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@IQIQ
ich habe deine konversation auf dem US-board verfolgt. Tin hat, wie ich finde völlig zurecht, darauf hin gewiesen, dass es sinn macht, erstmal den nächsten quartalsbericht im oktober abzuwarten, um dann zu entscheiden, ob man dabei bleibt, oder hin schmeißt.
ich möchte mal kurz darauf eingehen, was man von diesem ersten quartal erwarten kann und was nicht.
hartcourt hat bisher eine neue beteiligung, nämlich Beijing Yanyuan. diese hat zugesagt, in 2008 einen gewinn von 500k zu erreichen.
aus dem 10K von hartcourt erfährt man, dass die semestergebühren die haupteinnahmequelle sind und dass der hauptumsatz demnach im ersten und dritten geschäftsquartal erzielt wird.
nehmen wir mal an, dass sich umsatz und gewinn von Beijing Yanyuan über die vier geschäftsquartale von hartcourt wie folgt verteilen: 40%, 10%, 40%, 10%.
dann würde hartcourt im kommenden quartalsbericht einen beteiligungsgewinn von ca. 200k haben.
dem gegenüber stehen die administrativen kosten der holding. im letzten jahr lagen diese im ersten geschäftsquartal bei 306k.
daher würde ich von dem nächsten quartalsbericht maximal eine reduzierung des verlustes erwarten. einen gewinn, selbst eine schwarze null, sehe ich noch nicht...
grüße
Rattle
@CE
habe dir gerade eine mail geschrieben.
grüße
Rattle
ich glaube, du bist ein alter bekannter hier, nicht wahr... aber egal.
die meisten haben den wunsch, dass sich einmal an eine ankündigung gehalten wird und nicht alles immer nur wunschdenken und visionen des managements ist!
und meinst du nicht, wenn man diesen wunsch hat, dann muss man dem jetzigen management auch die chance geben, diesen wunsch zu erfüllen.
das jetzige management hat angekündigt:
1. in das education business einzusteigen -> ankündigung gehalten!
2. schulen zu übernehmen -> die erste ist übernommen, ankündigung gehalten!
3. einen businessplan zu veröffentlichen -> ist geschehen, ankündigung gehalten!
aber du siehst leider nur die negative seite der geplatzten MOUs und DAs, alles andere blendest du aus.
grüße
Rattle
das können wir uns ja dann für den zwölften versuch aufheben...
das große problem der meisten aktionäre ist, dass sie einfach keine lust haben, noch länger zu warten, um mal was von diesem investment wieder zu bekommen. das halte ich auch für vollkommen nachvollziehbar.
mit solchem frust im nacken ist es manchmal auch nicht einfach, eine situation sinnvoll zu interpretieren.
grüße
Rattle
hey, posting nr. 22222, coole zahl...
grüße
Rattle
aussage 1:
der elfte versuch hat geringere chancen als der zehnte.
aussage 2:
der elfte versuch wird nichts, weil die anderen zehn auch nichts geworden sind.
erkennst du den unterschied? bei aussage 1 gehe ich mit, aussage 2 halte ich für kompletten unsinn.
grüße
Rattle
an nokia muss ich bei diesen vergleichen auch immer denken...
grüße
Rattle
du meinst, hartcourt entwickelt ein system, nacheinander ein business nach dem anderen in den sand zu setzen? wem sollte das nützen?
grüße
Rattle
ich habe genau deshalb auch nicht gesagt, dass die chance jedesmal gleich gut ist; aber sie ist da. und sie verdient eine chance.
grüße
Rattle
seit 1998 ist das jetzt das 4. oder 5. geschäftsmodell. vlt. auch das 6. oder 7., wer weiss das schon genau?
...und nun soll es wieder der grosse brüller werden, wie schon x-mal vorher.
aber genau darin liegt doch dein irrtum. nehmen wir mal folgendes beispiel. in einem haus am markt residiert die "meier GmbH" und die verkaufen erfolglos ein minderwertiges produkt, was früher oder später dazu führt, dass sie zumachen müssen. ein völlig anderer herr meier zieht nach ein paar monaten in das gebäude ein und vermarktet mit seiner "meier GmbH" ein vollkommen anderes produkt.
nach deiner logik kann man die erfolgschancen von meier 2 und seiner produkte danach beurteilen, wie erfolgreich meier 1 gewesen ist.
ich hoffe, dass das nicht nur in meinen ohren nach komplettem blödsinn klingt.
hartcourt von heute ist eben nicht hartcourt von z.b. 2004, andere leute, anderes business, andere erfolsaussichten. damit sage ich nicht, dass das jetzt ganz sicher der ganz große brüller wird. aber die chance, dass dieser versuch erfolgreicher verläuft als der letzte, die ist da; und die sollte man nicht einfach unter "alles verarsche" abhaken.
grüße
Rattle
der kurs wird wohl mindestens bis zu den Q1-zahlen stagnieren. sollten diese im erwarteten rahmen liegen, also irgendwo zwischen geringem verlust und 0, gehts dann bestimmt auch weiter seitwärts. so gesehen gibt es in dennächsten wochen sicher viele andere möglichkeiten, am aktienmarkt geld zu verdienen. aber die gibt es immer, nicht wahr...
grüße
Rattle
trümmerhaufen? pleitebude?
für mich ist hartcourt weder das eine noch das andere. zumindest nicht hier und heute.
in den letzten monaten hat hartcourt viele (selbst verschuldete) probleme beseitigt. das IT-business, dass wie ein klotz am bein hing, wurde nun entgültig abgeschlossen.
auch wenn mancher hier genau wie ich selbst schon seit jahren dabei ist, so besteht das unternehmen mit diesem geschäftszweck und diesem management erst seit juni dieses jahres. und dabei ist es im grunde egal, ob frühere versuche in china fuß zu fassen gescheitert sind. das hat doch auf die aktuellen chancen im education business keinen einfluss.
muellermaennchen meint, wenn eine firma 10 mal ihr ziel nicht erreicht, dann wird das auch beim 11. mal nichts. das halte ich für kompletten unsinn. die chance, dass es was wird, ist zum startzeitpunkt jedes mal existent und der erfolg niemals von vornherein ausgeschlossen.
egal wie man die chancen dieses businesses zu beginn bewertet hat, mit der ersten geglückten übernahme sind die erfolgsaussichten bereits ein wenig weiter gestiegen.
