HARTCOURT WKN 900009...ein brodelnder Vulkan...
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HARTCOURT COMPANIES INC (HRCT.OB)
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 four business divisions are Sinobull Financial Group, Media Services 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, 2002 and December 31, 2001.
During 2002, 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 Elephant Talk Limited
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. Prior to the conclusion of the merger, Hartcourt acquired additional equity in Elephant Talk Limited and retained a 51.7% ownership in ETCI upon conclusion of the merger. 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.
The operations of Hartcourt for 2002 primarily consisted of operations of FTL (58.53% ownership interest), StreamingAsia (85% ownership interest), Sinobull (wholly-owned subsidiary), AI-Asia (wholly-owned subsidiary) and Hartcourt Capital, Inc. (wholly-owned subsidiary) and its investments and advances to entities in China, Hong Kong and US. ElephantTalk (51% ownership interest) and HCTV (66.7% ownership interest) were disposed-off as of September 30, 2002 and June 30 2002 respectively. 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 subsidiary) and its investments and advances to entities in China, Hong Kong and US.
Net sales and cost of sales. The Company recorded net sales of $1,137,011 in year 2002, compared to $10,621,205 in 2001. Net sales primarily consisted of sales of wireless pagers, rental of equipment, and the related Internet and telephone services provided by FTL; real-time financial data services provided by Sinobull Financial Information using a satellite network to transmit data specializes in stock quotes, futures, indexes and commodities to its customers in China; and StreamingAsia providing web hosting and software development services in audio and video delivery or streaming solutions. The significant drop in sales of 2002 when compared to 2001 is mainly due to the fact that Hartcourt has disposed ETLK of in October 2002. The sales of Elephant Talk covered 72% more of the total sales in 2001. Moreover, the financial sector has been affected badly by the stock market downturn. As a result, most banks and brokerage houses have reduced their spending on data services, causing additional price-cutting among competitors. Cost of sales 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. The increase in operating margin is mainly due to the higher margin in financial sector, compared to lower margin in telecommunication services rendered by Elephant Talk only included in 2001.
Selling, general and administrative expenses. SG&A expenses amounted to $2,774,011 for 2002 compared to $7,379,192. Apart from dispose off subsidiaries in 2002, the decrease in SG&A is primarily attributed to reduction in consulting, legal and administrative costs incurred in 2002 as compared to that in 2001. Hartcourt completed the acquisition of Elephant Talk Limited in May 2001, which required significant legal and administrative expense to complete the acquisition. Hartcourt has taken drastic cost cutting measures and deliberately slowed down the development process of all projects on hand. Included in the SG&A expenses in 2002, the Company made bad debt provision amounted to $1,115,963 against these doubtful accounts for prudent purpose. The Company recorded an impairment of $1,563,040 during 2002 to write down certain intangible assets and its investments in Sinobull Group, FTL Group and Streaming
Asia Group. Such expense was not included in the SG&A for the year ended 2002. Hartcourt continued to eliminate less productive units, reduced consulting and legal costs associated due to restructuring of the Company's business in Hong Kong and China.
Impairments. Impairments in year 2002 amounted to $1,563,040 compared to $1,785,262 in the year 2001. As of 31 December 2002, except for Sinobull Group, Hartcourt wrote-off all the goodwill on acquisition of subsidiaries.
Gain on disposal of discontinued operations. Gain on disposal of discontinued operation in 2002 consist of the realized gain of $1,284,048 for disposal of ETCI, and the gain of $659,653 for disposal of HCTV and Topomedia. Hartcourt disposed of the operations of UAC Exchange in 2001 and recognized a gain of $1,060,371.
Loss from discontinued operations. Hartcourt discontinued the operation of ETLK, HCTV and Topomedia during 2002 and incurred $1,020,252 in losses from discontinued operations. The loss in 2001 represents the losses from discontinued operation of UAC exchange.
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 2002 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 restricted common shares to accredited investors and bringing in business partners whose contributions included the necessary cash.
