Hartcourt (WKN 900009) NEWS>>>>
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Sinobull Distributes Financial Data Services in China Via Mobile Short Messaging (SMS)
Hartcourt Subsidiary Signs Key Distribution Deals
LOS ANGELES, April 12 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT - news) www.hartcourt.com, announced today that its subsidiary, Sinobull Network Technology, has signed partnership agreements with five of Greater China's leading telecom and Internet companies to begin the distribution of its comprehensive financial information, stock quotes, and analysis on the local and international stock markets to millions of mobile phone users in China. Sinobull Network owns and operates www.sinobull.com , one of the leading financial information portals in China ... voted ``Most Popular Financial Web Site'' two years running by the China Security Times.
The company's recently signed revenue sharing deals with key players in the mobile data business include:
-- UTStarcom (Nasdaq: UTSI - news) www.utstar.com -- the key supplier of PAS
mobile networks and equipment for China Telecom, China's largest
telecom company
-- CellStar www.cellstar.com -- one of China's largest mobile phone
distributors
-- China Telecom 168 -- 168 is the SMS service of China Telecom
-- HongLian95 www.hl95.com -- a major value added telecom services
provider in China
-- Sina.com (Nasdaq: SINA - news) www.sina.com -- one of Greater China's largest
portals
-- China Telecom Hotline -- information hotline services from China
Telecom, via fix line
``Mobile data communication is a very exciting area of growth for the mobile communication industry, and Sinobull Network has successfully leveraged its unique advantages in financial content to secure revenue sharing agreements with these key industry players'', said Dr. Wallace Ching, Hartcourt's CEO. ``The agreements have generated revenue from day one, and we expect a very healthy growth in this business as the mobile data market continues to expand.''
China has recently passed Japan and the US and now has the largest mobile phone user population in the world, with approximately 140 million registered subscribers. Data mobile communication is becoming a very important sector of revenue growth for carriers. Short messaging service (SMS) enabled mobile chat, financial data, and other forms of data communication have become very popular with mobile users and is growing at a rapid rate. According to industry reports, SMS traffic is projected to generate approximately 300 million USD for China's mobile phone markets in 2002.
Hartcourt has announced that it will publicly divest its operating division, the Sinobull Financial Group, in a reverse merger with Global Telephone Communications Inc. (OTC Bulletin Board: GTCI - news). The reverse merger will result in Sinobull Financial Group actively trading on the U.S. equity markets.
About Hartcourt
The Hartcourt Companies is a holding and development enterprise that has built a broad network of Internet, media, and telecommunication companies in Greater China. In partnership with leading Chinese entrepreneurs and government-sponsored entities, Hartcourt is developing and investing in emerging technologies while building an integrated commercial framework for its subsidiaries and their partners. Hartcourt's operative business strategy is designed to facilitate a series of venture divestitures via IPO or public merger to fully realize the value of these assets for its investors. Detailed information on Hartcourt can be obtained via the company's Web site: www.hartcourt.com .
About Sinobull Financial Group
Sinobull Financial Group develops financial technology, financial operating platforms and internet-based financial services. Sinobull's operating companies include: Sinobull Information Company Ltd., Sinobull Network Technology, Financial Telecom Ltd., Ton Bo software, HCTV Financial TV channel Ltd. and Sinobull Magazine Ltd. Sinobull.com is a financial information and stock trading website. Sinobull Group and its strategic partners provide news, data and analysis to the business community and media outlets. Services include; real-time pricing, historical pricing, indicative data, analysis and electronic communications. Clients include China's investment institutions, commercial banks, government offices and agencies, corporations, and news/ media organizations. www.sinobullfinancial.com .
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward- looking statement.
SOURCE: The Hartcourt Companies, Inc.
Press Release
SOURCE: The Hartcourt Companies, Inc.