grüße
Rattle
mal abgesehen davon, dass hartcourt keine pleitebude ist, wäre das ja wohl kaum gleichbedeutend mit: "jemand ..., der eine Top Idee für ein Business hat"
@CE
denkst du wirklich immer noch, dass hartcourt pleite gehen wird?
grüße
Rattle
Nun zu meiner Frage:
Wenn es wirklich jemand geben sollte, der eine Top Idee für ein Business hat, meinetwegen auch in China, warum sucht der sich ausgerechnet so einen Trümmerhaufen wie HRCT?
die frage verstehe ich nicht. deine frage setzt voraus, dass jemand außerhalb von hartcourt diese idee hatte und dann zuhartcourt gegangenist, um diese umzusetzen. aber wer ist denn mit dieser idee zu hartcourt gegangen?
grüße
Rattle
halte durch. das wird schon noch...
ich freue mich, dass du wieder guter hoffnung bist. deine stets optimistischen postings haben uns gefehlt...
grüße
Rattle
übrigens steht der schlüsselsatz direkt davor:
These pro forma results have been prepared for information purposes only and do not purport to be indicative of what operating results would have been had the acquisitions actually taken place on June 1, 2005 and 2006 respectively, and may not be indicative of future operating results.
mit anderen worten, hätte hartcourt die übernahme wirklich vollständig durchgeführt und das geplante business in hartcourt princely aufgebaut, wären die ergebnisse wohl ganz anders ausgefallen.
Tin hat gestern im US-board die vermutung geäußert, dass hartcourt einfach kein geld hatte, um das geplante geschäft in princely aufzubauen. offenbar plant man ja, diese schule als test- und prüfungsinstitution zu installieren. das war zumindest in 2006 der plan. im aktuellen business plan heißt es: "Vocational education is the most important part of our whole business plan. We will build our own accrediting institution to focus on this growing market."
ich denke, damit ist ebenfalls hartcourt princely gemeint.
der aufbau einer solchen institution kostet erstmal geld, z.b. für das entwickeln von test, das durchführen der prüfungen, die auswertung, etc. dafür benötigt man personal, das bezahlt werden will. es könnte also durchaus sein, dass mit dem cashflow aus den neuen akquisitionen der ball auch bei hartcourt princely ins rollen gebracht werden kann.
grüße
Rattle
also bei hartcourt princely binich völlig ratlos. da würde ich sagen, da gibt es im moment irgendeine art problem, dass sich wohl aus dem wege schafen lässt, aber offenbar nicht so ohne weiteres.
die anderen beiden tauchen seit den jeweiligen MOUs in keinem filing mehr auf. fraglich, ob da noch beiderseitiges interesse besteht. vielleicht sind sie durch den due diligence prozess gefallen.
grüße
Rattle
ich halte die wortwahl für absolut eindeutig. der plan ist, in den nächsten vier jahren 12 schulen zu übernehmen und sechs davon in den ersten beiden jahren. alles andere ist wunschdenken.
klar kann es passieren, dass die rahmenbedingungen sich dramatisch verbessern und dann wäre auch mehr möglich, aber das wäre dann eine abweichung vom plan!
um es gleich vorweg zu nehmen: natürlich können sich die rahmenbedingungen auch dramatisch verschlechtern und dann wäre viel weniger möglich...
grüße
Rattle
hi franz,
stimmt, zhengda war nur ein MOU. das spielt in diesem zusammenhang aber keine rolle. da die vereinbarungen, die in diesem MOU getroffen wurden, die bisherige struktur von hartcourt in bezug auf umsatz/ergebnis, gesellschafterstruktur, ausgegebene aktien, etc. völlig verändert hätten, musste das MOU damals bekannt gegeben werden.
gelistete unternehmen sind verpflichtet, ereignisse, die solche tiefgreifenden veränderungen bedeuten, zu veröffentlichen. da ist es völlig egal, ob sie MOU oder DA oder sonst was drauf schreiben. der inhalt überwiegt hier die formale benennung.
wenn sich die aktionäre dann über viele monate hinweg mit der neuen situation vertraut gemacht haben und das MOU dann platzt, ist es natürlich genau so die pflicht des unternehmens, das zu veröffentlichen.
noch ein wort zu der frage des späten zeitpunktes, an dem man uns das mitgeteilt hat:
es liegt in der natur der sache, dass ein unternehmen keine proaktive negativ-PR macht. kein unternehmen der welt stellt sich hin und gibt eine negative pressemitteilung heraus, wenn es nicht durch regeln oder gesetze dazu gezwungen ist.
der zwang, diese veränderung mitzuteilen, entstand aber erst im nächsten filing, dass auf das terminierungsdatum des MOU folgte. und da das gestrige 10K nun mal das erste offizielle 10-X-filing seit dem 31.5.2008 ist, wird auch erst in diesem darüber informiert.
natürlich hat man beim abschluss des MOU damals eine PR herausgegeben, aber da war es eben auch eine positive nachricht.
man kann als hartcourt-aktionär sauer darüber sein, dass man nicht früher vom platzen des MOU erfahren hat, aber das hat absolut nichts mit unseriösem management oder bösartigem verschweigen zu tun. das hätte jedes andere unternehmen genau so gemacht.
man stelle sich mal vor, die hätten am 1.6.2008 eine PR heraus gebracht und groß und breit das platzen des deals proklamiert. das MOU war damals der(!) hoffnungsträger. der kurs wäre sicherlich ins bodenlose gerutscht. da möchte ich mal den aktionär sehen, der darin als allererstes die seriösität des managements erkannt hätte...
grüße
Rattle
ja, das problem ist nur, dass der kurs nicht erst steigt und man danach mit den aktien übernahmen bezahlen kann.