As shown in the accompanying financial statements, Hartcourt incurred net losses of $2,550,002 and $5,329,408 for the years ended December 31, 2002 and 2001, respectively. In addition, Hartcourt's working capital deficit of $2,155,058 is not adequate to meet its minimum monthly expenses. These factors, as well as negative cash flows from current operations of $1,852,669, 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, which in the management's opinion will provide the necessary capital to continue its operations. These steps included: 1) the settlement of certain matters of litigation and disputes; and 2) signed stock sale agreements with accredited investors to raise in excess of $1,000,000. The Company plans to actively seek funding sources once Hartcourt is able to discontinue and dispose-off all non-profitable assets by selling or spinning-off or restructuring to minimize loss or liability.
Operating activities. The net cash used by operating activities in 2002 amounted to $1,852,669 compared to $1,462,551 in 2001. The net increase in operating activities resulted primarily due to more payments on settle of liabilities in
2002 compared to 2001. It resulted also due to the increase of minority interest offset by increase in depreciation and amortization, increase in shares issued in lieu of compensation and services and other changes in operating activities. In addition, the increase of the cash used in discontinued operations also contributed much to the operational cash flow.
Investing activities. Net cash obtained in investing activities amounted to $2,538,962 during 2002 compared to net cash used of $338,950 during 2001. Net cash flow in during 2002 primarily resulted from the proceeds on notes receivable of $1,039,389 and the proceeds from disposal of investment of $1,597,450. Net cash used in investing activities in 2001 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.
Financing activities. Net cash used by financing activities amounted to $878,554 in 2002 compared to net cash provided by financing activities of $1,984,912 during 2001. Hartcourt paid $7,986 for the loans due to related parties, paid $265,691 in net from issuance of common stock and adjustment of share price during 2002, proceeds from shareholders' loan $139,865, made payments on factor $198,205, made payments on long-term debt of $433,299, and made payments on capital lease of $113,238. During 2001, Hartcourt raised $1,988,501 from issuance of common stock, 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.
The ability of Hartcourt to continue as a going concern is still dependent on its success in obtaining additional financing and fulfilling its plan of restructuring as outlined above.
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Hartcourt Sold StreamingAsia to Hong Kong Investment Group
LOS ANGELES, Jul 1, 2003 /PRNewswire-FirstCall via COMTEX/ -- The Hartcourt
Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009),
http://www.hartcourt.com /, today announced that it has completed the sale of
its interest in StreamingAsia Group to Yee Fu Laser Company Limited, a company
controlled by Venetian Holdings Ltd, a privately-held investment fund with major
stakes in publishing and real estate industries in Hong Kong. StreamingAsia
Group is composed of StreamingAsia Limited, Logic Space Asia Ltd. and Syndicate
Asia Ltd.
Due to the severe recession of Hong Kong high-tech industry, StreamingAsia has
suspended its operation since June 2002. The acquisition by Yee Fu will give the
company a second chance to implement its expansion plan to provide service to
Chinese enterprises in the Pearl Delta region of Southern China. Hartcourt holds
an option to purchase up to 49 percent of the company for a nominal fee in the
next 36 months, should the company be successful in its effort to go IPO.
About Hartcourt
The Hartcourt Companies, Inc. is an investment holding and corporate development
company focusing on the acquisition of private companies within high-growth
industries in China with the goal of building stronger businesses. Hartcourt's
business strategy is to bring together a group of complementary companies, add
substantial value in terms of financial restructuring, strategic planning and
corporate governance to enable these subsidiaries to fully realize the value of
their assets and become public companies. Hartcourt has strategic investments
and operating management control in 3 leading companies in the area of IT
product marketing, retail, and distribution. Detailed information on Hartcourt
can be obtained via the company's Web site: www.hartcourt.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 Acquires ZhongNan Group, a Major PC Distributor in Wenzhou
Monday July 7, 5:59 am ET
Four Recent Acquisitions Had Total Revenue of $181 Million and Net Profit of $3.1 Million in 2002
LOS ANGELES, July 7 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009), www.hartcourt.com , today announced that it has signed a definitive agreement to purchase 51 percent of Wenzhou ZhongNan Computer Group ("ZhongNan"), www.zncomputer.com.cn , a major PC distributor and retailer based in Wenzhou, China.
