SOURCE: China Enterprises Limited

September 26, 2014 16:16 ET

China Enterprises Limited Announces Consolidated Results for the Year Ended December 31, 2011

HONG KONG, CHINA--(Marketwired - Sep 26, 2014) - China Enterprises Limited ("the Company") (PINKSHEETS: CSHEF) inadvertently issued a press release on September 24, 2014 with respect to the same subject matter as this release. That earlier release has been retracted and this release supersedes it in all respects.

The Board of Directors of the Company announces the following financial information for the year ended December 31, 2011:

Financial Highlights

     
  Year ended
December 31, 2011
Year ended
December 31, 2010
Revenue Nil Nil
Operating loss Rmb(4.2M) Rmb(3.3M)
Loss before income tax and equity in earning of equity method affiliate Rmb(401.3M)  Rmb(6.9M)
Net income/(loss) Rmb(275M) Rmb168M
Net earning/(loss) per common share Rmb(30.49) Rmb18.63
     

Since the Company does not have an operating subsidiary up to the date of this press release, the financial results of the Company in fiscal 2010 and 2011 greatly depended on the share of result of its affiliate in the tire business, Hangzhou Zhongce Rubber Co., Ltd. ("Hangzhou Zhongce"). In November 2011, the Company disposed of all of its interest in Hangzhou Zhongce and it ceased to be an equity method affiliate of the Company.

Operating loss increased to Rmb4.2 million in 2011 compared to Rmb3.3 million for the fiscal 2010. The Rmb4.2 million on operating loss mainly represented administrative expenses incurred for the year ended December 31, 2011.

Loss before income tax and equity in earning of equity method affiliate for the year ended December 31, 2011 increased to Rmb401.3 million compared to loss of Rmb6.9 million in 2010. The net loss for the fiscal year 2011 consisted mainly of net realized gain recognized on investments of Rmb4.4 million, interest income of Rmb1.5 million, interest expense of Rmb2.2 million, impairment loss recognized on available-for-sale securities amounted to Rmb2.3 million, unrealized loss recognized on trading securities amounted to Rmb27.1 million, administrative charges on investment of Rmb7.5 million, income tax expense of Rmb31.4 million, the Company's share of net profit of Hangzhou Zhongce in an amount of Rmb157.7 million, and loss on disposal of interest in Hangzhou Zhongce of Rmb364.5 million.

The Company presently anticipates that it will hold its next Annual General Meeting in Hong Kong as soon as practicable in 2015.

Contact Information

  • For more information, please contact:

    Hong Kong
    China Enterprises Limited
    Tel: (852) 2372 0130
    Fax: (852) 2537 6591

    New York
    Pristine Advisers LLC
    Tel: (631) 756-2486
    Fax: (646) 478-9415