Hartcourt Reports Results for Fourth Quarter and Year end 2001
LOS ANGELES, April 12 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT; Frankfurt: 900009), www.hartcourt.com, today reported financial results for the fourth quarter and year ending December 31, 2001. Revenues for the year 2001 were $10,621,205 as compared to $1,391,666 for year 2000, a 663% increase. Revenues for the fourth quarter of 2001 were $4,680,453 as compared $3,809,526 for the third quarter of 2001 and $507,258 for the fourth quarter of 2000.
On a pro forma basis Hartcourt reported a six ($0.06) cents loss per share. These pro forma results are exclusive of non- recurring one-time gains and losses, one-time legal and professional fees associated with the acquisitions and public offering costs. Hartcourt lost eight ($0.08) cents per share for year 2001 as compared to eleven ($0.11) cents for year 2000. Hartcourt recorded one-time write down of goodwill and intangible software costs of $1,785,262 or three ($0.03) cents per share, and one-time costs in legal and professional costs of $1,300,199 or two ($0.02) cents incurred in connection with the acquisitions of the subsidiaries and public offerings. Cash flow from operating activities improved from ($2,513,094) for year 2000 to ($1,472,146) for year 2001.
Revenues for the three months ended December 31, 2001 were derived from Hartcourt's 51% owned subsidiary Elephant Talk Inc.; its 58.53% owned subsidiary Financial Telecom Limited (``FTL''); its 66.67% owned subsidiary Haike Caijin TV (HCTV); and its 85% owned subsidiary StreamingAsia.Com Ltd. (``StreamingAsia'').
``We continued to show significant progress across our operating divisions,'' said Mr. Manu Ohri, Hartcourt CFO. ``Revenues continued to expand during the fourth quarter and operating expenses continued to decline from consolidation, and strategic relocation of personnel and assets. In response to market conditions and pending accounting rule changes in 2002, Hartcourt took a conservative approach and impaired goodwill in Q4. The reduction in goodwill serves to appreciably reduce amortization expense going forward and positions the company on a shorter path to profitable operations.''
Hartcourt CEO and President, Dr. Wallace Ching stated: ``In spite of a challenging environment during 2001 we continued to record steady progress with revenue growth, execution of our business strategies, completion of key acquisitions, and the public divestiture of our ElephantTalk subsidiary. We expect Sinobull to list in Q2 and recent agreements to acquire Control Tech Centenary Group Ltd. and Kangrun Technology will add to our steadily growing network of portfolio companies and lead the way to a market listing for AI- Asia to follow. Year 2001 was a building year for our young organization, and in spite of the severe market conditions, Hartcourt now consists of five operating divisions comprised of 12 companies with 200 employees. We have had a strong start to this year in relation to revenue growth and will continue to assess operational performance across our organization as we strive to meet our goals for revenue growth and profitability during 2002.''
Hartcourt's fourth quarter 2001 accomplishments and subsequent events:
-- Dr. Wallace Ching named as CEO and President of Hartcourt, Dr. Phan
remains as Chairman
-- ElephantTalk completed the merger with Staruni Corporation and trades
under the ticker ETLK
-- AI-Asia purchases 100% of Control Tech Centenary
-- ElephantTalk signed agreements with EADS Multicom, Jitong, Great Wall
Broadband and China Netcom Corporation
-- Sinobull launches the Chinese version of Equis Meta Stock
-- Financial Telecom provides financial content for Shanghai Net Bank
cable TV
-- AI-Asia and Kangrun Technology Ltd. Sign acquisition agreement
-- Hartcourt announced the formation of Hartcourt Capital to offer
investment-banking services and launch China venture fund
About Hartcourt
The Hartcourt Companies is a holding and development enterprise that is building a broad network of Internet, media, and telecommunication companies in Greater China. In partnership with leading Chinese entrepreneurs and government-sponsored entities, Hartcourt is developing and investing in emerging technologies while building an integrated commercial framework for its subsidiaries and their partners. Hartcourt's operative business strategy is designed to facilitate a series of venture divestitures via IPO or public merger in it's four main divisions to fully realize the value of these assets for its investors; The Sinobull Financial Group, AI-Asia Inc., ElephantTalk Inc. (ETLK) and The E-learning Group.
