WEB NEWS Comments & Business Outlook
HONG KONG, April 27, 2018 (GLOBE NEWSWIRE ) -- The Board of Directors of the Company (CSHEF) announced the following financial information for the year ended December 31, 2017:-
UNAUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2017
Financial Highlights
Year ended
The Rmb2.2 million loss from operating activities represented the general and administrative expenses incurred for the year ended December 31, 2017. General and administrative expenses were comprised of expenditures for personnel and administrative functions, including accounting, information technology, human resources, legal and administration. The general and administrative expenses in 2016 were Rmb2.7 million.
Apart from the general and administrative expenses of Rmb2.2 million, components of net income of Rmb6.5 million for the year ended December 31, 2017 were interest income of Rmb5.4 million, dividend income of Rmb0.1million and gain on dissolution of subsidiaries of Rmb6.5 million, partial offset by net realized loss on investments of Rmb0.2 million, unrealized loss on trading securities of Rmb2.3 million and interest expense of Rmb0.8 million.
Comments & Business Outlook
CHINA ENTERPRISES LIMITED
(Amounts in thousands, except number of shares and per share data)
Year ended December 31,
2013
2014
2015
2015
Rmb
Rmb
Rmb
US$
Operating activities
General and administrative expenses
(1,762
)
(2,148
)
(2,803
)
(433
)
Non-operating income (expenses):
Dividend income
—
3,866
—
—
Interest income
145
137
86
13
Interest expense
(534
)
(552
)
(563
)
(87
)
Net realized gain (loss) on investments
—
919
(409
)
(63
)
Unrealized gain (loss) on trading securities still held at the balance sheet date
12,165
(4,045
)
9,966
1,538
Exchange loss
(76
)
(667
)
(2,215
)
(342
)
Profit (loss) before income tax
9,938
(2,490
)
4,062
626
Income tax expense (note 7)
—
—
—
—
Net income (loss)
9,938
(2,490
)
4,062
626
Other comprehensive income, net of tax
Foreign currency translation adjustment
(14,217
)
11,328
26,046
4,021
Available-for-sale investment securities:
Change in unrealized gains (losses)
7,041
(1,377
)
(2,811
)
(434
)
Net change
(7,176
)
9,951
23,235
3,587
Total comprehensive income
2,762
7,461
27,297
4,213
Earnings (loss) per common share
Basic and diluted
1.10
(0.28
)
0.45
0.07
Weighted average number of shares used in the calculation of earnings (loss) per common share
Basic and diluted
9,017,310
9,017,310
9,017,310
9,017,310
Comments & Business Outlook
CHINA ENTERPRISES LIMITED
(Amounts in thousands, except number of shares and per share data)
Year ended December 31,
2012
2013
2014
2014
Rmb
Rmb
Rmb
US$
Operating activities
General and administrative expenses
(1,708
)
(1,762
)
(2,148
)
(346
)
Non-operating income (expenses):
Dividend income
—
—
3,866
623
Interest income
164
145
137
22
Interest expense
(916
)
(534
)
(552
)
(89
)
Net realized gain on investments
1,330
—
919
148
Unrealized gain (loss) on trading securities still held at the balance sheet date
4,541
12,165
(4,045
)
(652
)
Others
10
—
—
—
Exchange loss
(490
)
(76
)
(667
)
(108
)
Profit (loss) before income tax
2,931
9,938
(2,490
)
(402
)
Income tax expense (note 6)
—
—
—
—
Net income (loss)
2,931
9,938
(2,490
)
(402
)
Other comprehensive income, net of tax
Foreign currency translation adjustment
(3,548
)
(14,217
)
11,328
1,826
Available-for-sale investment securities:
Change in unrealized (losses) gains
—
7,041
(1,377
)
(222
)
Net change
(3,548
