SOURCE: China Enterprises Limited

January 27, 2010 17:08 ET

China Enterprises Limited Consolidated Results for the Year Ended December 31, 2008

NEW YORK, NY--(Marketwire - January 27, 2010) - The Board of Directors of China Enterprises Limited ("the Company") announces the following financial information of the Company for the year ended December 31, 2008: -

Financial Highlights
                           Year ended          Year ended
                       December 31, 2008   December 31, 2007  Change +/(-)%
Revenue                    Nil                 Nil             N/A
Operating (income)/loss    Rmb5.8M             Rmb(13.1)M      (144.3)%
Loss from continuing
 operations                Rmb71.4M            Rmb28.2M        253.2%
Net loss                   Rmb71.4M            Rmb28.2M        253.2%
Net loss per common share  Rmb7.92             Rmb3.12         253.2%

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 2007 and 2008 greatly depended on the share of result of its affiliate in the tire business, Hangzhou Zhongce Rubber Co., Ltd. ("Hangzhou"). During the fiscal 2007, following purchased and disposed of certain shares of Wing On in the market, the interest of Wing On held by the Company was diluted from approximately 20.36% to 12.77%, and was accounted for as trading securities of the Company thereafter.

Operating loss increased to Rmb5.8 million in 2008 compared to operating income of Rmb13.1 million in 2007. This was mainly due to a gain on disposal of subsidiaries amounting Rmb19.3 million incurred during the fiscal 2007, which did not recur in 2008. The Rmb5.8 million on operating loss mainly represented administrative expenses incurred for the year ended December 31, 2008.

Loss from continuing operations for the year ended December 31, 2008 increased to Rmb71.4 million compared to Rmb28.2 million for the last year. The loss for the fiscal year 2008 consisted mainly of net loss recognized on trading securities sold during the year amounted to Rmb2.6 million, unrealized loss recognized on trading securities amounted to Rmb56.7 million, loss upon a decrease in fair value of the call option associated with the convertible note of Wing On totaling Rmb4.2 million, impairment loss recognized on available-for-sale securities amounting Rmb69.5 million, interest expenses of Rmb3.8 million, income tax credit of Rmb9.5 million and the Company's share of net profit of Hangzhou in an amount of Rmb35.4 million and interest income of Rmb4.9 million.

The Annual General Meeting for the Company will be held in Hong Kong on March 31, 2010. Based on the record date of February 11, 2010, 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) 646 478 9415