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward-looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.
For more information ... please contact Larry Kristof, Vice President/ Lexington Enterprises Ltd., Suite 204, 910 Richards Street, Vancouver, BC V6B 3C1, Email: info@lexintonenterprises.com, Telephone: 604.484.8286, Fax: 604.484.8287.
SOURCE: The Hartcourt Companies, Inc.
Wer einen langen Atem hatte, der wird nun belohnt.
GO HRCT 900009
Sinobull, a unit of Internet investments company The Hartcourt Companies, on Friday said its new partners are offering its financial information and stock quotes via short messaging service (SMS) on mobile phones.
The partners include China Telecom, mobile phone distributor CellStar, mobile network equipment supplier UTStarcom [NASDAQ:UTSI], value-added telecom service provider HongLian95 and portal site Sina.com [NASDAQ:SINA].
Sinobull said it is already scoring a share of the revenues generated by subscribers` requests for financial data and stock reports on their mobile phones.
The company is soon to list in the U.S. Hartcourt said it plans to divest Sinobull through a reverse merger with U.S.-listed Global Telephone Communications Inc.
Hartcourt, in a separate statement, today reported full-year 2001 financial results including a 663 percent growth in revenues to $10.62 million.
As well as Sinobull, Hartcourt currently receives revenues from Elephant Talk, Financial Telecom Ltd, Haike Caijin TV and StreamingAsia.Com Ltd.
Sinobull is online at www.sinobullfinancial.com .
The Hartcourt Companies are at www.hartcourt.com .
By Adam Creed
Reported By Newsbytes.com, www.newsbytes.com .
Copyright 2002 The Washington Post Company
HARTCOURT COMPANIES INC (HRCT.OB)
Annual Report (SEC form 10KSB)
Item 6. Management's Discussion and Analysis or Plan of Operation
General
The following is a summary of certain information contained in this Report and is qualified in its entirety by the detailed information and financial statements that appear elsewhere herein. Except for the historical information contained herein, the matters set forth in this Report include forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties are detailed throughout the Report and will be further discussed from time to time in Hartcourt's periodic reports filed with the Commission. The forward-looking statements included in the Report speak only as of the date hereof.
Plan of Operation
The Hartcourt Companies, Inc. is a holding and development enterprise that is building a broad network of Internet, media, and telecommunication companies in Greater China. In partnership with leading Chinese entrepreneurs and government-sponsored entities, Hartcourt is developing and investing in emerging technologies while building an integrated commercial framework for its subsidiaries and their partners. Hartcourt's operative business strategy is designed to establish market-leading position and facilitate a series of venture divestitures via IPO or public mergers in its five main business divisions to fully realize the value of these assets for its investors. The five business
divisions are Sinobull Financial Group, Media Services Group,
Broadband/Telecommunications Group, E-learning Group and Hartcourt Capital.
Hartcourt, through a combination of expertly managed internal expansion and accretive strategic acquisitions, is executing plans to provide a sustainable, growing, diversified and profitable revenue base throughout its operations. The company is aggressively identifying and pursuing the best business opportunities available. Through a continued refinement of operational efficiencies, and increasing revenue margins, the Company is providing a clear path to profitability for its current and future businesses."
Results of Operations
Comparison of the fiscal years ended December 31, 2001 and December 31, 2000.
During 2001, Hartcourt continued its previously implemented plan to acquire profitable companies that were in established industries with a history of growth. Since mid-1999, Hartcourt has been focusing on assembling a collection of companies and services that will provide citizens of China with next generation communication services, including China-focused Internet access and financial portals, online share trading services, data broadcasting, and financial services. The Company signed underwriting agreements for the initial public offerings of shares of its two most developed investments, both of which were planned in the year 2001. On January 4, 2002, pursuant to an Agreement of Merger and Plan of Reorganization, Hartcourt's subsidiary ElephantTalk merged with Staruni Corporation, a California corporation, organized under the laws of California and listed on the over the counter on bulletin board of NASDAQ exchange. After the conclusion of the merger Hartcourt retained a majority ownership in ETCI. Hartcourt's division Sinobull Group intends to complete its merger with Global Telephone Communications, Inc. ("GTCI") in May 2002 pending approval from SEC. Hartcourt plans to eventually build all of its current operations into stand-alone entities that will also be taken public on US and/or Asian Financial markets.