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The purchase price for the 51 percent acquisition is RMB34.46 Million (US$4.18 Million) payable in 7,013,951 restricted common shares of Hartcourt priced at US$0.5955 per share.
In 2002, ZhongNan recorded sale revenue of RMB 297 Million (US$36 Million) and net profit of RMB5 Million (US$0.6 Million). It is one of the top PC distributors in Wenzhou and has the same business model like HuaQing, GuoWei and NewHuaSun. The city of Wenzhou (population: 8 Million) located 300 miles south of Shanghai, has one of the highest GDP per capita in China.
ZhongNan, founded in 1996, has 202 employees. It owns distribution warehouses and operates 16 retail stores in Wenzhou and surrounding areas, completed with service centers. The stores provide customers with latest computer hardware, software, technical services and other digital products.
ZhongNan is the fourth acquisition of Hartcourt in the IT product distribution business. In 2002, the combined revenue of 4 entities was RMB$1,493 Million (US$181 Million) and the net profit was RMB$25 Million (US$3.1 Million). In the first four months of 2003, ZhongNan recorded a sale of US$16.2 Million and net profit of US$0.24 Million.
China has experienced explosive growth in PC sales for the last 10 years from 670,000 PCs sold in 1994 to 7,260,000 in 2001. IDC predicts China's PC sales will grow at 18-22% for the next 5 years, with sales reaching 19,800,000 PCs in 2006 (global PC sales is 131,800,000 in 2002 vs. China's 9,280,000). Experts believe the huge market potential will come from the low PC penetration in home uses (5% in China compared to 49% in the US), as well as demand from technology upgrades and adoption of information technology by SMEs (small medium enterprises) and government sectors.
More details on these subsidiaries and the PC market in China could be obtained from Hartcourt Website, www.hartcourt.com or ZhongNan website, www.zncomputer.com.cn .
Mr. Hu JianGuo, Chairman and President of ZhongNan, comments, "We are glad to follow the footsteps of HuaQing, NewHuaSun and GuoWei to create a major PC distribution network under Hartcourt umbrella. Besides improving our profit margin with the combined purchasing and advertising power, all of us will be able to expand faster thanks to access to international capital sources. As more PC distribution companies are waiting to join us, our onward momentum could bring forth a new force in China PC market."
About Hartcourt
The Hartcourt Companies, Inc. is an investment holding and developing company specializing in the acquisition and development of private companies within high-growth industries in China. Recent acquisitions of Hartcourt included 4 major PC marketers in China that have a combined revenue of US$181 Million and net profit of $US 3.1 Million in 2002. Detailed information on Hartcourt can be obtained via the company's Web site: www.hartcourt.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.
Gruß
Trader
Übrigens entschuldigt mich, dass ich momentan sehr passiv im Forum bin....wird sich alles nach dem 23. Juli ändern!
Glaubt an diesen Wert! Schaut euch beispielsweise auch mal den Nordasia.com fonds an...der macht mir auch eine riesige Freude!
so long!
hartmoney
HARTCOURT COMPANIES INC. SHARES DL -, 001 Frankfurt 900009 0,61 +0,06 +10,91% 173.347,40 19:20/08.07.
Berlin-Bremen 900009 0,55 G +0,02 +3,77% -- 09:10/08.07.
XETRA 900009 0,45 -0,03 -6,25% 360,00 13:28/07.07.
Das geht ja schon wieder gut los!
:-))
hartmoneygrüsse @ all
Monday July 7, 5:59 am ET
Four Recent Acquisitions Had Total Revenue of $181 Million and Net Profit of $3.1 Million in 2002
LOS ANGELES, July 7 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009), www.hartcourt.com , today announced that it has signed a definitive agreement to purchase 51 percent of Wenzhou ZhongNan Computer Group ("ZhongNan"), www.zncomputer.com.cn , a major PC distributor and retailer based in Wenzhou, China.
ADVERTISEMENT
The purchase price for the 51 percent acquisition is RMB34.46 Million (US$4.18 Million) payable in 7,013,951 restricted common shares of Hartcourt priced at US$0.5955 per share.
