China Enterprises Ltd. reported consolidated financial results for the year ended December 31, 2011. For the year, the company's loss before income tax and equity in earning of equity method affiliate increased to RMB 401.3 million compared to loss of RMB 6.9 million in 2010. The net loss for the fiscal year 2011 consisted mainly of investment income of RMB 4.4 million, interest income of RMB 1.5 million, interest expense of RMB 2.2 million, impairment loss recognized on available-for-sale securities amounted to RMB 2.3 million, unrealized loss recognized on trading securities amounted to RMB 27.1 million, administrative charges on investment of RMB 7.5 million, income tax expense of RMB 31.4 million, the company's share of net profit of Hangzhou Zhongce in an amount of RMB 157.7 million, and loss on disposal of interest in Hangzhou Zhongce of RMB 364.5 million.

Operating loss increased to RMB 4.2 million compared to RMB 3.3 million for the fiscal 2010. The RMB 4.2 million on operating loss mainly represented administrative expenses incurred for the year ended December 31, 2011. Net loss was RMB 275 million or RMB 30.49 per share compared to net income of RMB 168 million or RMB 18.63 per share reported a year ago.