übrigens war heute im filing ein hinweis darauf, dass das business über das gesamtjahr gesehen tatsächlich starken saisonalen schwankungen unterliegen wird. da die semester jeweils im september und im märz beginnen und die gebühren dafür wohl vorher fällig werden, wird der größte teil des umsatzes vor allem im ersten und dritten geschäftsquartal generiert, also eben kurz bevor die semester beginnen.
hier ist der auszug aus dem filing:
Our education business will be highly seasonal. Because most students want their vocational training during already established vacation periods, generally during the first and third fiscal quarters, we expect our education business to be highly seasonal. We may have more students attending courses and as a result earn most of our revenues during that time. To the extent we do not provide training to students during the peak seasons, we will lose opportunities. This seasonality may cause our operating results to vary considerably from quarter to quarter and significantly impact our liquidity position.
ich habe mir mal die "mühe" gemacht, zu errechnen, welchen gewinn hartcourt aus den beteiligungen nach der übernahme von 12 schulen in den nächsten vier jahren erwirtschaften würde.
ist natürlich nur zahlensalat!
folgende annahmen habe ich mal getroffen.
- alle vier monate kommt eine schule dazu.
- alle schulen erwirtschaften einen gewinn wie beijing yanyuan. (wir haben ja bisher nur die eine schule zum benchmarking)
- beijing yanyuan garantiert für das jahr zwei und drei nach der übernahme eine gewinnsteigerung von 60% p.a. (das ist keine annahme sondern fakt). angenommen alle schulen können für die ersten beiden jahre solche steigerungen hinlegen und danach sinkt die rate jedes jahr um 10%.
dann würde man in 2008 eine weitere schule übernehmen, 2009, 2010 und 2011 jeweils noch drei, und 2012 noch eine.
bei den oben getroffenen annahmen läge der gewinn aus den beteiligungen in 2013 bei 22,5 mio $
nicht berücksichtigt sind dabei die kosten der holding, investitionen in die schulen, etc. aber auch keine kostenreduzierung durch konsolidierung, synergieeffekte, usw.
die große frage ist, wie finanziert man das? wenn jede der schulen soviel kostet wie beijing yanyuan sind das in summe immerhin nochmal knapp 30 mio. $
grüße
Rattle
ich stimme da fast bei allem zu.
eine ausnahme würde ich bei zhengda machen. es gab ein MOU zwischen beiden parteien und das heißt im wörtlichen sinne, dass beide parteien einverständnis über den zusammenschluss hatten. nun ist dieses MOU aber terminiert worden. wenn die ursprünglichen rahmenbedingungen einen zusammenschluss unmöglich gemacht haben und es hätte alternative rahmenbedingnungen gegeben, die sich hätten erfüllen lassen, hätte man das MOU sicher nur in den entsprechenden passagen abgeändert.
ich tippe, dass es so lief:
die regierung hätte dem ganzen nur zugestimmt, wenn zhengda nach dem deal keinerlei anteile mehr an seinem education business gehabt hätte. damit fiel eine finanzierung des deals über aktien aus. zhengda hätte eventuell auch den gesamtkaufpreis in cash akzeptiert. dieser hätte aber insgesamt ca. 25 mio. betragen und das konnte hartcourt beim besten willen nicht aufbringen.
aber wer weiß, in ein paar jahren sieht die lage vielleicht anders aus. interessant dürfte sein, was zhengda nun mit seinen IPO-plänen macht und ob sie einen anderen käufer für ihre subs finden.
grüße
Rattle
alles in allem wieder mal hinhalten, abwarten, nix passiert und bla, bla, bla...
verzeiht, aber es hat sich nichts, aber auch gar nichts geändert!
was hätte denn deiner meinung nach im business plann stehen müssen, damit du über die oben zitierten punkte anders denken würdest?
grüße
Rattle
ich halte das für ein sehr sinnvolles vorgehen. es deutet darauf hin, dass man die übernahmekandidaten mit bedacht auswählt und sich selbst zeit geben will, diese in die gruppe zu integrieren.
und immerhin: 12 schulen in den nächsten vier jahren ist im schnitt alle vier monate eine schule. das kling für mich nicht sooooo langsam.
mehr als die anzahl der schulen hätten mich aber die möglichen umsätze und gewinne bei erfolgreicher realisierung der pläne interessiert.
nun müssen sie aber erst mal beweisen, dass diese pläne überhaupt umgesetzt werden können.
grüße
Rattle
wow!
hartcourt auf der webseite gerade seinen business plan veröffentlicht!
quelle: http://www.hartcourt.com/english/ONEWS.asp?id=163
09/02/2008 BUSINESS PLAN
Dear Fellow Shareholders:
Hereby we make a brief description of the business plan to be implemented by the present executives:
Overview
The present management is focused on creating shareholder value by seeking higher margins business, initially in the Chinese educational training marketplace. Our ultimate goal is to generate revenue and profit for shareholders.
We have researched the business plan and conducted a feasibility study targeting the Chinese educational training marketplace. We think that the schools will increase the company’s net free cash flows, which should enhance shareholder value. We believe profit margins will be high. We feel the plan is solid and believe it addresses all the core aspects of the business strategy. We will carry out our school business acquisitions for the time being as Hartcourt’s core business.
Hartcourt will adopt an aggressive strategy to develop its educational operation assets by acquiring existing profitable schools and training institutions which usually generate good profit margins and excellent cash flows.
We believe China's education training market is one of the largest and fastest growing segments of China's economy. The business is attractive thanks to strong enrollment growth, repetitive tuition revenue nature and consolidation trend. Hartcourt is well positioned to take advantage of this opportunity and the strategy will deliver strong return to our shareholders.
On July 23 2008, we successfully completed the acquisition of Beijing Yanyuan which has substantial profit and market prospect. Beijing Yanyuan, as our first subsidiary, build a strong bridge between Peking University and us. With the close tie with Peking University, our further acquisition will be smoother. We believe we finished the first major step in our strategy to become a leader in the emerging for-profit, schools and training institution education sector in China.
We are very pleased that we successfully closed the first acquisition with real revenue which will be consolidated in our first quarter. We look forward to closing additional training institution and school deals in the future.
Through our early efforts of research in the education training market, we have acquired substantial knowledge of the education training market and the needs of its consumers. With the rapid acquisition of schools and training institutions, we can expand the business scale, and take advantage of our education market knowledge to leverage our experience and valuable resources to meet the needs of the education market.
Vision, Mission
Our strategic vision is to be a leading provider of education and training services in The People's Republic of China.
