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**September Q&A**
1. The Olympic committee are now taking bids for the 2008 Olympic sponsorships. Are you planning on participating?
2. One of your answers to a question in the last Q&A stated that Hartcourt prefers to keep a low profile. How will you manage that while becoming the 3rd largest PC retailer in China?
3. How did the number of shareholders jump from 700 in the April 10K to 11,000 by Aug. 22nd?
4. Will this years law changes in December allow you to simplify the way these foreign majority owned subs are structured?
5. Are there any plans to detail the financials for the specific subs and their stores so that we can have more than a broad understanding of how well they are functioning and how much progress they are making quarter to quarter?
6. There has always been talk ( the promise ) of getting HRCT off the OTCBB and listed on another exchange. With this being a stated goal for 2004, how does management plan on accomplishing this if the current pps does not significantly increase?
7. How do Chinese laws affecting share ownership of foreign companies come into play with Chinese nationals who hold Hartcourt stock?
8. David said at the meeting that there would be no competitors for 6 - 12 months. No competitors to what?
9. What are the major differences with business in China and the normal business in the US? How does this affect HRCT?
10. Are margins lower in China because of the lower cost of living? Gross and net?
11. Is there a " sales tax" in China? If so how exactly does it work?
12. Now that HRCT has cash on hand......Is it not more prudent to purchase any additional companies in cash (wholly or partially) as opposed to adding millions of additional shares into the float?
Investorman.....I got your back.....LOL
LOL....BoatRgirl
BoatRgirl.....I think Investorman's problem is that the company changes focus more times than most of us change our shorts......LOL
I agree fully.....You could put another zero on the end of that......and it would still be worth it.....IMHO
China Announces Growth Stats for the Year's First Six Months
By Paul Denlinger
China's Statistics Bureau announced growth statistics for the first six months of 2003. These are the first figures announced following the SARS crisis in China.
Inner Mongolia led the country with 15.7 percent growth, followed by Tianjin (13.7 percent) and Jiangsu province (13 percent). Beijing came in last, in 23rd place, with 9.6 percent growth. Beijing was deeply affected by the SARS crisis in March and April, with several hundred deaths, and most retail outlets closed for several weeks. Beijing scored poorly in other categories as well; Beijing's industrial growth came in at 26th place.
Of China's other municipalities (major cities which report directly to the central government in Beijing instead of to provincial governments), Shanghai had 11.4 percent growth and Chongqing had 11.1 percent growth.
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What China-related topics would you like to read about? Contact us!
TEMP....REVERSE MERGER IS A POSSIBILITY....I GUESS.
JFloyd....Thanks Bro.
Jfloyd....What are we supposed to do......Are we supposed to keep hitting the refresh button?????....LOL
LOL...Temp
Temp.....I don't mind watching the cement dry as long as I am not in it.........LOL
MBR.....Is that what that message said?!.....LOL.....Thanks for the clarification.
LOL....fantastic
Tennis.......were you drunk when you wrote that message?????........Please tell me you were!
Up here in the Northeast I understand that the going rate is anywhere from $75-$85 a yard.........They are just like MM's......Your at their mercy....LOL
MBR....just had 35x25 slab poured for stamped concrete patio.........concrete cost was $800 alone @ $75 per yard.
MM.....I believe that HRCT can buy back those entities for the same price within 36 months.
ROFLMAO.....Shovel
HARTCOURT COS INC COM NEW (HRCT) Trade Set Alerts!
Quote 08/14/2003 10:38 ET
Chart
Delayed / Real-Time
Last: 0.7100
Change: +0.0100 1.43%
Bid: 0.7100
Ask: 0.7400
Tick: Down
Vol.: 75,200
Mkt Cap: N/A
Market: OTCBB
Doc, I agree fully with you....it was a bench mark quarter, to say the least......again I just want to keep the expectations of those who don't take the time to read these filings in check.
By the way.....I think that today's PR is larger than most people will give it credit for.......Can you say credibility??....LOL
And I was trying to do the same.
Drlvanb, You have a response. #34111
shovel, Your not the only one.....I can assure you.