To stay focused and achieve its mission to become a leading Internet company in Asia and China, Hartcourt continued to build a network of Internet companies in partnership with young Chinese enterprenuers as well as government owned entities. On May 16, 2001, Hartcourt acquired 51% ownership interest in Elephant Talk. On July 16, 2001 Hartcourt entered into a rescission agreement with UAC Trading and sold its 51% ownership interest in UAC Exchange for its original investment of $2,858,286. On August 9, 2001, Hartcourt acquired an additional 35% ownership interest in StreamingAsia Ltd. and its subsidiaries increasing its ownership interest to 85%.
The operations of Hartcourt for 2001 primarily consisted of operations of FTL (58.53% ownership interest), StreamingAsia (85% ownership interest), ElephantTalk (51% ownership interest), Sinobull (wholly-owned subsidiary), HCTV (66.7% ownership interest), AI-Asia (wholly-owned subsidiary) and Hartcourt Capital, Inc. (wholly-owned subsidairy) and its investments and advances to entities in China, Hong Kong and US. The operations of Hartcourt 2000 consisted of operations of FTL (58.53% ownership interest), StreamingAsia (50% equity investment interest), UAC Exchange (51% ownership interest) and its investment and advances to Sinobull for acquisitions in China and Hong Kong.
Net sales and cost of sales. Net sales in 2001 amounted to $10,621,205 compared to $1,391,666, consisting of sales from providing telecommunications services, sale of prepaid telephone cards, sale of financial pagers and the related Internet and telephone services. Cost of sales amounted to $7,757,779 in year 2001 compared to $1,409,364 during 2000. Cost of sales for 2001 included cost of capacity associated with the sales recognized from providing telecommunications services, costs associated with in acquiring data-feed from Honk Kong Stock Exchange and various commodities exchanges in China via TV channels and satellite transmissions, equipment rental in providing event real-time Internet broadcasting and on-demand multimedia content delivery and total web solutions. Cost of sales for the year 2000 included a write down of $150,771 of inventory relating to the financial pagers that became obsolete as FTL switched their wireless network to a new platform during 2000.
Selling, general and administrative expenses. Selling, general and administrative expenses amounted to $7,379,192 for 2001 compared to $2,985,433 for 2000. The increase is primarily due to increase in legal, professional and consulting fees amounting to $2,267,014 due to the acquisition of various entities and public offering costs, increase in compensation expense amounting to $2,072,767 due to the increase in the number of employees as a result of acquisitions, and providing for the doubtful accounts of $898,059.
Impairments. Impairments in year 2001 amounted to $1,785,262 compared to $3,065,600 in the year 2000. Impairments in 2001 resulted primarily due to Company taking conservative position and writing down the intangible software costs and goodwill of $934,884 in FTL, $742,207 in Sinobull Network; and $109,171 in StreamingAsia due to consistent operating losses in these entities and general market conditions. Impairments in 2000 resulted due to the write down of the marketable securities of $2,500,000 as a result of exchanging GoCall preferred shares, and writing down of investments by $480,871 and $565,600 in UAC Exchange and FTL.
Loss from discontinued operations. Hartcourt discontinued the operations of UAC Exchange during 2001 and incurred $377,952 in losses from discontinued operations. Hartcourt did not discontinue any operations in 2000 and therefore, no losses were incurred.
Gain on disposal of discontinued operations. Hartcourt disposed of the operations of UAC Exchange during the year and recognized a gain of $1,060,371. No operations were disposed off in the year 2000.