Our mission is to extend our position as the leading provider of education and training services including many profitable schools and training institutions in China, and expand our education businesses in China, by pursuing the following strategies:
Pursue selective strategic acquisitions and alliances, if and when attractive opportunities arise
China’s Education Markets
In 1986, the PRC government implemented a system of compulsory education that requires each child to have at least nine years of formal education. Chinese culture has historically placed a strong emphasis on education. As a result of the “one child” policy of the PRC government, Chinese families are generally willing to invest a substantial amount of their financial resources in their only child’s education. According to the Economist Intelligence Unit, the Chinese disposable income per capita increased at a compound annual growth rate, or CAGR, of 6.7% from 2002 to 2006 and is expected to increase at a CAGR of 8.3% from 2007 to 2011. With greater amounts of disposable income, Chinese families are spending an even higher percentage of their disposable income on their children’s education. Education expenditure as a percentage of GDP is expected to grow from 4.0% in 2005 to 4.5% in 2010, according to the China Education Human Resources Report of 2003.
China’s education market is large and growing rapidly as a result of favorable demographic and consumer spending trends and the increased importance placed on higher and professional education.
According to the Ministry of Education (MOE), 29 million students will reach college age in the next 5 years, a 40% increase and a US$36 billion market. While MOE-controlled universities and colleges still maintain dominant market share, the field is now open for private and foreign investment capital. In addition, MOE has set a timeline to privatize all vocational schools and educational institutions that offer degrees lower than Bachelor by 2010.
According to the China Statistical Yearbook (2007), in 2006, approximately 686 million people in China were between the ages of five and 39. Ongoing urbanization has increased the proportion of China’s population living in urban areas from 36.2% in 2000 to 43.9% in 2006, as stated in the China Statistical Yearbook (2007), and is expected to continue to increase. According to the National Bureau of Statistics of China, average per capita annual consumption expenditures in urban areas in China have increased, from approximately RMB4,998 ($712.8) in 2000 to approximately RMB8,697 ($1,240.3) in 2006. Consumption expenditure on education, cultural and recreational services accounted for 13.8% of total annual consumption expenditures per capita in urban households in 2006, the second largest category after food. We believe these demographic and consumer trends are making people in China increasingly willing to invest in higher and professional education.
China has one of the fastest growing economies in the world. As China’s economy continues to develop, its service industries are playing an increasingly important role. We believe this will increase opportunities in the education markets as people continue to seek advanced skills and professional licenses and certifications.
**Training Industry in China
Training industry is a very attractive industry. Until the end of 2006, the output value of training industry has reached RMB320 billion, and is rapidly increasing at the speed of 15-30% per year, while the profits have even gotten close to RMB160 billion. Compared to those in developed countries, training industry remains a primary industry in China. So the training industry in China has a huge market with big potential and wide prospects.
Meanwhile, training market in the mainland develops rapidly, increasing 10 times each year. In China, if a person of each household takes part in training once every five years, the training market will be as huge as TV market. But in fact, the seniors of foreign invested enterprises generally undergo training 5-7 times each year. Therefore, China's future training market will be much greater than TV market. Since there is such a market demand, there will be large capital involvement in the near future. There are 22322 private training institutions 9 million people take part in the training.
Going forward, the Company plans to focus on education training market in China to take advantage of the on-going demand of education training and growing potential population to be trained.
**Chinese Vocational Education
The vocational education in China has witnessed the best stage of development.
Firstly, the CPC Central Committee and State Department pay unprecedented attention to vocational education, regarding vocational education as an important foundation for national economic and social development, strategically focusing on education work, and come up with funds to fully support the development of vocational education. During the "11th Five-Year Plan" period, the government puts RMB10 billion into fundamental capacity building projects. Meanwhile, 10 billion from central finance, 4 billion from local finance are allocated each year, to establish and improve the financial assistance system for vocational school students. All is reflected that the government has paid an unprecedented national attention to vocational education.
Secondly, the scale of the vocational education is the biggest in history. In 2007, the enrollment of middle vocational schools is 8.1 million people, accounting for 49% of total enrollment of high schools enrollment of high vocational schools is 2.83 million people, accounting for about 50% of the enrollment and students on campus of the normal high education institutes.
Vocational education is the most important part of our whole business plan. We will build our own accrediting institution to focus on this growing market.
**Private Primary and Secondary Schools
The market for private primary and secondary schools in China is growing rapidly. We believe that private primary and secondary schools will play an increasingly important role in providing quality education in China, particularly to the children of the emerging middle class. Parents in China, as in the rest of the world, are continuously searching for the best educational solutions for their children. By acquiring or partnering with leading established institutions, we believe the private primary and secondary school business represents a compelling business opportunity for us. According to the World Bank Study, between 2002 and 2005, China accounted for approximately 70% of global primary and secondary enrollment growth.
As a result of this market opportunity, we acquired Beijing Yanyuan(60% equity interests) which mainly cooperates with primary and secondary schools through its unique program and famous brand. We believe this market opportunity is attractive, complements our existing sources of revenue and also provides us with opportunities to realize the whole sound business plan.
The Management Team
Victor Zhou, CEO
Mr. Zhou has extensive experience in IPO, asset management, private equity investment, security trading and investment, operation & management in China. Mr. Zhou has rich social resources in education business and MOE, which can smooth the acquisition of schools.
Rachel Zhang, CFO
Ms Zhang has extensive experience in financial analysis, operation and office administration. She received her Masters Degree in Accountancy from Baruch College.
Board of Directors
Dr. Wilson Li, President of Shenzhen Capital Group
Chairman of the Board of Directors
Dr. Li has extensive experience in fund management, risk control, investment & international business.
Victor Zhou, CEO
Mr. Zhou has extensive experience in IPO, asset management, private equity investment, security trading and investment, operation & management in China. Mr. Zhou has rich social resources in education business and MOE.
STEPHEN TANG, Chairman of Mega Pacific Capital Inc
Mr. Tang has over 30 years of experience in senior management of financial services companies.
Zhenyu Hu, President of Beijing Yanyuan Rapido Education Company (subsidiary of Hartcourt)
Mr. Hu has considerable background and knowledge in education and training area. He is the editor of the magazine "Successful Way," and the director of the Science Park of Peking University. Mr. Hu is also a well-known speaker in the education and training areas.
George Xu, partner of G&D Law Firm
Mr. Xu has been engaged in the practice of law for 17 years. He is a registered lawyer in China, and is a qualified securities legal adviser under Chinese law. He has considerable experience in establishing joint ventures and advising companies on acquisitions in China.