Doc, What I was trying to pointing out was that without the $450k posted for discontinued divisions.....it was a break even quarter at best. HRCT has come a long way in a short amount of time......I was just trying to keep people's expectations in check.......this way if we show a break even quarter for the next filing people understand that the quarter did not get worse, that if not for the $450k they would be even.
Good viewpoint Doc.
I guess it is......LOL
MBR....Not my place to educate people.....LOL......Just thought I would pass along the reasoning......LOL
Liquidity and Capital Resources:
Hartcourt's principal capital requirements during the year 2003 are to fund (by issuing additional stock) the acquisitions of growth and profitable, IT related operating companies in China (See Note # 1, Organization and Nature of Operations, Note # 3, Key Factors on the Company). During the six months ended June 30, 2003, Hartcourt raised necessary funds 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.
F-31
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THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2003 (UNAUDITED)
As shown in the accompanying financial statements, Hartcourt incurred a net gain of $463,387 and $276,471 for the three months and six months ended June 30, 2003 as compared to a net loss of $1,038,474 and 1,820,303 for the same period in 2002, in addition, Hartcourt's current assets exceeded its current liabilities by $3,032,598 at June 30, 2003. All above factors show that Hartcourt has improved substantially on its cash flow position.
Note 9. Loss per Share
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
------------------ ------------------ ----------------- ---------------
Net gain/(loss) $ 463,387 $ (1,038,474) $ 276,471 $ (1,820,303)
Effects of dilutive securities - -
------------------ ------------------ ----------------- ---------------
Weighted average shares outstanding 124,149,929 80,033,267 112,891,929 77,108,098
================== ================== ================= ===============
Basic and dilutive earnings per share $ 0.004 $ (0.013) $ 0.003 $ (0.024)
================== ================== ================= ===============
MBR....Here id why they BELIEVE......
Management believes that Hartcourt's current ownership structure of these Chinese incorporated entities complies with all existing PRC laws, rules and regulations, according to the legal opinion of our Chinese attorney. As the Chinese legal system and rules are just start to formulate and continuing upgrading, there are uncertainties regarding the interpretation of current PRC laws and regulations that it is possible that the PRC government will ultimately take a view contrary to ours.
Hartcourt, through a combination of synergistic internal expansion and accretive strategic acquisitions focused on the IT Product Marketing business in China, is executing plans to provide a sustainable, fast growing, and profitable revenue base. The company is aggressively identifying and pursuing acquisition targets within the industry as well as helping its subsidiaries to explore and share the best business opportunities available. Through a continued refinement of its acquisition programs, operational efficiencies, and setting higher standard of corporate governance, the Company is demonstrating to the market a unique growth strategy, consistent execution of its business plan, and growth of its businesses mirroring the tremendous growth presented by the emergence of the world's largest consumer and business markets.
1) IT Products Marketing Group: This group provides distribution and marketing services for IT products ranging from PC systems and components to all other digital products, serving individual, business and government customers. As of 30 July 2003, the group is comprised of 4 main operations, which are all located in China: HuaQing, located in Shanghai, China, the first member of this Group, a key distributor for Samsung Electronics, helps customers build their own PC systems with components, technology and after sales support. HuaQing is recently voted by International Data Group (IDG) Computer World (China) as one of the Top 100 (by sales) Computer Marketing Companies in China, and the result was posted in the related newspaper.. Followed by NewHuaSun, a similar business to HuaQing, located in the Guangdong province covering the Southern China market. GuoWei, the largest PC retailer (by sales) in Shanghai area with 13 retail outlets, and ZhongNan, the largest PC retailer (by sales) covering the Zhejiang province. This group is currently the core business of the Company (See Note # 4, Key Factors on the Company)
2) Financial Information Group: This group consists of three (3) entities. They are Financial Telecom Limited, a Hong Kong incorporated company, Genius Technology International Ltd., a China incorporated company (acquired 100% of Sinobull Information Co. Ltd which is formerly Shanghai GuoMao Science & Technology Co. Ltd.), and Sinobull Network Technology Company Limited, a China incorporated company (formerly Beijing Net Technologies Center Company Ltd.). The group is engaged in the construction of financial information database and provision of securities and commodities information to brokerages and financial institutions to enable their customers' access to a comprehensive suite of quality financial news, real-time market data, financial analysis and professional market commentary. The group's main scope of business includes
F-9
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THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2003 (UNAUDITED)
financial information service terminal, financial publications indexing and search, internet-based information services. The group is at the forefront of the financial information industry in China, please refer to website:
www.genius.com.cn, its financial services and information portal, is one of the China's financial portals. The group's e-Finance platform is an integration of the advanced Internet, telecommunication and wireless access systems available on the market today. The service platform and collateral content is offered via subscription to leading securities brokerages, investment firms, banks, and media companies throughout Greater China.