)
(7,176
)
9,951
1,604
Total comprehensive income (loss)
(617
)
2,762
7,461
1,202
Earnings (loss) per common share
Basic and diluted
0.33
1.10
(0.28
)
(0.04
)
Weighted average number of shares used in the calculation of earnings (loss) per common share
Basic and diluted
9,017,310
9,017,310
9,017,310
9,017,310
Comments & Business Outlook
CHINA ENTERPRISES LIMITED
(Amounts in thousands, except number of shares and per share data)
Year ended December 31,
2011
2012
2013
2013
Rmb
Rmb
Rmb
US$
Operating activities
General and administrative expenses
(4,186
)
(1,708
)
(1,762
)
(291
)
Non-operating income (expenses):
Interest income
1,471
164
145
24
Interest expense
(2,239
)
(916
)
(534
)
(88
)
Net realized gain recognized on investments
4,393
1,330
—
—
Unrealized gain (loss) on trading securities still held at the balance sheet date
(27,063
)
4,541
12,165
2,010
Impairment loss recognized on available-for-sale securities
(2,281
)
—
—
—
Loss on disposal of an affiliate (note 3)
(364,480
)
—
—
—
Administrative charges on investment (note 7)
(7,500
)
—
—
—
Others (note 13(a))
744
10
—
—
Exchange loss
(114
)
(490
)
(76
)
(13
)
Profit (loss) before income tax and equity in earnings of equity method affiliates
(401,255
)
2,931
9,938
1,642
Income tax expense (note 8)
(31,411
)
—
—
—
Equity in earnings of equity method affiliates (note 3)
157,711
—
—
—
Net income (loss)
(274,955
)
2,931
9,938
1,642
Other comprehensive income, net of tax
Foreign currency translation adjustment
119
(3,548
)
(14,217
)
(2,349
)
Available-for-sale investment securities:
Change in unrealized (losses) gains
(2,281
)
—
7,041
1,163
Impairment loss
2,281
—
—
—
Less: reclassification adjustment for gains recorded in net income
(4,979
)
—
—
—
Net change
(4,860
)
(3,548
)
(7,176
)
(1,186
)
Total comprehensive income
(279,815
)
(617
)
2,762
456
Earnings (loss) per common share
Basic and diluted
(30.49
)
0.33
1.10
0.18
Weighted average number of shares used in the calculation of earnings (loss) per common share
Basic and diluted
9,017,310
9,017,310
9,017,310
9,017,310
Management Discussion and Analysis
For 2013, the Company recorded consolidated net income of Rmb9.9 million, or Rmb1.10 per share. By comparison, the net profit and the earnings per share in 2012 were Rmb2.9 million and Rmb0.33, respectively.
The Rmb1.8 million loss from operating activities represented the administrative expenses incurred for the year ended December 31, 2013. General and administrative expenses were comprised of expenditures for personnel and administrative functions, including accounting, information technology, human resources, legal and administration. The general and administrative expenses in 2012 were Rmb1.7 million.
Apart from the general and administrative expenses of Rmb1.8 million, components of net profit of Rmb9.9 million for the year ended December 31, 2013 were interest income of Rmb0.1 million, unrealized gain recognized on trading securities of Rmb12.2 million, offset by interest expense of Rmb0.5 million and an exchange loss of Rmb0.1 million.
Apart from the general and administrative expenses of Rmb1.7 million, components of net profit of Rmb2.9 million for the year ended December 31, 2012 were interest income of Rmb0.2 million, realized gain recognized on disposal of securities of Rmb1.3 million and unrealized gain recognized on trading securities of Rmb4.5 million, offset by interest expense of Rmb0.9 million and an exchange loss of Rmb0.5 million.
