With Haier Group Thursday August 14, 8:33 am ET Company Answers Inquiries On Q2 Financial Results
LOS ANGELES, Aug. 14 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009), www.hartcourt.com , today announced that ZhongNan Computer Group, its subsidiary, has signed a contract to be an exclusive sales agent of Haier IT products in Zhejiang province. The one-year contract is estimated to add 30 to 50 Million RMB of revenue to ZhongNan. ADVERTISEMENT
Choose one Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Click for more! With 30,000 employees and $72 Billion RMB in sales, Haier Group is one of the largest electronics and IT manufacturers in China. Its Chairman, Zhang Ruimin, was voted by "Fortune" magazine as one of the 25 most powerful executives in the world (see www.fortune.com). Details of Haier Group are available on www.haier.com .
On August 6th, 2003, Hartcourt reported a profitable second quarter with $US 28 Million in revenue and $463,378 in net profit. Since then, the company has received some inquiries on the actual meaning of these financial results. Mr. Richard Yan, Acting CFO, explains, "Despite the SARS epidemic, the sales revenue and the gross profit margin of Hartcourt subsidiaries remained unchanged in Q2. Actually, the net profit of these companies increased to 1.86 percent compared to 1.69 percent last year. However, when consolidating with Hartcourt expenses, the net profit was reduced, especially due to the legal and accounting fees associated with the recent acquisitions. On Hartcourt's overhead cost, the amount was reduced to $313,177 in Q2, compared to $807,778 of last year. Taking into account the acquisition cost and the management expense of a much bigger entity, the savings were remarkable. On the sale of StreamingAsia, LogicSpace and SyndicateAsia, the purchase price was nominal; but Hartcourt could buy back these entities within 36 months at no cost. In effect, the deal was structured to allow the buyer to inject sufficient capital to revive these dormant entities. If they are successful, Hartcourt would benefit handsomely from the effort. Overall, we are very satisfied with the substantial progress made in our business plan. During last year's shareholders meeting, we set our goal to be profitable in 2003 and to get ready for major expansion in 2004. We think we would meet the target."
About Hartcourt
The Hartcourt Companies, Inc. is an investment and development company focusing on the acquisition and consolidation of fast-growing IT companies in China. Detailed information on Hartcourt can be obtained via its 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.
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