Our Board consisted of 5 professional members with rich work experiences, will lead Hartcourt to grow a leading education group.
Business Strategy
We intend to leverage our competitive advantages to achieve our goal of becoming China’s leading brand in education training by pursuing the following strategies:
Our strategy consists of the following key elements:
Expand the penetration of existing program services. We plan to take advantage of our rich experience and social resources to expand the penetration of the services of our acquired subsidiary by helping them to increase enrollment in their programs. We are actively targeting new schools and training institutions with substantial profit.
Hartcourt successfully completed the acquisition of Beijing Yanyuan Rapido on July 23 2008. Founded by the Science Park of Peking University, Beijing Yanyuan is a well-known training institution. Beijing Yanyuan offers a program to help students rapidly improve their school grades. The program has proved to be effective.
Given its mature strong brand and wide education market, Beijing Yanyuan started a new business strategy to expand the market share through cooperation with more schools from this year. This business strategy can establish a highly scalable and adaptable business model using its program and experienced management team.
As a first trial, Beijing Yanyuan signed a cooperation agreement with 2 partner schools, one located in Henan province, and the other in Shandong province.
Beijing Yanyuan will receive 40% - 60% tuition fees charged by school partners from enrolled students as the service and brand income, the ratio will be different based on the region and style of school partners.
For the academic year starting September 2008, about 1,000 students have been enrolled with the two school partners under Beijing yanyuan’ cooperation. The tuition charged will be showed from the financial report of our second quarter.
Using our substantial social resources, we will help Beijing yanyuan to cooperate with more school partners in the coastal and relatively more affluent regions of China, which include approximately 150 cities that exhibit strong enrollment potential.
We will also inject the unique program into our target schools which will be acquired by us in the future so that the profit can be increased due to higher tuition fees from the students enrolled.
We will make strategic acquisitions and establish a network of education training institution initially in key cities, and across China to leverage our education resources and increase income scale. We plan to seek acquisition opportunities that are complementary to our existing business plan.
We will focus on building our brand name and our reputation in education business. We believe that building our brand and reputation will allow us to attract new schools and students to our current business lines.
We will continue to acquire new schools and training institutions in cities that exhibit strong enrollment potential.
We select new locations based on various factors, including demographics and the number of schools in, and the economic condition of, the particular region.
This strategic move bolsters our position in the education business and constitutes a great stride towards our goal of becoming a leading for-profit education group in China.
Then the tuition the school collects will represent the key revenue sources and faculty compensation will be the key operation expenses, hence the profit margin. Hartcourt will find and acquire the target schools after evaluating the courses and the market, and put together strong faculty teams, incentive plans and strategic expansion programs.
Accordingly, we decided that Hartcourt should position itself to be a first mover to take advantage of this opportunity. To that end, we are adopting four objectives:
1. acquire the existing vocational schools that we evaluate to be good
2. build a comprehensive nexus of all acquired institutions, with core themes and distribution schemes
3. hire local experienced educators and put together sound operation plans
4. develop the solid relationship with the corporate world to improve the employment rate of our graduates.
We remain optimistic about the future success of the Company and our ability to deliver value to our shareholders. We have the commitment and talents, an engaged and insightful Board, a well-researched business strategy and a value-added execution program.
Conclusion
In this business plan, Hartcourt’s goal is to acquire at least 6 educational subsidiaries with substantial profit within two years and about 12 schools within four years. Also, Hartcourt will build an accrediting institution, which can serve Hartcourt’s vocational school students as well as external students.
Proposed acquisition financing
We will acquire target schools and pay for the acquisition by stock, or stock + cash, or cash according to different style of acquisition targets and different stage of company development.
Accompanying profit growth of company and stronger balance sheet in the future, we will acquire more schools using cash.
Looking forward
With the major hindrance behind us and aggressive restructuring and acquisition under way, we believe Hartcourt can lead the way in delivering exceptional growth, value and opportunity to our shareholders in Fiscal 2009 and beyond.
glückwunsch übrigens an CE, der mit seiner meinung, dass der zhengda deal wahrscheinlich vom tisch ist, richtig lag!
grüße
Rattle
wie wir aus den ersten zeilen des 10K erfahren wurden am 31. mai 2008 sowohl der MOU mit Zhengda als auch das DA mit Taishun Yucai Senior School beendet. beide deals sind also vom tisch.
grüße
Rattle
10K filed...
Form 10-K for HARTCOURT COMPANIES INC
2-Sep-2008
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management discussion and analysis contains comparisons of the results of our operations for the twelve months ended May 31, 2008, for the 12 months ended May 31, 2007.
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal year Fiscal year
ended ended
May 31 May 31
(12 months) (12 months)
2008 2007
Operating expenses:
General and administrative 1,299,858 1,330,560
Depreciation and amortization 13,510 16,776
Impairments-goodwill 682,988 -
Total operating expenses 1,996,356 1,347,336
Loss from continuing operations before other income/(expenses) (1,996,356 ) (1,347,336 )
Other income:
Interest income - 688
Foreign exchange gain - -
Total other income - 688
Loss from continuing operations (1,996,356 ) (1,346,648 )
Discontinued operations:
Gain( Loss) from discontinued operations 22,878 (90,156 )
Provision for loss on disposal of assets pending for sales - (2,349,637 )
Gain/(loss) from discontinued operations 22,878 (2,439,793 )
NET INCOME/(LOSS) $ (1,973,477 ) $ (3,786,441 )
OTHER COMPREHENSIVE ITEM:
Foreign currency translation gain/(loss) (60,754 ) (60,973 )
NET COMPREHENSIVE LOSS $ (2,034,231 ) (3,847,414 )
The following discussion contains forward-looking statements. Forward looking statements are identified by words and phrases such as "anticipate", "intend", "expect" and words and phrases of similar import. We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements due to risks, uncertainties and assumptions that are difficult to predict, including those set forth in Item 1A above. We encourage you to read those risk factors carefully along with the other information provided in this Report and in our other filings with the SEC before deciding to invest in our stock or to maintain or change your investment. We undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law.
You should read this MD&A in conjunction with the Consolidated Financial Statements and Related Notes in Item 8.
Critical Accounting Policies
In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet. We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Senior management has discussed the development and selection of these critical accounting policies and their disclosure in this Report with the Audit Committee of our Board of Directors. We believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments: revenue recognition; allowance for doubtful accounts; income taxes; stock-based compensation; asset impairment.
