China Water Industry (HKG:1129) has entered into two non-binding memoranda of understanding for potential acquisitions in China, according to a Sept. 26 Hong Kong bourse filing.

Shares of the firm were down nearly 1% in Monday morning trade.

The first covers the proposed purchase of the entire limited partnership interest in Zhejiang Free Trade Zone Charity Enterprise Management Consulting Partnership Enterprise, while the second involves acquiring 1% of Beijing Baodian Information Technology.

The company said the consideration terms will be subject to due diligence and further negotiation.

China Water Industry said the potential acquisitions could diversify its revenue streams by expanding into China's information technology sector.