In 2002, ZhongNan recorded sale revenue of RMB 297 Million (US$36 Million) and net profit of RMB5 Million (US$0.6 Million). It is one of the top PC distributors in Wenzhou and has the same business model like HuaQing, GuoWei and NewHuaSun. The city of Wenzhou (population: 8 Million) located 300 miles south of Shanghai, has one of the highest GDP per capita in China.
ZhongNan, founded in 1996, has 202 employees. It owns distribution warehouses and operates 16 retail stores in Wenzhou and surrounding areas, completed with service centers. The stores provide customers with latest computer hardware, software, technical services and other digital products.
ZhongNan is the fourth acquisition of Hartcourt in the IT product distribution business. In 2002, the combined revenue of 4 entities was RMB$1,493 Million (US$181 Million) and the net profit was RMB$25 Million (US$3.1 Million). In the first four months of 2003, ZhongNan recorded a sale of US$16.2 Million and net profit of US$0.24 Million.
China has experienced explosive growth in PC sales for the last 10 years from 670,000 PCs sold in 1994 to 7,260,000 in 2001. IDC predicts China's PC sales will grow at 18-22% for the next 5 years, with sales reaching 19,800,000 PCs in 2006 (global PC sales is 131,800,000 in 2002 vs. China's 9,280,000). Experts believe the huge market potential will come from the low PC penetration in home uses (5% in China compared to 49% in the US), as well as demand from technology upgrades and adoption of information technology by SMEs (small medium enterprises) and government sectors.
More details on these subsidiaries and the PC market in China could be obtained from Hartcourt Website, www.hartcourt.com or ZhongNan website, www.zncomputer.com.cn .
Mr. Hu JianGuo, Chairman and President of ZhongNan, comments, "We are glad to follow the footsteps of HuaQing, NewHuaSun and GuoWei to create a major PC distribution network under Hartcourt umbrella. Besides improving our profit margin with the combined purchasing and advertising power, all of us will be able to expand faster thanks to access to international capital sources. As more PC distribution companies are waiting to join us, our onward momentum could bring forth a new force in China PC market."
HARTCOURT COMPANIES INC. SHARES DL -, 001 Frankfurt 900009 0,59 +0,00 +0,00% 30.793,80 14:55/16.07.
Berlin-Bremen 900009 0,57 G +0,00 +0,00% -- 09:05/16.07.
XETRA 900009 0,57 +0,12 +26,67% 114,00 13:28/16.07.
Hartcourt Purchased Additional 6 Percent of HuaQing
Monday July 14, 8:09 am ET
LOS ANGELES, July 14 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009), www.hartcourt.com , today announced that it has purchased an additional 6 percent of all outstanding shares of HuaQing Corporation Development Co. Ltd. and HuaQing Economics Development Co. Ltd., a major IT product marketer based in Shanghai, China. Together with the 45 percent purchased on Feb 14th, 2003, Hartcourt will own 51 percent of HuaQing Group, www.shanghaihuaqing.com .
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The purchase price for the 6 percent of total outstanding shares is 7.08 Million RMB (US$0.86 Million) payable in 1,340,455 restricted common shares of Hartcourt, calculated at $0.64 a share.
In Q1 of 2003, HuaQing recorded sale revenue of 103 Million RMB (US$12.5 Million) and a net profit of 1.1 Million RMB (US$130,000). It was voted by IDG's Computer World (China) in 2002 as one of the Top 100 Computer Marketing Companies in China. HuaQing, founded in 1992 in Shanghai, has developed into a well-respected IT marketing and distribution company and a key marketing partner for Samsung Electronics in China.
Mr. Li ZhengZheng, Chairman and President of HuaQing comments: "Chinabyte, the leading IT magazine, described Hartcourt as 'China's Emerging PC Marketing Leader in China.' Apparently, our shareholders and management agreed with this assessment. We are proud to be under Hartcourt's leadership to expand aggressively our business operation, in coordination with other subsidiaries. This is also a vote of confidence in HuaQing as a result of our performance and growth despite SARS epidemic."
