 6:00 AM revealed the 61-year-old man has been charged with fraud and will appear in Eastern Magistrates’ Court today, while the 57-year-old woman has been released on bail, required to report back in mid-September.