SINGAPORE (Sept 4): Blue Sky Power is planning to focus on the natural gas business in China while letting its printing business die out gradually.

Blue Sky says the group's business of sale of book and specialised products is “facing intense competition in the printing market”.

“The revenue and gross profit margin from the printing business is constantly declining and the printing business incurred a segment loss of HK$9.2 million ($1.7 million) for the six months ended 30 June 2015,” says Blue Sky in its SGX filing.

On the contrary, the group says it will continue to benefit from the development of the segment of sales of natural gas and other related products by riding on the escalating demand for natural gas in China for industrial, transportation and residential uses.

“Therefore, after review of the principal business operations of the group, the board has resolved to gradually fade out and discontinue the printing business, in order to consolidate its resources to focus on the natural gas business, which is of expected high growth potentials,” it adds.

Blue Sky says the gradual printing business could also “streamline the group’s business operations” and “reduce the operating loss of the group” while “not expected to have any material adverse impact on the group for the foreseeable future”.

The group has advised shareholders and potential investors to exercise caution when trading with the company's shares.

Blue Sky has a secondary listing in Singapore and a primary listing in Hong Kong.

It last traded at 6 cents on the SGX.