3) Media Technology Services Group: This group consists of six (6) entities. They are AI-Asia Inc; StreamingAsia Holdings Ltd; LogicSpace Ltd; SyndicateAsia Ltd; Empact Solutions Inc; and Beijing Total Solution System Ltd. As of June 30, 2003, Hartcourt has exited this business sector by disposing of StreamingAsia Holdings Ltd, LogicSpace Ltd and SyndicatAsia Ltd. to non-related companies. For the disposed of companies, Hartcourt may still have some potential liabilities regarding their past businesses. Management believes that the potential liabilities are being monitored at its minimum.
4) Online Education Group: This business was formed in 2001, after entering a partnership agreement in cooperation with Northern Jiaotong University and California State University Fullerton to jointly develop education projects and introduce American career training courses and post-graduate business programs in China. The project planned to offer both certificate and degree programs. As of June 30, 2003, Hartcourt has not made any new investment after the initial investment and plans to exit this business at the appropriate time in the future.
5) Hartcourt Capital Inc: This division was originally formed to be an investment-banking arm to act as a bridge between high-growth Chinese companies and the U.S. capital markets. Given the refocusing of the Company in expanding the IT Product Marketing Group. To supplement its objective, the division begins publishing a magazine called "China Report". The objective of the magazine is to provide international institutional investors with updates and analysis on the fast-changing investment environment and opportunities in China.
Well one question has been answered....How did we go from 3 to roughly 6 million in cash in one quarter??
Answer:
Cash acquired in acquisitions 2,940,509
Gain/(loss) before discontinued operations 55,002 (1,038,474) (131,914) (1,820,303)
Discontinued operations:
Loss from discontinued operations - - - -
Gain on disposal of discontinued operations 466,655 - 466,655 (1,820,303)
------------ ------------ ------------ ------------
Gain/(loss) before income tax 521,657 (1,038,474) 334,741
Income tax (58,270) - (58,270) -
------------ ------------ ------------ ------------
Net Gain/(loss) $ 463,387 (1,038,474) $ 276,471 $ (1,820,303)
------------ ------------
Does Everyone here realize that the Profit that was realized this quarter was due to the fact that they wrote off a loss for a discontinued operation??????
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ended June 30 For the Six Months Ended June 30
---------------------------------- --------------------------------
2003 2002 2003 2002
------------- ------------- ------------- -------------
Net sales $ 28,112,109 $ 1,795,965 $ 33,834,458 $ 5,343,564
Cost of sales 27,012,645 1,433,692 32,343,510 4,456,656
------------ ------------ ------------ ------------
Gross profit 1,099,464 362,273 1,490,948 886,908
------------ ------------ ------------ ------------
Operating expenses:
Selling, general and administrative 760,206 807,772 1,191,001 1,886,928
Depreciation and amortization 18,550 1,167,619 47,250 1,530,363
Impairments - - 14,816 -
------------ ------------ ------------ ------------
Total operating expenses 778,756 1,975,391 1,253,067 3,417,291
------------ ------------ ------------ ------------
Gain/(loss) from continuing operations
before other income 320,708 (1,613,118) 237,881 (2,530,383)
Other income (expense):
Equity in earnings (loss) of affiliate - 514 - 7,554
Loss on abandonment of property and equipment - (50,082) (72,371) (164,973)
Interest expense (79,742) (14,487) (92,891) (47,413)
Interest income - 65,681 508 119,299
Other 42,433 58,887 42,463 58,887
------------ ------------ ------------ ------------
Total other income (expense) (37,309) 60,513 (122,291) (26,646)
------------ ------------ ------------ ------------
Gain/(loss) from continuing operations 283,399 (1,552,605) 115,590 (2,557,029)
Less: gain/(loss) in subsidiary
attributed to minority interest (228,397) 514,131 (247,504) 736,726