Comments & Business Outlook
CHINA ENTERPRISES LIMITED
(Amounts in thousands, except number of shares and per share data)
Year ended December 31,
2010
2011
2012
2012
Rmb
Rmb
Rmb
US$
Operating activities
General and administrative expenses
(3,316
)
(4,186
)
(1,708
)
(274
)
Non-operating income (expenses):
Interest income
3,379
1,471
164
26
Interest expense
(3,299
)
(2,239
)
(916
)
(147
)
Investment income
5,989
—
—
—
Net realized (loss) gain recognized on investments
(1,287
)
4,393
1,330
213
Unrealized gain (loss) on trading securities still held at the balance sheet date
(3,555
)
(27,063
)
4,541
729
Change in fair value of conversion option (note 6)
(185
)
—
—
—
Impairment loss recognized on available-for-sale securities
(6,015
)
(2,281
)
—
—
Loss on disposal of an affiliate (note 3)
—
(364,480
)
—
—
Administrative charges on investment (note 7)
—
(7,500
)
—
—
Others (note 13(a))
—
744
10
2
Exchange gain (loss)
1,345
(114
)
(490
)
(79
)
Profit (loss) before income tax and equity in earnings of equity method affiliates
(6,944
)
(401,255
)
2,931
470
Income tax expense (note 8)
(15,194
)
(31,411
)
—
—
Equity in earnings of equity method affiliates (note 3)
190,167
157,711
—
—
Net income (loss)
168,029
(274,955
)
2,931
470
Other comprehensive income, net of tax
Foreign currency translation adjustment
(1,023
)
119
(3,548
)
(569
)
Available-for-sale investment securities:
Change in unrealized losses
(865
)
(2,281
)
—
—
Impairment loss
6,015
2,281
—
—
Less: reclassification adjustment for gains recorded in net income
—
(4,979
)
—
—
Net change
4,127
(4,860
)
(3,548
)
(569
)
Total comprehensive income
172,156
(279,815
)
(617
)
(99
)
Earnings (loss) per common share
Basic and diluted
18.63
(30.49
)
0.33
0.05
Weighted average number of shares used in the calculation of earnings (loss) per common share
Basic and diluted
9,017,310
9,017,310
9,017,310
9,017,310
Management Discussion and Analysis
For 2012, the Company recorded consolidated net income of Rmb2.9 million, or Rmb0.33 per share. By comparison, the net loss and the loss per share in 2011 was Rmb275.0 million and Rmb30.49, respectively. The significant loss in fiscal year 2011 was primarily due to the loss on disposal of the Company’s 26% interest in Hangzhou Zhongce of Rmb364.5 million.
The Rmb1.7 million loss from operating activities represented the administrative expenses incurred for the year ended December 31, 2012. General and administrative expenses were comprised of expenditures for personnel and administrative functions, including accounting, information technology, human resources, legal and administration. The general and administrative expenses in 2011 were Rmb4.2 million. Higher legal and professional fees were incurred in 2011 on the disposal of Hangzhou Zhongce.
Comments & Business Outlook
HONG KONG, CHINA--(Marketwired - Feb 10, 2015) - China Enterprises Limited (OTC PINK : CSHEF)
The Board of Directors of the Company announced the following financial information for the years ended December 31, 2012 and 2013:
CONSOLIDATED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2012
Financial Highlights
Year ended
Year ended
Revenue
Nil
Nil
Net earning/(loss) per common share
Rmb0.33
Rmb(30.49)
In November 2011, the Company disposed of all of its interest in Hangzhou Zhongce Rubber Co., Ltd. ("Hangzhou Zhongce") and it ceased to be an equity method affiliate of the Company.
Operating loss decreased to Rmb1.7 million in 2012 compared to Rmb4.2 million for the fiscal 2011. The Rmb1.7 million on operating loss mainly represented administrative expenses incurred for the year ended December 31, 2012.
Profit before income tax and equity in earning of equity method affiliate for the year ended December 31, 2012 increased to Rmb2.9 million compared to loss of Rmb401.3 million in 2011. The significant loss in fiscal year 2011 was primarily due to the loss on disposal of 26% interest in Hangzhou Zhongce of Rmb364.5 million. The net income for the fiscal year 2012 consisted mainly of interest income of Rmb0.2 million, interest expense of Rmb0.9 million, realized gain recognized on disposal of securities amounted to Rmb1.3 million, unrealized gain recognized on trading securities amounted to Rmb4.5 million, administrative charges on investment of Rmb1.7 million and exchange loss of Rmb0.5 million.
CONSOLIDATED RESULTS FOR THE YEAR ENDED DECEMBER 31, 2013
Financial Highlights
Year ended
Year ended
Revenue
Nil
Nil
Net earning per common share
Rmb1.10
Rmb0.33
The Company does not have an operating subsidiary up to the date of this press release, and the Company is actively seeking new opportunities with respect to its business.
Operating loss increased to Rmb1.8 million in 2013 compared to Rmb1.7 million for the fiscal 2012. The Rmb1.8 million on operating loss mainly represented administrative expenses incurred for the year ended December 31, 2013.
