China Enterprises Limited Year End Results; Consolidated Results for the Year Ended December 31, 2003

NEW YORK--June 8, 2004--The Board of Directors of China Enterprises Limited announces the following financial information of the Company for the year ended December 31, 2003:

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Financial Highlights
                        Year ended         Year ended
                     December 31, 2002   December 31, 2003    Change %
Revenues                  Rmb2,610.1M         Rmb2,808.4M      +  7.6%
Loss from continuing 
 operations               Rmb(62.9M)          Rmb(99.6M)       + 58.3%
Loss from discontinued 
 operations               Rmb(199.8M)         Rmb(7.8M)        - 96.1%
Net loss                  Rmb(262.8M)         Rmb(107.3M)      - 59.2%
Net loss per
 common share             Rmb(29.14)          Rmb(11.90)       - 59.2%
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The tire market in the People's Republic of China continued its strong growth in fiscal year 2003. Along with the rapid development of the PRC economy and the implementation of the construction of "five vertical and seven horizontal" National Trunks System by the Chinese government, the development of roads and highways accelerated in 2003 and resulted in increased demand for motor vehicles and vehicle-related components, including tires.

Consolidated revenues arising from continuing operations amounted to Rmb2.81 billion, representing a 7.6% increase over the fiscal year 2002 revenues of Rmb2.61 billion. This was mainly due to an increase in sales volume, especially in the radial tire market. The demand for radial tires has remained high since 2001 and Hangzhou Zhongce continues to increase its productive volume of radial tires. It sold a total of 5.3 million units of vehicle tires, 35.0 million units of bicycle tires and 2.3 million units of wheelbarrow tires in the nine-month period ended of fiscal 2003.

Loss from continuing operations increased to Rmb99.6 million in 2003 compared to a loss of Rmb62.9 million in 2002. This is mainly contributed by the equity in losses of affiliates amounting to Rmb120.2 million.

Loss from discontinued operations decreased to Rmb7.8 million in the fiscal year 2003 from Rmb199.8 million in fiscal year 2002 which was mainly due to the loss on disposal of Yinchuan CSI and CSI Rubber.

For the year ended December 31, 2003, the Company recorded a consolidated net loss of Rmb107.3 million. This represents a 59.2% decrease compared with Rmb262.8 million in 2002. These improvements resulted mainly from divestitures of non-performing assets and business in 2002 and early 2003.

The Annual General Meeting for China Enterprises will be held in Hong Kong on June 29, 2004. Based on the record date of April 8, 2004, the Company will dispatch a notice of the meeting and a proxy statement to shareholders in due course.