Gain on extinguishment of debt: During 2001, the Chairman of the Company donated 5,000,000 shares of Hartcourt to the Company. Hartcourt settled a loan payable
of $1,862,630 in exchange of 5,000,000 shares of common stock of Hartcourt. The accompanying financial statements at December 31, 2001 reflect the donation of 5,000,000 shares recorded as treasury shares and satisfaction of loan of $1,862,630.
Liquidity and Capital Resources
Hartcourt's principal capital requirements during 2001 were to fund the acquisitions of growth oriented Internet related operating companies in China and Asia. Hartcourt raised substantial funds necessary to carry out its plans of acquisitions by selling its own common shares to selected investors and bringing in business partners whose contributions included the necessary cash.
As shown in the accompanying financial statements, Hartcourt incurred net losses of $5,329,408 and 6,790,879 for the years ended December 31, 2001 and 2000, respectively. In addition, Hartcourt's working capital deficit of $3,889,779 is not adequate to meet its minimum monthly expenses. These factors, as well as negative cash flows from current operations of $984,224, Hartcourt's inability to meet debt obligations, and the need to raise additional funds to accomplish its objectives, create substantial doubt about Hartcourt's ability to continue as a going concern.
Hartcourt has taken certain restructuring steps in 2001, which in management's opinion will provide the necessary capital to continue its operations for the next five years. These steps included: 1) the settlement of certain matters of litigation and disputes; 2) signed a Investment Agreement with Swartz Private Equity, LLC, who agreed to purchase from time to time, up to $35,000,000 Hartcourt shares of common stock. The Investment Agreement with Swartz is still subject to the approval of SEC, 3) raised $9,858,277 in cash through issuance of its common shares since the beginning of the year 2000 through December 31, 2001.
Operating activities. Net cash used in current operating activities decreased to $984,224 during the year 2001 compared to net cash used in operating activities of $2,513,094 during the year 2000. This is primarily due to the fact that in 2001, Hartcourt recorded a gain of $1,862,630 due to extinguishment of a loan payable, providing for $1,478,313 in depreciation and amortization of intangible software casts, write down of note receivable of $329,171, impairments due to write down of goodwill and intangible software costs amounting to $1,785,262, increase in accounts receivable of 143,278, decrease in inventory and prepaid expenses amounting to $136,575 and $543,846, respectively, and increase in accounts payable and accrued expenses of $1,811,444. During 2000, Hartcourt recorded impairments due to write down of the marketable securities of $2,500,000 as a result of exchanging GoCall preferred shares, writing down the investments in UAC and FTL by $480,871 and $565,600, respectively, providing for doubtful accounts of $767,586, write down of the wireless network assets amounting to $193,905 as FTL switched its wireless network structure to a new platform during 2000. Net cash used in discontinuing operations amounted to $478,327 during 2001 compared to zero in 2000.
Investing activities. Net cash used in investing activities amounted to $338,950 during 2001 compared to $4,589,125 during 2000. This is mainly due to the payment of $823,585 in notes receivable, purchase of property and equipment of $51,721, offset by cash of $690,202 acquired in acquisitions of ElephantTalk,
Sinobull Group and StreamingAsia. Net Cash used in investing activities in 2000 was due to investment in eMPACT of $300,000, purchases of property and equipment of $347,051, and advances to Sinobull for $2,819,884 for acquisitions during 2000.
Financing activities. Net cash provided by financing activities amounted to $1,984,912 in 2001 compared to net cash provided by financing activities of $7,174,155 during 2000. Hartcourt raised $1,988,501 from issuance of common stock during 2001, made payments on loans due to related parties amounting to $865,048, made payments of shareholders loans of $999,436, and proceeds of long tern debt of $1,619,807. During 2000, Hartcourt raised $7,869,776 from issuance of common shares that was partially offset by $81,094 $695,621 in payments to related parties and $614,527 payments on long term debt.. The main financing sources of Hartcourt are the line of credit from the bank, issuance of long term debt, proceeds from issuance of its common stock, and proceeds on exercise of its options and warrants.
The ability of Hartcourt to continue as a going concern is dependent on its success in fulfilling its plan.