SOURCE: China Enterprises Limited

March 02, 2009 17:05 ET

China Enterprises Limited Reports Consolidated Results for the Year Ended December 31, 2007

NEW YORK, NY--(Marketwire - March 2, 2009) - The Board of Directors of China Enterprises Limited (PINKSHEETS: CSHEF) ("the Company") announces the following financial information of the Company for the year ended December 31, 2007:

                                   Year ended    Year ended
                                  December 31,  December 31,     Change
                                      2007          2006         +/(-)%
Revenue                                     Nil           Nil         N/A
Operating (income)/loss              Rmb(13.1)M      Rmb16.8M      (177.9)%
Loss from continuing operations        Rmb28.2M      Rmb21.2M        33.0%
Net loss                               Rmb28.2M      Rmb21.2M        33.0%
Net loss per common share               Rmb3.12       Rmb2.35        33.0%
 

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 2006 and 2007 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. 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 income increased to Rmb13.1 million in 2007 compared to operating loss of Rmb16.8 million in 2006. 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 2006.

For the year ended December 31, 2007, the Company recorded a consolidated net loss of Rmb28.2 million, or Rmb3.12 per share. By comparison, the net loss and the net loss per share in 2006 was Rmb21.2 million and Rmb2.35, respectively. The loss for the fiscal year 2007 consisted primarily of net loss recognized on trading securities sold during the year amounted Rmb90.9 million, unrealized loss recognized on trading securities amounted Rmb12.2 million, loss on disposal of interest in Wing On amounting to Rmb69.0 million, income tax amounted Rmb19.3 million and partially offset with operating income of Rmb13.1 million, gain upon a increase in fair value of the call option associated with the convertible note of Wing On totaling Rmb19.2 million, the Company's share of net profit of Hangzhou and Wing On in an amount of Rmb121.4 million and interest income of Rmb9.5 million.

The Annual General Meeting for the Company will be held in Hong Kong on March 31, 2009. Based on the record date of February 27, 2009, 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