China has experienced explosive growth in PC sales for the last 10 years from 670,000 PC units sold in 1994 to about 10,310,000 units in 2003. IDC ( www.idc.com ) predicts China's PC sales will grow at 18-22% for the next 5 years, with sales reaching 19,800,000 PCs in 2006. Analysts with Gartner research firm ( www.gartner.com ) believe continuing economic growth, government IT spending and a maturing home PC market will be the three major driving forces for steady growth. Gartner pointed out that PCs are high on the lists of "must haves" after such basics as TV sets, refrigerators and washing machines for urban Chinese.
Shareholder Q&A FOR JULY 03
Q. How does Hartcourt get around the PRC's restriction of foreign ownership of Chinese companies only being a maximum 49%?
A. Restriction doesn’t apply to all industries and it is in constant revision. As for the IT distribution industry, PRC government allows, under WTO commitment, 50% foreign ownership by the first WTO anniversary on 11th Dec 2002, controlling foreign ownership no later than 11th Dec 2003, and 100% foreign ownership no later than 11th Dec 2004.
Q. Would you comment on the HuaQing first quarter revenues/earnings? Are they not substantially lower than expected?
A. Please note that IT product distribution is seasonal and the best quarter is usually Q4. We only consolidated one month of HuaQing in Q1, so there should be adjustments for annualized sales and profit.
Q. Please post Chinabyte's write up or link in English about HRCT as it is always nice to read from an outside source. "Chinabyte”, the leading IT magazine, described Hartcourt as 'China's Emerging PC Marketing Leader in China."
A. We will translate the article and post it on our web site for those who are interested.
Q. Will there be an early PR about Q2 numbers B/4 Aug 15th and does management still expect those numbers to be good for shareholders?
A. We will file Q2 no later than 15th August. Of course, there will be a PR about Q2 results when we file.
Q. Assuming Hartcourt will show terrific growth and profits for Q2 and Q3, will our listing on the OTC hold any institutions or funds back from investing in Hartcourt?
A. We think a sustainable strong financial performance will attract institutional investors, even if we are on OTC exchange.
Q. How close to completion is the Sinobull/Genius merger?
A. We expect the deal will be completed within the current quarter.
Q. Any chance HRCT getting off OTC BB? Provided HRCT does have plans to list on another exchange, which exchange will they target?
A. We plan to apply for listing on other exchanges, domestic and overseas, in 2004.
Q. What prevents the Hartcourt Companies from applying for a listing on another exchange (other than share price)? If there is an "uncontrollable" variable that has prevented HRCT from getting off of the OTC BB, what is the variable?
A. We are not aware of any variables.
Q. Is HRCT considered a "China company" or an "American-based Company" doing business in China?
A. Hartcourt is a US listed company with its main operations in China.
Q. Does management expect to get the 2 QTR earnings in to the SEC EARLY and not wait till August 15th at 4 PM, thus not making the shareholders sweat another E on the end of our ticker symbol??
A. We have learned from our mistakes and we will file as early as possible.
Q. On Hartcourt purchased additional 6 percent of HuaQing: My question is this: How does 1/8 of the stock (i.e. 6/45) cost over 1/3 (i.e. 2.2 mil/860 K) the original purchase price? 45% for roughly $2.2 Million in stock and 6% for roughly $860K in stock. All this for only 60K in profit?
A. As expressed earlier, the IT product distribution business is seasonal, so we cannot base the valuation on profit of one quarter. Besides, the additional 6% is very strategic for Hartcourt as we shall have absolute control without requiring additional proxy. Actually, due to the appreciation of our share price, the number of shares paid for the controlling 6 percent are 75 percent less than the original number of shares paid for the 45 percent.
Q. How far along is the GTI merger with Sinobull? Completed?...Since Stephen Tang is a big part of developing Sinobull will he stay with Hartcourt or will he move on with the newly formed company?
A. Mr. Stephen Tang has served as Hartcourt director for the last 2 year and he is nominated again for 2003/04 as an independent director. He’s not involved in daily operations of Sinobull.
Q. If/When HRCT decides to move to a bigger exchange, are they leaning toward reverse merger or the application route to gain access?
