China Enterprises Limited is principally engaged in the tire manufacturing and trading business. The Company's tire business is primarily conducted through Hangzhou Zhongce Rubber Co., Limited, which, through September 2003, was a majority-owned subsidiary of the Company. China Enterprises sold a 25% interest in Hangzhou Zhongce, during the year ended December 31, 2003, leaving the Company with a minority interest in Hangzhou Zhongce as of October 1, 2003. During the year ended December 31, 2002, China Enterprises began to diversify its business and acquired an interest in Wing On Travel (Holdings) Limited, a Hong Kong-based travel company. On June 16, 2004, the Company, through an indirect wholly owned subsidiary, entered into an agreement with an independent third party, Shanghai Jiu Sheng Investment Company Limited, for the proposed acquisition by the Company of a parcel of land and a 24-story building under construction on the land located in Shanghai, People's Republic of China.