Profit before income tax for the year ended December 31, 2013 increased to Rmb9.9 million compared to profit of Rmb2.9 million in 2012. The net income for the fiscal year 2013 consisted mainly of interest income of Rmb0.1 million, interest expense of Rmb0.6 million, unrealized gain recognized on trading securities amounted to Rmb12.2 million, administrative charges on investment of Rmb1.8 million.
Comments & Business Outlook
HANGZHOU ZHONGCE RUBBER CO., LTD.
(Amounts in thousands)
Year ended December 31,
Eleven months ended November 30,
2009
2010
2011
2011
Rmb
Rmb
Rmb
US$
Net revenues:
- third parties
15,084,814
20,171,781
23,876,059
3,744,383
- related companies
60,514
86,685
83,419
13,082
Total
15,145,328
20,258,466
23,959,478
3,757,465
Cost of revenues
(12,936,757
)
(18,340,738
)
(21,925,225
)
(3,438,442
)
Gross profit
2,208,571
1,917,728
2,034,253
319,023
Selling, general and administrative expenses
(877,338
)
(980,301
)
(1,049,407
)
(164,574
)
Government subsidies
28,439
67,573
8,580
1,346
Other operating income, net
16,669
267
47,696
7,480
Operating income
1,376,341
1,005,267
1,041,122
163,275
Non-operating income (expenses):
Interest income
6,314
5,393
2,387
374
Interest expenses
(178,176
)
(179,292
)
(216,561
)
(33,962
)
Other income (loss)
549
(11,928
)
1,315
206
Income before income taxes and noncontrolling interests
1,205,028
819,440
828,263
129,893
Income tax expenses
(181,748
)
(46,289
)
(190,936
)
(29,944
)
Net income
1,023,280
773,151
637,327
99,949
Net income attributable to noncontrolling interests
(42,059
)
(41,740
)
(30,745
)
(4,822
)
Net income attributable to the shareholders of the Company
981,221
731,411
606,582
95,127
Management Discussion and Analysis
Results of Operations: Fiscal year ended December 31, 2011 compared with fiscal year ended December 31, 2010
For 2011, the Company recorded consolidated net loss of Rmb275.0 million, or Rmb30.49 per share. By comparison, the net profit and the net profit per share in 2010 was Rmb168.0 million and Rmb18.63, respectively. Loss before income tax and equity in earnings from affiliates for the year ended December 31, 2011 increased to Rmb401.3 million compared to loss of Rmb6.9 million in 2010. The significant loss in fiscal year 2011 was primarily due to the loss on disposal of 26% interest in Hangzhou Zhongce of Rmb364.5 million.
The Rmb4.2 million loss from operating activities mainly represented the administrative expenses incurred for the year ended December 31, 2011. General and administrative expenses comprised expenditures for personnel and administrative functions, including accounting, information technology, human resources, legal and administration. The general and administrative expenses in 2011 amounted to Rmb4.2 million, an increase of Rmb0.9 million, compared to Rmb3.3 million in 2010. The increase in our administrative expenses during fiscal year 2011 is in line with the increase in certain legal and professional costs and administrative costs incurred on the disposal of our equity interest in Hangzhou Zhongce.
Apart from general and administrative expenses of Rmb4.2 million, losses before income tax and equity in earnings from affiliates for the year ended December 31, 2011 were mainly comprised of losses on the disposal of the interest in Hangzhou Zhongce of Rmb364.5 million, net unrealized loss on investments of Rmb27.1 million, administrative charge on investment of Rmb7.5 million, impairment loss recognized on available-for-sale investments of Rmb2.3 million and interest expenses of Rmb2.2 million, offset by net realized gain recognized on investments of Rmb4.4 million and interest income of Rmb1.5 million. In April 2008, we entered into a Memorandum of Understanding to acquire certain equity interest in a property investment company for a consideration of Rmb150 million. A refundable deposit of Rmb75 million was paid to the third party vendor pursuant to the Memorandum of Understanding during the year ended December 31, 2008. The Memorandum of Understanding lapsed in June 2011. The deposit of Rmb67.5 million was refunded to us and the remaining Rmb7.5 million was charged as administrative charges in the year ended December 31, 2011. Loss before income tax and equity in earnings from affiliates was Rmb6.9 million for the year ended December 31, 2010. The significant deterioration in financial performance in 2011 was primarily due to the loss on disposal of our equity interest in Hangzhou Zhongce of Rmb364.5 million incurred in the fiscal year.