A. We will consider all available options when the time comes.
Q. The Business strategy says, "Hartcourt will continue to evaluate the growth prospects for each specific industry sector on an on-going basis in order to determine the optimal holdings of any its portfolio company as well as to refine its acquisition strategy going forward". What other specific industries beside PC sales is HRCT currently looking to acquire companies? Has the process gone past the PC plan or will HRCT remains focused on only one direction for the present? How far along is HRCT acquisition plan? 25 percent? 50 percent? With the speed at which HRCT has acquired the first four companies, how long do you believe it will take to finish the acquisition process?
A. We will be focusing on the current line of business until we reach the market position of being The Top Three in China. We hope to achieve this objective by 2005. As an investment holding and developing company, we have to evaluate our strategy from different perspective and market condition to maximize returns to shareholders.
Q. With SARS subsiding and people going back to a normal routine, business wise how does the advertising side of HRCT revenues factor percentage wise into their earnings. Has this picked up substantially and has HRCT advertised itself in China with the 4 recent acquisitions so as to let the masses know of itself and its growth and future as to becoming China's #1 PC distributor.
A. Hartcourt doesn’t advertise to consumers. However, all of our subsidiaries advertise directly to the consumers regularly. On our PR campaign in China, Hartcourt will host a luncheon celebrating our 20th Anniversary on 7th August 2003 at the Four Seasons Hotel in Shanghai. Over 150 dignitaries in government, business and media are invited.
Q. Is HRCT looking to fill management positions? Have they been successful? What positions do they need to fill?
A. We are currently looking for a experienced world-class CFO to strengthen our internal audit control and set higher standard for corporate governance. We have added a few more executive positions in Shanghai, including an in-house legal counsel.
Q. Do you find that doors are opening up for HRCT more easily now that HRCT has broken through and completed these acquisitions? Or is it still a very difficult process to deal with the government and endless regulations?
A. Our recent acquisitions have attracted plenty of attentions in the industry and given us excellent credibility. We plan to leverage these advantages to complete our objective earlier than projected. However, there will always be difficulties and challenges on all fronts.
Q. If you are to rate HRCT success for 2003 on a scale of one to ten how would you rate it? Everything included top to bottom.
A. We will leave the rating to you, our shareholders.
Q. Is there any one problem area that you think HRCT could do better at in the future? Whether it involves deal making, investor perception, expansion problem for the new stores, if any...
A. We don’t think that we will focus on improving just “one area”. Hartcourt has to be a first-class operation in all aspect. It will be a long struggle filled with obstacles and challenges. However, we think the future is very exciting for us. And we believe that you will be just as excited.
Q. How long is your personal timeline to make HRCT the company you want it to be? The day where you can finally take a step back and say, "this is what we imagined HRCT could be when we first started"…
A. Success is a life long struggle. We will always strive to surpass and reset our goals and challenges. We plan to be The Top Three in our current business in 3 years. Afterwards, there will be other mountain top to be conquered.
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.
Shareholder Q&A FOR JULY 03
Q. How does Hartcourt get around the PRC's restriction of foreign ownership of Chinese companies only being a maximum 49%?
A. Restriction doesn’t apply to all industries and it is in constant revision. As for the IT distribution industry, PRC government allows, under WTO commitment, 50% foreign ownership by the first WTO anniversary on 11th Dec 2002, controlling foreign ownership no later than 11th Dec 2003, and 100% foreign ownership no later than 11th Dec 2004.
Q. Would you comment on the HuaQing first quarter revenues/earnings? Are they not substantially lower than expected?
A. Please note that IT product distribution is seasonal and the best quarter is usually Q4. We only consolidated one month of HuaQing in Q1, so there should be adjustments for annualized sales and profit.
Q. Please post Chinabyte's write up or link in English about HRCT as it is always nice to read from an outside source. "Chinabyte”, the leading IT magazine, described Hartcourt as 'China's Emerging PC Marketing Leader in China."
A. We will translate the article and post it on our web site for those who are interested.
Q. Will there be an early PR about Q2 numbers B/4 Aug 15th and does management still expect those numbers to be good for shareholders?