------------ ------------ ------------ ------------
Gain/(loss) before discontinued operations 55,002 (1,038,474) (131,914) (1,820,303)
Discontinued operations:
Loss from discontinued operations - - - -
Gain on disposal of discontinued operations 466,655 - 466,655 (1,820,303)
------------ ------------ ------------ ------------
Gain/(loss) before income tax 521,657 (1,038,474) 334,741
Income tax (58,270) - (58,270) -
------------ ------------ ------------ ------------
Net Gain/(loss) $ 463,387 (1,038,474) $ 276,471 $ (1,820,303)
------------ ------------ ------------ ------------
Other comprehensive gain (loss):
Foreign currency translation gain (loss) - (22,711) - (9,405)
------------ ------------ ------------ ------------
Comprehensive gain/(loss) $ 463,387 (1,061,185) $ 276,471 $ (1,829,708)
============ ============ ============ ============
Basic and fully diluted gain/(loss) per common share:
Gain/(loss) from continuing operations $ 0.000 (0.013) $ (0.001) $ (0.024)
Gain/(loss) from discontinued operations 0.004 - 0.004 -
------------ ------------ ------------ ------------
Gain/(loss) per share $ 0.004 (0.013) $ 0.003 $ (0.024)
------------ ------------ ------------ ------------
Weighted average number of shares outstanding
- Basic and fully diluted 124,149,929 80,033,267 112,891,929 77,108,098
============ ============ ============ ============
MBR......There are many reasons that publicly traded companies are incorporated in other countries or even states because of tax sheltering, laws, ETC.
China Beats U.S. As Leading Importer To Japan
By Agence France-Presse
China overtook the United States as the leading source of imports to Japan for the first time since the end of World War II, the Japan External Trade Organization (JETRO) said in an annual report released Aug. 11.
In 2002 Japan imported US$61.7 billion worth of products from China, compared with U.S. imports to Japan worth $57.6 billion, according to the report.
"For Japan, China has become the top manufacturer of IT products, surpassing the United States," JETRO said.
Additionally, China was also Japan's second biggest export market after the United States.
U.S.-bound exports from Japan were worth $118.5 billion dollars in 2002, while Japan exported $39.9 billion worth of goods to China. The booming trade with China played a significant role in the rebound in Japanese exports, which rose 2.6% to $415.9 billion on a customs-cleared basis in 2002, the report said.
"In terms of volume, both exports and imports saw positive growth from the previous year for the first time in two years. Trade with Asia, China in particular, contributed greatly to this growth," JETRO said.
Global economic and trading activity gradually recovered in 2002, supported by the recovery of the East Asian economy in particular. Total global trading activity in 2002 grew 4.1% to $6.36 trillion, according to JETRO.
"The East Asian economy recovered, after slumping due to the IT recession, and helped expand global trading activity in 2002," JETRO said. "Old" economy sectors, such as automotive, steel, and chemical products, one again became the engine of global trade.
Copyright Agence France-Presse, 2003
HotStockChat.com Daily August 12, 2003
12:35PM EDT
"Tune into Traders Nation 'LIVE' - The Largest Syndicated Radio Talk Show For Smallcap Stocks every
weekday morning at 11AM EDT for the latest in OTCBB news, stats, moving stocks and world news"
Stocks of Interest and Stocks on the Move for 12 August 2003 at 11:45AM EDT:
CSCA.OB - Stock continues higher now for the second consecutive day.
HRCT.OB - Up a few pennies today... we watch this stock every day.
BTLY.OB - Up four days in a row... over .03 now.
PALR.OB - Was on the watch list yesterday... has a lot of interest.
NRXI.OB - Up four straight days with a big move today.
UTYW.OB - Uptrending since early June, big move last two days.
WTNT.OB - Big gap this morning and nice follow through from yesterday.
DLGI.OB - Has made a nice base and is trying to break out of a trading range.
We are watching APPI.OB closely today too...
