Here's a lot more than 3 reasons for HRCT to be successful IMHO, OC. The 4th quarter earnings report will just be the cherry on top. For all this, you should be banished to go back under your rock forever.... not just a measly week:
a)HuaQing - First acquisition for Hartcourt in the PC sales and Distribution field ..ShangHai HuaQing company has developed into a leading provider of IT, electronics and digital components, logistics management and other value added services.. Strategic Partnerships -Strong relationships with PC product makers, Sony, Intel, Phillips, Kingston etc... Sole distributor agent of Samsung Monitors in Shanghai.. http://www.shanghaihuaqing.com/
**1)Pengyang - Recent acquisition by HuaQing ...Located in Shanghai, Pengyang is a major notebook retailer in Shanghai..The company is a major distributor and retailer for HP, IBM, BENQ, ASUS and Compower..The stores also carry notebooks and accessories of Samsung, Fujitsu, Compaq, Toshiba, and Intel. http://www.shtip.com.cn/summit/default.asp **Sub of HuaQing
b)GuoWei - With over 180 employees, the company owns and operates 13 retail stores that cover 11 districts of Shanghai, Guowei Science and Technology Ltd. has been involved in the area of computer components sales, software development and design of integrated circuit and has become one of the dominant powers in China's computer industry. Awards - The Best Medium & Small Technology Enterprises Award in Shanghai, 2000 The Best Metropolitan Agent for Gigabyte sales, 2000 Excellent Agent for Philips Monitor sales, 2000 The Best Agent for Intel Main Board sales in China, 2000 The Champion of Intel Main Board sales in Asia & Pacific Area, 2001 Excellent Agent for MSI products sales, 2001 http://www.guowei.com.cn/
c)ZhongNan - With well over 30% dominance of the local market, ZhongNan Group has developed into a well-trusted and respected specialty computer retail and marketing company with partnerships with many international and domestic brands. Nearing 200 employees, the company owns and operates 16 retail stores that cover all major cities in Zhejiang Province, including Hangzhou, Wenzhou, Taizhou, Ningbo, Jinhua, etc. Zhongnan has established strategically partnerships with many world leading IT manufacturers and has become the "partner of choice" for many domestic and international brands including IBM, HP, DELL, Intel, Philips, Sony, Samsung, Legend, Asus, MSI, Haier, Hedy, etc. http://www.zncomputer.com.cn/
d)NewHuaSun - Guangdong NewHuaSun Computer Co. With over 80 employees, the company owns and operates 5 flagship stores, and has over 60 independently owned franchised stores, and with subsidiary offices located in City of Shenzhen (Special Economic Region), City of Shantou (Guangdong Province) City of Changsha (capital of Hunan Province), City of Nanning (capital of Guangxi Province) and City of Haikou (capital of Hainan Province). The company was voted by http://www.pconline.com.cn/ as one of the top marketer in Southern China with the one of the largest market share in computer monitor marketing at 26.7% Over the last 5 years, the company has established very strong partner relationships with one of the leading international IT companies - Samsung Electronics, as its exclusive distributor of Samsung computer monitors, which is currently the best selling monitors in China, for Southern China. http://www.samsungmonitors.com.cn/ In addition the company markets other computer components, laptops and digital products from Samsung and is at the present the largest general distributor for Samsung computer products in China. The company has over 300 distributors and 500 corporate clients across industries including China Mobile, China Southern Airlines, Sinopec, Guangzhou Honda Auto, China Merchant Bank, ZTE, and many leading China local listed companies, as well as many government departments and agencies. http://www.newhuasun.com.cn/
e)Challenger Group - Beijing Challenger Group Through its partnership with IBM, Challenger aggressively expanded in the late 1990's and has become one of the leading companies in the IT distribution industry in Northern China. Its main products and services including IBM Unix Server, NT Server, laptop, desktop PC, storage devices, and corporate IT consulting services. The company currently has 130 employees, owns and operates five companies including Wanzhong Info Tech, Sihai Lanxiang Tech, Ruihua Electronic Tech, XingRun JiaYuan Science&Tech, and Helian Electronic Tech located in both Beijing and Shanghai. Challenger also sells its product through its online store at www.itserver.com.cn. Enjoying its strong territory coverage and solid partnership with IBM, Challenger is actively taking part in the fast growing IT industry in China. It is very confident about the promising outlook of the company and that of IT industry in China. http://www.changdegroup.com/
2. Personnel additions
a) Ms. Carrie Hartwick (Former Dell Finance Director) - President and CFO
b) Billy Wang (Manager NCH China) - Board of Directors
c) XiaoYang Li (Managing Partner King and Wood law firm) - Board of Directors
d) Geoffrey Wei (CFO GreenWare Tech...Also previously, interim CFO, Vice President and Chief accountant for Ntes) - Board of Directors
e) Julia Zhang (Former Albright firm Lawyer) - Legal Counsel
f) Richard Yan ( Former KPMG) - Finance Director
3. Increases in quarterly Revenue and Profits
a)Rev. 1st Quarter $ 5,722,349 Net loss ($186,916) b)Rev. 2nd Quarter $ 28,112,109 Net Profit $463,387 c)Rev. 3rd Quarter $ 33,665,719 Net Profit $514,204
4. Share Price Increases
a) January 2, 2003 S/P .065 Close b) December 2, 2003 S/P .64 Close
5. Reorganization of other Hrct companies
a) First 2 issues of China Report - Future plans to sell or merge with interested party. b) Sinobull - Merge with GTI, Large Financial Data firm..Listing awaiting favorable market conditions. c) FTL - Soon to be announced OTC listing and spin off to shareholders
6. Company goals for the next 12 months starting August 2003
a) 500 million in Revenue b) Relocate to a major US exchange
Shanghai Based Subsidiaries Are Merging Back-Office Operations
The Hartcourt Companies, Inc. (OTC BB: HRCT) (Frankfurt: 900009), www.hartcourt.com , announced today that it has purchased an additional 6 percent of all outstanding shares of Shanghai Guowei Science and Technology Ltd., www.guowei.com.cn , a major PC retailer and distributor based in Shanghai, China. Together with the 45 percent interest purchased on April 30th, 2003, Hartcourt owns 51 percent of Guowei.
