SOURCE: China Enterprises Limited

November 26, 2007 08:41 ET

China Enterprises Limited Consolidated Results for the Year Ended December 31, 2006

NEW YORK, NY--(Marketwire - November 26, 2007) - The Board of Directors of China Enterprises Limited ("the Company") (PINKSHEETS: CSHEF) announces the following financial information of the Company for the year ended December 31, 2006:

                          Year ended         Year ended
                       December 31, 2006  December 31, 2005  Change +/(-)%
                       -----------------  -----------------  -------------
Revenue                    Nil                Nil                N/A
Operating loss             Rmb16.8M           Rmb27.5M          (38.9)%
Loss from continuing
 operations                Rmb21.2M           Rmb26.3M          (19.4)%
Net loss                   Rmb21.2M           Rmb26.3M          (19.4)%
Net loss per common
 share                     Rmb2.35            Rmb2.92           (19.5)%

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 2005 and 2006 greatly depended on the share of results of its affiliates, including Hangzhou Zhongce Rubber Co., Ltd. ("Hangzhou"), the tire business and Wing On Travel Holdings Limited ("Wing On"), the travel business.

Operating loss decreased to Rmb16.8 million in 2006 compared to Rmb27.5 million in 2005. This was mainly due to the increase in our administrative expenses during the fiscal year 2005 in relation to certain legal and professional costs incurred on the transaction acquiring the property situated in Shanghai, the PRC, which did not recur in 2006.

For the year ended December 31, 2006, the Company recorded a consolidated net loss of Rmb21.2 million, or Rmb2.35 per share. By comparison, the net loss and the net loss per share in 2005 was Rmb26.3 million and Rmb2.92, respectively. The loss for the fiscal year 2006 consisted primarily of a loss upon a decrease in fair value of the call option associated with the convertible note of Wing On totaling Rmb19.5 million, general and administrative expenses amounted Rmb16.8 million, and partially offset with the Company's share of net profit of Hangzhou and Wing On in an amount of Rmb3.3 million and interest income of Rmb12.3 million.

The Annual General Meeting for the Company will be held in Hong Kong on December 31, 2007. Based on the record date of November 15, 2007, the Company will dispatch a notice of the meeting and a proxy statement to shareholders in due course.

Contact Information

  • For more information, please contact:

    Hong Kong
    China Enterprises Limited
    Mr. Chow Chun Man, Jimmy
    Tel: (852) 2372 0130
    Fax: (852) 2537 6591

    New York
    The Altman Group
    Tel: (1) 212 400 2604
    Fax: (1) 212 681 1383