Revenue Recognition
In accordance with generally accepted accounting principles ("GAAP") in the United States, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collection of the resulting receivable is reasonably assured. Noted below are brief descriptions of the product or service revenues that the Company recognizes in the financial statements contained herein.
Revenue from the trading of commodities is recognized as the cash is received. Such revenues are cash basis only, and are not accrued.
Revenue from service contracts associated with the investment portfolio is recognized as the cash is received. Such revenues carry significant credit risk, and accrued only when collection is reasonably assured. Payments received in advance are deferred until the service is provided.
Amounts collected prior to satisfying the above revenue recognition criteria are included in advance from customers.
Allowance for doubtful accounts
We maintain an allowance for doubtful accounts to reduce amounts to their estimated realizable value. A considerable amount of judgment is required when we assess the realization of accounts receivables, including assessing the probability of collection and the current credit-worthiness of each customer. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, an additional provision for doubtful accounts could be required. We initially record a provision for doubtful accounts based on our historical experience, and then adjust this provision at the end of each reporting period based on a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, we consider: (i) the aging of the accounts receivable; (ii) trends within and ratios involving the age of the accounts receivable; (iii) the customer mix in each of the aging categories and the nature of the receivable; (iv) our historical provision for doubtful accounts;
(v) the credit worthiness of the customer; and (vi) the economic conditions of the customer's industry as well as general economic conditions, among other factors.
Income taxes
We account for income taxes in accordance with SFAS No. 109, ACCOUNTING FOR INCOME TAXES. SFAS 109 prescribes the use of the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we establish a valuation allowance. To the extent we establish a valuation allowance, or increase or decrease this allowance in a period, we increase or decrease our income tax provision in our statement of operations. If any of our estimates of our prior period taxable income or loss prove to be incorrect, material differences could impact the amount and timing of income tax benefits or payments for any period.
The Company operates in several countries. As a result, we are subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various taxing authorities. Our operations in these jurisdictions are taxed on various bases: income before taxes, deemed profits and withholding taxes based on revenue. The calculation of our tax liabilities involves consideration of uncertainties in the application and interpretation of complex tax regulations in a multitude of jurisdictions across our global operations.
We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. The tax liabilities are reflected net of realized tax loss carry forwards. We adjust these reserves upon specific events; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is different from our current estimate of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in the period when the contingency has been resolved and the liabilities are no longer necessary.
Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year.
Stock-Based Compensation
The Company adopted SFAS No. 123 (Revised 2004), Share Based Payment ("SFAS No. 123R"), under the modified-prospective transition method on June 1, 2006. SFAS No. 123R requires companies to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value. Share-based compensation recognized under the modified-prospective transition method of SFAS No. 123R includes share-based compensation based on the grant-date fair value determined in accordance with the original provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for all share-based payments granted prior to and not yet vested as of June 1, 2006 and share-based compensation based on the grant-date fair-value determined in accordance with SFAS No. 123R for all share-based payments granted after June 1, 2006. SFAS No. 123R eliminates the ability to account for the award of these instruments under the intrinsic value method prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and allowed under the original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted for the Company's stock option plans using the intrinsic value method in accordance with the provisions of APB Opinion No. 25 and related interpretations.
Asset Impairment
We periodically evaluate the carrying value of other long-lived assets, including, but not limited to, property and equipment and intangible assets, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Significant estimates are utilized to calculate expected future cash flows utilized in impairment analyses. We also utilize judgment to determine other factors within fair value analyses, including the applicable discount rate.
Results of Operations
Our operations for the fiscal years ended May 31, 2008 and years ended May 31, 2007 consisted of operations of Huaqing (51% indirect ownership interest), Hartcourt Capital Inc. (100% ownership interest), Hartcourt China, Inc. (100% ownership interest), and Ai-Asia Inc. (100% ownership interest), and Hartcourt's investments in other entities located in Hong Kong and China.
The following discussion and analysis are based on the historical figures and information and reflect not only our former IT business, which we are in the process of exiting, but also our education business. As noted above, the Company is in the process of selling its traditional IT business and focusing on the growing Chinese vocational training market instead.
Fiscal Year Ended May 31, 2008 Compared to Fiscal Year Ended May 31, 2007
Operating revenue:
On June 13, 2007, the Company entered into a nonbinding Memorandum of Understanding to sell its 51% interest in Shanghai Huaqing Corporation Development Ltd. ("Huaqing Shanghai"). As such, the IT distribution business was reclassified as discontinued operations in the financial statements. As a result, there is no operating revenue or cost of sale for the fiscal year ended May 31, 2008 and year ended May 31, 2007.
General and administrative expenses:
Our general and administrative expenses were US$1,299,858 for the fiscal year ended May 31, 2008 compared to US$1,330,560 for the same periods in 2007, an decrease of US$30,702 or 2% compared to the fiscal year ended May 31, 2007. The decreased expenses for the fiscal year ended May 31, 2008 and year ended May 31, 2007 were related primarily to the reduced professional service fee.
Depreciation and amortization expenses:
Our depreciation and amortization expenses were $13,510 for the fiscal year ended May 31, 2008 compared to $16,776 for the same periods in 2007 or 19% decrease. The decrease was primarily due to the finished amortization of some fixed assets during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Interest income:
Interest income was zero and $688 for the fiscal years ended May 31, 2008 and May 31, 2007. The US$688 decrease was mainly due to lower cash balances.
Interest expenses::
All the interest expenses were incurred by Shanghai Huaqing, a 51% owned subsidiary, from short-term bank loans to finance the Samsung distribution business. The operation of Huaqing was reclassified as discontinued operations in the financial statements and therefore there was no interest expenses during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Income (Loss) from Continuing Operations:
Loss from continuing operations for the fiscal year ended May 31, 2008 was $1,996,356, compared to $1,346,648 for the fiscal year ended May 31, 2007. The loss increased primarily because the Company no longer has revenue following the reclassification of the IT distribution business as discontinued operations.
Discontinued operations:
During the fiscal years ended May 31, 2008 and May 31, 2007, the discontinued operations represent the operating results of Shanghai Huaqing, which was determined by the management to be disposed.