A. We will file Q2 no later than 15th August. Of course, there will be a PR about Q2 results when we file.
Q. Assuming Hartcourt will show terrific growth and profits for Q2 and Q3, will our listing on the OTC hold any institutions or funds back from investing in Hartcourt?
A. We think a sustainable strong financial performance will attract institutional investors, even if we are on OTC exchange.
Q. How close to completion is the Sinobull/Genius merger?
A. We expect the deal will be completed within the current quarter.
Q. Any chance HRCT getting off OTC BB? Provided HRCT does have plans to list on another exchange, which exchange will they target?
A. We plan to apply for listing on other exchanges, domestic and overseas, in 2004.
Q. What prevents the Hartcourt Companies from applying for a listing on another exchange (other than share price)? If there is an "uncontrollable" variable that has prevented HRCT from getting off of the OTC BB, what is the variable?
A. We are not aware of any variables.
Q. Is HRCT considered a "China company" or an "American-based Company" doing business in China?
A. Hartcourt is a US listed company with its main operations in China.
Q. Does management expect to get the 2 QTR earnings in to the SEC EARLY and not wait till August 15th at 4 PM, thus not making the shareholders sweat another E on the end of our ticker symbol??
A. We have learned from our mistakes and we will file as early as possible.
Q. On Hartcourt purchased additional 6 percent of HuaQing: My question is this: How does 1/8 of the stock (i.e. 6/45) cost over 1/3 (i.e. 2.2 mil/860 K) the original purchase price? 45% for roughly $2.2 Million in stock and 6% for roughly $860K in stock. All this for only 60K in profit?
A. As expressed earlier, the IT product distribution business is seasonal, so we cannot base the valuation on profit of one quarter. Besides, the additional 6% is very strategic for Hartcourt as we shall have absolute control without requiring additional proxy. Actually, due to the appreciation of our share price, the number of shares paid for the controlling 6 percent are 75 percent less than the original number of shares paid for the 45 percent.
Q. How far along is the GTI merger with Sinobull? Completed?...Since Stephen Tang is a big part of developing Sinobull will he stay with Hartcourt or will he move on with the newly formed company?
A. Mr. Stephen Tang has served as Hartcourt director for the last 2 year and he is nominated again for 2003/04 as an independent director. He’s not involved in daily operations of Sinobull.
Q. If/When HRCT decides to move to a bigger exchange, are they leaning toward reverse merger or the application route to gain access?
A. We will consider all available options when the time comes.
Q. The Business strategy says, "Hartcourt will continue to evaluate the growth prospects for each specific industry sector on an on-going basis in order to determine the optimal holdings of any its portfolio company as well as to refine its acquisition strategy going forward". What other specific industries beside PC sales is HRCT currently looking to acquire companies? Has the process gone past the PC plan or will HRCT remains focused on only one direction for the present? How far along is HRCT acquisition plan? 25 percent? 50 percent? With the speed at which HRCT has acquired the first four companies, how long do you believe it will take to finish the acquisition process?
A. We will be focusing on the current line of business until we reach the market position of being The Top Three in China. We hope to achieve this objective by 2005. As an investment holding and developing company, we have to evaluate our strategy from different perspective and market condition to maximize returns to shareholders.
Q. With SARS subsiding and people going back to a normal routine, business wise how does the advertising side of HRCT revenues factor percentage wise into their earnings. Has this picked up substantially and has HRCT advertised itself in China with the 4 recent acquisitions so as to let the masses know of itself and its growth and future as to becoming China's #1 PC distributor.
A. Hartcourt doesn’t advertise to consumers. However, all of our subsidiaries advertise directly to the consumers regularly. On our PR campaign in China, Hartcourt will host a luncheon celebrating our 20th Anniversary on 7th August 2003 at the Four Seasons Hotel in Shanghai. Over 150 dignitaries in government, business and media are invited.
Q. Is HRCT looking to fill management positions? Have they been successful? What positions do they need to fill?
A. We are currently looking for a experienced world-class CFO to strengthen our internal audit control and set higher standard for corporate governance. We have added a few more executive positions in Shanghai, including an in-house legal counsel.
