NOV. 20–BRIARCLIFF, NY–Sales erosion has forced Hong Kong Batteries Ltd. (Hkbil), a distributor of cleanroom supplies and tools, to ceased operations.

Along with supplies for controlled environments, Hkbil, a wholly owned subsidiary of SETO Holdings Inc., distributed rechargeable battery packs for power tools, notebook computers and camcorders.

Hkbil, which teamed with an unnamed China company, also manufactured small precision disposable diamond and other base material tools that are used to separate electronic components and devices.

Revenues of $2,039,543 from Hkbil comprised 30 percent of the company’s revenues for the fiscal year ended January 31, 2002, and Hkbil revenues of $64,404 at July 31, 2002 represented only 3 percent of the company’s overall revenues at that date.

“Management felt that Hkbil’s drastic reduction in revenue and its inability to post profits necessitated this action, according to a company statement.

“Management estimates that the company will realize a loss from discontinued operations of approximately $660,000 from the write down of the goodwill associated with the original acquisition of Hkbil.”