The board of directors of China Water Industry Group Limited announced that is expected to record profit for the six months ended June 30, 2012 as compared to the loss recorded for the corresponding period in 2011. Such turn around is mainly attributable to recovery of impairment loss on loan receivable; waiver of loan interest and absence of: change in fair value of financial instruments; impairment loss recognised on available-for-sale investments and trade and other receivables; and loss on deemed partial disposal of an associate.