The Government Logistics Department on Saturday "partially terminated" a contract for the supply of bottled drinking water to government offices on Hong Kong Island and parts of the outlying islands.

The contract with Xin Ding Xin (XDX) Trade, which started in June, was originally due to expire three years later.

In a statement, the department said it had earlier conducted a test of bottled drinking water samples in government offices, which confirmed that the bottled drinking water from all suppliers complied with the safety standards for bottled drinking water.

But it also said it was "not satisfied that XDX would still be capable of performing the contract" upon receiving information about the company's business operation and will therefore "follow up seriously and take action including whether to terminate the contract".

From next week, bottled water in the area will be supplied by AS Watson Group that provides water branded as "Cool", which the company currently supplies to government offices in Kowloon.

The department added that it has referred the case to police for investigation.

The department conducted an open tender in March this year to select suitable suppliers of bottled drinking water for government departments.

Professional Trade International won the tender to supply drinking water to the New Territories and part of Lantau.