In the "Stocks of Interest and Stocks on the Move" section above, With the exception of CSCA.OB, which we were compensated 190,000 free-trading shares for a profile of the Company, HOTSTOCKCHAT.COM does not own any of the stocks mentioned. Nor were we compensated by any third party on behalf of any company mentioned above. The fact that we mentioned the stocks is for informational purposes only and not a solicitation to buy any stocks mentioned in that section, in this emailing or on our web page. More information on our disclaimer page.
Only 5 MM's left with an Ask in the 70's, as opposed to 11 yesterday......could be a good day if we were to get some buy side volume. IMHO
Market News
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A AGILENT TECHNOLOGIES INCORPORATED
ADLTQ ADVANCED LIGHTING TECHNOLOGIES, INC.
CAE CASCADE CORPORATION
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TABLE: Unconfirmed Earnings Expected Monday, Aug 18
TUESDAY , AUGUST 12, 2003 07:20 AM
Based on historical evidence the following companies are expected to report their quarterly earnings on Monday, August 18, 2003. These companies have NOT confirmed these dates.
SYMBOL COMPANY PERIOD WHEN EST/REVENUE EST/EPS
------ ------- ------ ---- ----------- -------
A Agilent Technologies Incorporated Q3 AMC $1,499.43M -0.07
ADLTQ Advanced Lighting Technologies, Inc. Q4 AMC n/a n/a
CAE Cascade Corporation Q2 AMC $70.00M 0.40
CAU Canyon Resources Corporation Q2 DMH n/a n/a
CRB Carbon Energy Corporation Q2 AMC n/a n/a
CTIB CTI Industries Corporation Q2 AMC $11.10M -0.03
DLW Delta Woodside Industries, Inc. Q4 AMC n/a n/a
DMN Dimon Incorporated Q4 DMH n/a n/a
EXDTQ Exide Technologies Q1 DMH n/a n/a
FNCN Frank's Nursery & Crafts Inc Q2 AMC n/a n/a
HAR Harman International Industries, Incorpo Q4 DMH $578.03M 1.05
HCTL Healthcare Technologies Ltd Q2 DMH n/a n/a
HRCT The Hartcourt Companies, Inc. Q2 BMO n/a n/a
KOR Koor Industries Limited Q2 AMC n/a n/a
LOW Lowe's Companies Inc Q2 BMO $8,503.43M 0.69
LRLSQ Loral Space & Communications LTD. Q2 BMO n/a n/a
MAJR Major Automotive Companies, Incorporated Q2 AMC n/a n/a
MASG Mooney Aerospace Group Ltd Q2 DMH n/a n/a
MPVI Mountain Province Diamonds Inc Q4 UNK n/a n/a
MS Milestone Scientific Inc Q2 BMO n/a n/a
NXIA Nexia Holdings Inc Q2 BMO n/a n/a
PFP Premier Farnell plc Q2 BMO n/a n/a
ROP Roper Industries, Inc. Q3 AMC $168.94M 0.53
SCBI SCB Computer Technology Inc Q1 AMC n/a n/a
SEIEQ Seitel, Inc. Q2 AMC n/a n/a
SEVU SeaView Video Technology Inc Q2 UNK n/a n/a
SLI SL Industries, Inc. Q2 AMC n/a n/a
SNGR Singer N.V. Q2 BMO n/a n/a
SONT Sontra Medical Corporation Q2 DMH n/a n/a
STND Spectre Industries Inc Q2 DMH n/a n/a
TTPA Trintech Group PLC Q2 BMO n/a n/a
USGA US Global Nanospace, Inc Q1 AMC n/a n/a
VTOR Vectoria Inc Q2 DMH n/a n/a
VTS Veritas DGC Inc. Q4 AMC $119.95M -0.07
BMO = Before Market Open
DMH = During Market Hours
AMC = After Market Close
UNK = Release Time Unknown
Consensus estimate data provided by Multex.com, Inc.
Visit Knobias.com for more indepth earnings information.
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Copyright © 2002. The Nasdaq Stock Market, Inc
Copyright ©2002 Knobias.com, LLC
Anyone know what this is about?.......http://www.aciba.org/training/us.htm