The purchase price for the 6 percent interest is 3 Million RMB (US$0.36 Mil) payable in cash. For the first nine months of 2003, Guowei recorded sales revenue of RMB276 Million (US$33 Million). Founded in 1996, Guowei owns and operates a chain of PC stores in Shanghai and surrounding areas, completed with service centers and warehouse distribution. The stores provide customers with latest computer hardware, software, technical services and other digital products. It also offers its products and services to consumers at its online store www.12diy.com.
Mr. Zhou Jian, Chairman and President of Guowei, comments: "Over the past year, we have seen tremendous benefits as a part of the Hartcourt team both operationally and financially. The injection of capital by Hartcourt to Guowei is a vote of confidence in Guowei, and will further enhance our financial position and competitiveness. Under the leadership of Hartcourt, we are using modern management metrics to expand and grow our business, as well as maximize synergies with other Hartcourt subsidiaries."
In addition, as part of our continuous integration effort of our operations, all Shanghai-based subsidiaries have moved into the same building with Hartcourt's China operational headquarters. Hartcourt group of companies occupies a total of three floors at the new building, which accommodates 100 employees. The new address is located at the office building of the Science and Technology Commission of the Jingan District of the Shanghai Government. The same location will enable Hartcourt to combine the back office supporting functions of Guowei, Pengyang and Huaqing, such as accounting, IT, HR and administration departments, under the leadership of Ms Carrie Hartwick, to further achieve operating efficiency and generate cost savings.
Ms. Carrie Hartwick, President and CFO of Hartcourt, comments: "Our further investment into Guowei has demonstrated our commitment to grow our subsidiaries in which we provide expansion capital in addition to strategy, leadership and financial disciplines. We are pleased with the overall performance of Guowei and Huaqing for the past year, and believe we can increase their overall competitiveness in the market by merging many of its back office functions. The same location will enable Hartcourt to monitor its investment more closely and help them to grow healthier and faster. This has always being our execution plan, and we are glad we are another step closer to our goals."
The Hartcourt Companies, Inc. is one of China's fastest growing companies in the IT distribution and retail services sector. Hartcourt's growth strategy is to acquire controlling interests in profitable companies with proven management within this sector in key geographical areas of China. Recent acquisitions of Hartcourt included six key IT distribution and retail services companies covering all major regions of China that have highest GDP-per-capita in China. Detailed information on Hartcourt can be obtained from: www.hartcourt.com.
This news release contains forward-looking statements. Actual results may differ from any forward-looking statements contained in this news release due to a number of factors that could adversely affect Hartcourt's business, financial condition, operating results and stock price. These factors are discussed in more detail in Hartcourt's filings with the SEC at www.sec.gov.
Hartcourt Announces Strategic Acquisition of IT Service Company Monday February 23, 6:00 am ET
LOS ANGELES, CA--(MARKET WIRE)--Feb 23, 2004 -- The Hartcourt Companies, Inc. (OTC BB:HRCT.OB - News) (Frankfurt: 900009), www.hartcourt.com, announced today that it has signed a definitive agreement to purchase a controlling interest of Shanghai Computer ServiceNet Co., Ltd, a leading independent third-party IT service provider based in Shanghai, China.
The total purchase consideration is approximately US$2.5 million payable in cash and restricted shares. The management team of the company will hold the remaining minority interest.
The acquisition is strategically important for Hartcourt`s fast-growing IT distribution network. Using ServiceNet capabilities would bring major competitive edge to all Hartcourt subsidiaries. They will be able to enhance customer service, develop brand equities and expand into new market segments. The high profit margin of IT service business is another attractive and lucrative sector that Hartcourt plans to increase its investment.
Established in 2000, ServiceNet provides a wide range of IT services to several multinationals in China, such as HP, Dell, Philips, Toshiba, Sony, Samsung, Seagate, etc. The types of services include Authorized Service Center, On-site Services, Hardware Support, System Maintenance, RMA management, and FA Testing. It also provides IT outsourcing services to other multinationals like BAT and Ericsson. Its service network covers 15 major cities in China, including Shanghai, Guangzhou, Xiamen, Hangzhou, Xi`an, Shenzhen, and Kunming, etc. It has over 200 engineers and recorded 4.6mil USD in net revenue in 2003 with about 20% net margin. ServiceNet expects to increase significantly its service offering and coverage, and to expand into the Northern China market in 2004. More details on ServiceNet can be obtained from its web sites, www.servicenet.com.cn.
Mr. Caoyang, President of ServiceNet comments, " We look forward to working with Hartcourt on our expansion initiatives. We are very excited about management, marketing and technology synergies that a relationship with Hartcourt can bring. With China being one of the largest and fastest growing IT market in Asia Pacific, we believe our strong expertise in IT services business will contribute positively to Hartcourt`s bottom line."
The Hartcourt Companies, Inc. is one of China`s fastest growing companies in the IT distribution, retail and services sector. Hartcourt`s growth strategy is to acquire controlling interests in profitable companies with proven management within this sector in key geographical areas of China. Recent acquisitions of Hartcourt included seven key IT distribution, retail and services companies covering all major regions of China that have highest GDP-per-capita. Detailed information on Hartcourt can be obtained from: www.hartcourt.com.