Minority interest:
Minority interest represented the profit shared by the minority shareholders of Shanghai Huaqing (49%). The operations of Shanghai Huaqing were reclassified as discontinued operations in the financial statements and therefore there was no minority interest during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Income tax:
The Company had no revenue during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007. As a result, no income tax was paid during the same period.
Liquidity and Capital Resources:
As shown in our accompanying financial statements, we had a net loss of $1,973,477 for the fiscal year ended May 31, 2008 as compared to a net loss of US$3,847,414 for the same periods in 2007. Our current liabilities exceeded our current assets by $1,635,474 as of May 31, 2008.
As disclosed before, the Company entered into a Memorandum of Understanding to sell its Samsung business, the only IT business that the Company has remaining, and focus on the growing Chinese vocational training marketplace. On June 13, 2007, the Board of Directors of the Company authorized the disposal of its 51% interest in Shanghai Huaqing to its minority shareholders. As of May 31, 2008, a total of RMB 4,000,000 (US$528,419) and 997,550 shares of the Company's common stock had been received in connection with this disposal. This change likely will have a very significant demand on our capital resources in the near future.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the ordinary course of business.
The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included:
? Look for growth opportunities through acquisitions and mergers with profitable education businesses;
? Raising additional capital; and
? Take measures to control cost and operating expenses
Operating activities:
During the fiscal year ended May 31, 2008, net cash used in operating activities was $638,514, compared to net cash used in operating activities of $639,882 during the fiscal year ended May 31, 2007. The cash used in operating activities in the fiscal year ended May 31, 2008 resulted from loss of $1,973,477 netted against, among other things, stock option costs of $151,060, provision for investment of $70,436 and goodwill impairment of $682,988. The cash used in operating activities in the fiscal year ended May 31, 2007 resulted from loss of $3,786,441 netted against, among other things, stock option costs of $484,308, provision of assets pending for sale of $2,349,637, and prepaid expenses and other receivables of $155,477.
Investing activities:
Net cash provided by investing activities during the fiscal year ended May 31, 2008 was $524,844 compared to net cash used in investing activities of $82,264 for the fiscal year ended May 31, 2007. The cash provided by investment activities in the fiscal year ended May 31, 2008 was due to the cash received upon disposal of assets of $535,704 and cash decrease due to purchase of property and equipment of $10,860. The cash used in investing activities in the fiscal year ended May 31, 2007 was due to our ceasing operation (disposal) of our subsidiary of $77,855 and purchase of property and equipment of $4,684 .
Financing activities:
Cash provided by financing activities during the fiscal year ended May 31, 2008 was $97,966 compared to net cash provided by financing activities of $276,658 during the fiscal year ended May 31, 2007. Cash provided by financing activities during the fiscal year ended May 31, 2008 was primarily due to $38,414 of sales of common stock and proceeds of $59,552 from related parties . Cash Provided by financing activities during the fiscal year ended May 31, 2007 was primarily due to proceeds of $24,286 from related parties and $252,372 of sales of common stock.
Research and Development
Presently the company is not undertaking any significant research and development efforts.
Off-Balance Sheet Arrangements
During the fiscal year ended on May 31, 2008, the Company did not engage in any off-balance sheet arrangements as defined in Item 303(a)(4) of the SEC's Regulation S-K.
das 10K ist raus:
Form 10-K for HARTCOURT COMPANIES INC
2-Sep-2008
Annual Report
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Management discussion and analysis contains comparisons of the results of our operations for the twelve months ended May 31, 2008, for the 12 months ended May 31, 2007.
THE HARTCOURT COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Fiscal year Fiscal year
ended ended
May 31 May 31
(12 months) (12 months)
2008 2007
Operating expenses:
General and administrative 1,299,858 1,330,560
Depreciation and amortization 13,510 16,776
Impairments-goodwill 682,988 -
Total operating expenses 1,996,356 1,347,336
Loss from continuing operations before other income/(expenses) (1,996,356 ) (1,347,336 )
Other income:
Interest income - 688
Foreign exchange gain - -
Total other income - 688
Loss from continuing operations (1,996,356 ) (1,346,648 )
Discontinued operations:
Gain( Loss) from discontinued operations 22,878 (90,156 )
Provision for loss on disposal of assets pending for sales - (2,349,637 )
Gain/(loss) from discontinued operations 22,878 (2,439,793 )
NET INCOME/(LOSS) $ (1,973,477 ) $ (3,786,441 )
OTHER COMPREHENSIVE ITEM:
Foreign currency translation gain/(loss) (60,754 ) (60,973 )
NET COMPREHENSIVE LOSS $ (2,034,231 ) (3,847,414 )
The following discussion contains forward-looking statements. Forward looking statements are identified by words and phrases such as "anticipate", "intend", "expect" and words and phrases of similar import. We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements due to risks, uncertainties and assumptions that are difficult to predict, including those set forth in Item 1A above. We encourage you to read those risk factors carefully along with the other information provided in this Report and in our other filings with the SEC before deciding to invest in our stock or to maintain or change your investment. We undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law.
You should read this MD&A in conjunction with the Consolidated Financial Statements and Related Notes in Item 8.
Critical Accounting Policies
In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet. We believe that the estimates, assumptions and judgments involved in the accounting policies described below have the greatest potential impact on our financial statements, so we consider these to be our critical accounting policies. Senior management has discussed the development and selection of these critical accounting policies and their disclosure in this Report with the Audit Committee of our Board of Directors. We believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments: revenue recognition; allowance for doubtful accounts; income taxes; stock-based compensation; asset impairment.
Revenue Recognition
In accordance with generally accepted accounting principles ("GAAP") in the United States, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collection of the resulting receivable is reasonably assured. Noted below are brief descriptions of the product or service revenues that the Company recognizes in the financial statements contained herein.
Revenue from the trading of commodities is recognized as the cash is received. Such revenues are cash basis only, and are not accrued.
Revenue from service contracts associated with the investment portfolio is recognized as the cash is received. Such revenues carry significant credit risk, and accrued only when collection is reasonably assured. Payments received in advance are deferred until the service is provided.
Amounts collected prior to satisfying the above revenue recognition criteria are included in advance from customers.