The net loss for fiscal year 2011, apart from the loss before income tax and equity in earnings from affiliates of Rmb401.3 million, consisted mainly of the Company’s share of net profit of Hangzhou Zhongce of Rmb157.7 million and income tax expense of Rmb31.4 million. Net income for fiscal year 2010, apart from the loss before income tax and equity in earnings from affiliates of Rmb6.9 million, consisted mainly of the Company’s share of net profit of Hangzhou Zhongce of Rmb190.2 million and income tax expense of Rmb15.2 million. The share of profit of Hangzhou Zhongce decreased Rmb32.5 million primarily due to the increase in the cost of materials causing a drop in gross profit and the Company only sharing the profit of Hangzhou Zhongce for the 11 months ended November 30, 2011 compared to a full 12 months of profit taken into account for fiscal year 2010.
For the 11 months ended November 30, 2011 Hangzhou Zhongce recorded a consolidated turnover of approximately Rmb23,959 million, an increase of approximately 18.3% as compared to the whole year 2010 of approximately Rmb20,258 million. The audited consolidated net profit for the 11 months ended November 30, 2011 decreased to approximately Rmb606.6 million from approximately Rmb731.4 million for the year ended December 31, 2010. In 2011, the cost of raw materials, in particular the cost of natural rubber, in the tire industry kept increasing, resulting in a drop in gross margin from 9.5% in 2010 to 8.5% in 2011.
Acquisition Activity
HONG KONG--(Marketwire - Oct 4, 2012) - China Enterprises Limited ("China Enterprises" or the "Company") (PINKSHEETS : CSHEF ) today announced that its wholly owned subsidiary, Wealth Faith Limited ("Wealth Faith") has entered into a definitive agreement (the "Agreement") with Fortuneasy Limited ("Fortuneasy"). The Agreement provides for the purchase by Wealth Faith of 40% of the shares of Million Cube Limited ("Million Cube") from Fortuneasy. The total purchase price for the shares being acquired by Wealth Faith is HK$200 million or approximately US$25.8 million. The Company, through Wealth Faith, has previously deposited HK$154.8 million or approximately US$19.9 million in earnest money with Fortuneasy, which will be applied toward the purchase price.
As provided in the Agreement, Million Cube has acquired 45% of the issued share capital and corresponding shareholder loans of Paragon Winner Company Limited ("Paragon"). Paragon was formed to invest in a joint venture that has developed the Sanya Sun Valley Golf Resort in Yalong Bay, Sanya City, People's Republic of China and that is seeking to develop a related hotel and resort complex at such resort.
The closing of the transaction is subject to, among other things, the Company and Wealth Faith satisfactorily completing due diligence and the receipt of all necessary governmental and other consents. The parties to the transaction anticipate that the transaction will close sometime in the fourth quarter of 2012.
Following the closing of the transaction and under the terms of the Agreement, the shares of Million Cube held by Wealth Faith will be subject to certain transfer restrictions, including rights of first refusal benefiting Fortuneasy. In addition, as an investor in Million Cube, Wealth Faith may be required under the terms of the Agreement to loan additional funds to Million Cube should Million Cube's board of directors determine that either Million Cube or Paragon lacks sufficient financial resources to meet capital requirements. Wealth Faith will have the right to appoint one director to Million Cube's board of directors so long as it holds any shares in Million Cube.
Going Private News
“HONG KONG -- (
Marketwire ) -- 11/28/11 -- China Enterprises Limited ("China Enterprises" or the "Company") (PINKSHEETS: CSHEF) today announced that it closed the previously announced sale of all of the Company's ownership interests in Hangzhou Zhongce Rubber Company Limited ("Hangzhou") to CZ Tire Holdings Limited ("CZ") for a purchase price of RMB600,000,000 or approximately US$94.41 million, based on the RMB:USD exchange rate reported on November 25, 2011. At closing, approximately US$6.29 million of the proceeds otherwise payable to the Company will be instead deposited into a tax service account for payment of taxes related to the transaction.”