Q. Do you find that doors are opening up for HRCT more easily now that HRCT has broken through and completed these acquisitions? Or is it still a very difficult process to deal with the government and endless regulations?
A. Our recent acquisitions have attracted plenty of attentions in the industry and given us excellent credibility. We plan to leverage these advantages to complete our objective earlier than projected. However, there will always be difficulties and challenges on all fronts.
Q. If you are to rate HRCT success for 2003 on a scale of one to ten how would you rate it? Everything included top to bottom.
A. We will leave the rating to you, our shareholders.
Q. Is there any one problem area that you think HRCT could do better at in the future? Whether it involves deal making, investor perception, expansion problem for the new stores, if any...
A. We don’t think that we will focus on improving just “one area”. Hartcourt has to be a first-class operation in all aspect. It will be a long struggle filled with obstacles and challenges. However, we think the future is very exciting for us. And we believe that you will be just as excited.
Q. How long is your personal timeline to make HRCT the company you want it to be? The day where you can finally take a step back and say, "this is what we imagined HRCT could be when we first started"…
A. Success is a life long struggle. We will always strive to surpass and reset our goals and challenges. We plan to be The Top Three in our current business in 3 years. Afterwards, there will be other mountain top to be conquered.
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.
1 Woche 1 Monat 3 Monate 1 Jahr 3 Jahre 5 Jahre
Performance -1,82% 10,20% 25,58% 730,77% -85,10% --
Hoch 0,58 0,63 0,87 0,87 4,50 --
Tief 0,54 0,46 0,39 0,04 0,04 --
Volatilität 54,02 93,18 168,86 170,34 154,43 --
5 Tage 30 Tage 100 Tage 250 Tage
Ø-Preis 0,56 0,53 0,39 0,20
Ø-Volumen 22.186,58 49.595,95 108.328,30 44.417,74
Kennzahlen relativ zum Vergleichsindex *
1 Woche 1 Monat 3 Monate 1 Jahr 3 Jahre 5 Jahre
rel. Performance -5,80% 4,22% 9,88% +735,27% -33,05% --
Korrelation -0,35 0,50 0,40 0,18 0,20 --
Beta -0,98 1,88 2,55 0,72 0,90 --
* Vergleichsindex: DAX
Date Open High Low Last Change Volume % Change
07/29/03 0.63 0.68 0.63 0.68 +0.04 148500 +5.43 %
Composite Indicator
Trend Spotter (TM) Hold
Short Term Indicators
7 Day Average Directional Indicator Sell
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Sell
20 Day Bollinger Bands Hold
Short Term Indicators Average: - Hold
20-Day Average Volume - 411650
Medium Term Indicators
40 Day Commodity Channel Index Hold
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Sell
Medium Term Indicators Average: 25% - Buy
50-Day Average Volume - 888736
Long Term Indicators
60 Day Commodity Channel Index Hold
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 67% - Buy
100-Day Average Volume - 933973
Overall Average: 24% - Buy
Price Support Pivot Point Resistance
0.64 0.59 0.63 0.67
Börsenplatz Frankfurt
Währung EURO
Datum 29.07.03
Zeit
Aktuell 0,59 18:29
Diff. Vortag +9,26%
Volumen 69.225,07
Geld 0,59 18:33
Geld Vol. --
Brief 0,60 18:33
Brief Vol. --
Spread 0,01
Schluß
Vortag 0,54
Eröffnung 0,57
Hoch 0,59
Tief 0,57
Ich habe auf jeden Fall schon 63% plus, auch wenn der Wert sich nicht verändert (nach oben)
Avantgarde
Börse Währung Datum Uhrzeit Akt.
Kurs Veränderung zum Vortag Tages 52-Wochen
abs. in % Tief Hoch Tief Hoch
Frankfurt EUR 30.07.2003 09:24 0,65 +0,05 +8,33% 0,65 0,65 0,045 0,98
Jungs, dat geht wieder weiter...bin weiterhin auch LANGFRISTIG sehr optimistisch!