Allowance for doubtful accounts
We maintain an allowance for doubtful accounts to reduce amounts to their estimated realizable value. A considerable amount of judgment is required when we assess the realization of accounts receivables, including assessing the probability of collection and the current credit-worthiness of each customer. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, an additional provision for doubtful accounts could be required. We initially record a provision for doubtful accounts based on our historical experience, and then adjust this provision at the end of each reporting period based on a detailed assessment of our accounts receivable and allowance for doubtful accounts. In estimating the provision for doubtful accounts, we consider: (i) the aging of the accounts receivable; (ii) trends within and ratios involving the age of the accounts receivable; (iii) the customer mix in each of the aging categories and the nature of the receivable; (iv) our historical provision for doubtful accounts;
(v) the credit worthiness of the customer; and (vi) the economic conditions of the customer's industry as well as general economic conditions, among other factors.
Income taxes
We account for income taxes in accordance with SFAS No. 109, ACCOUNTING FOR INCOME TAXES. SFAS 109 prescribes the use of the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we establish a valuation allowance. To the extent we establish a valuation allowance, or increase or decrease this allowance in a period, we increase or decrease our income tax provision in our statement of operations. If any of our estimates of our prior period taxable income or loss prove to be incorrect, material differences could impact the amount and timing of income tax benefits or payments for any period.
The Company operates in several countries. As a result, we are subject to numerous domestic and foreign tax jurisdictions and tax agreements and treaties among the various taxing authorities. Our operations in these jurisdictions are taxed on various bases: income before taxes, deemed profits and withholding taxes based on revenue. The calculation of our tax liabilities involves consideration of uncertainties in the application and interpretation of complex tax regulations in a multitude of jurisdictions across our global operations.
We recognize potential liabilities and record tax liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. The tax liabilities are reflected net of realized tax loss carry forwards. We adjust these reserves upon specific events; however, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is different from our current estimate of the tax liabilities. If our estimate of tax liabilities proves to be less than the ultimate assessment, an additional charge to expense would result. If payment of these amounts ultimately proves to be less than the recorded amounts, the reversal of the liabilities would result in tax benefits being recognized in the period when the contingency has been resolved and the liabilities are no longer necessary.
Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability in each taxing jurisdiction could have an impact upon the amount of income taxes that we provide during any given year.
Stock-Based Compensation
The Company adopted SFAS No. 123 (Revised 2004), Share Based Payment ("SFAS No. 123R"), under the modified-prospective transition method on June 1, 2006. SFAS No. 123R requires companies to measure and recognize the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value. Share-based compensation recognized under the modified-prospective transition method of SFAS No. 123R includes share-based compensation based on the grant-date fair value determined in accordance with the original provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for all share-based payments granted prior to and not yet vested as of June 1, 2006 and share-based compensation based on the grant-date fair-value determined in accordance with SFAS No. 123R for all share-based payments granted after June 1, 2006. SFAS No. 123R eliminates the ability to account for the award of these instruments under the intrinsic value method prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and allowed under the original provisions of SFAS No. 123. Prior to the adoption of SFAS No. 123R, the Company accounted for the Company's stock option plans using the intrinsic value method in accordance with the provisions of APB Opinion No. 25 and related interpretations.
Asset Impairment
We periodically evaluate the carrying value of other long-lived assets, including, but not limited to, property and equipment and intangible assets, when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flows from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Significant estimates are utilized to calculate expected future cash flows utilized in impairment analyses. We also utilize judgment to determine other factors within fair value analyses, including the applicable discount rate.
Results of Operations
Our operations for the fiscal years ended May 31, 2008 and years ended May 31, 2007 consisted of operations of Huaqing (51% indirect ownership interest), Hartcourt Capital Inc. (100% ownership interest), Hartcourt China, Inc. (100% ownership interest), and Ai-Asia Inc. (100% ownership interest), and Hartcourt's investments in other entities located in Hong Kong and China.
The following discussion and analysis are based on the historical figures and information and reflect not only our former IT business, which we are in the process of exiting, but also our education business. As noted above, the Company is in the process of selling its traditional IT business and focusing on the growing Chinese vocational training market instead.
Fiscal Year Ended May 31, 2008 Compared to Fiscal Year Ended May 31, 2007
Operating revenue:
On June 13, 2007, the Company entered into a nonbinding Memorandum of Understanding to sell its 51% interest in Shanghai Huaqing Corporation Development Ltd. ("Huaqing Shanghai"). As such, the IT distribution business was reclassified as discontinued operations in the financial statements. As a result, there is no operating revenue or cost of sale for the fiscal year ended May 31, 2008 and year ended May 31, 2007.
General and administrative expenses:
Our general and administrative expenses were US$1,299,858 for the fiscal year ended May 31, 2008 compared to US$1,330,560 for the same periods in 2007, an decrease of US$30,702 or 2% compared to the fiscal year ended May 31, 2007. The decreased expenses for the fiscal year ended May 31, 2008 and year ended May 31, 2007 were related primarily to the reduced professional service fee.
Depreciation and amortization expenses:
Our depreciation and amortization expenses were $13,510 for the fiscal year ended May 31, 2008 compared to $16,776 for the same periods in 2007 or 19% decrease. The decrease was primarily due to the finished amortization of some fixed assets during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Interest income:
Interest income was zero and $688 for the fiscal years ended May 31, 2008 and May 31, 2007. The US$688 decrease was mainly due to lower cash balances.
Interest expenses::
All the interest expenses were incurred by Shanghai Huaqing, a 51% owned subsidiary, from short-term bank loans to finance the Samsung distribution business. The operation of Huaqing was reclassified as discontinued operations in the financial statements and therefore there was no interest expenses during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Income (Loss) from Continuing Operations:
Loss from continuing operations for the fiscal year ended May 31, 2008 was $1,996,356, compared to $1,346,648 for the fiscal year ended May 31, 2007. The loss increased primarily because the Company no longer has revenue following the reclassification of the IT distribution business as discontinued operations.
Discontinued operations:
During the fiscal years ended May 31, 2008 and May 31, 2007, the discontinued operations represent the operating results of Shanghai Huaqing, which was determined by the management to be disposed.
Minority interest:
Minority interest represented the profit shared by the minority shareholders of Shanghai Huaqing (49%). The operations of Shanghai Huaqing were reclassified as discontinued operations in the financial statements and therefore there was no minority interest during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007.
Income tax:
The Company had no revenue during the fiscal year ended May 31, 2008 and the fiscal year ended May 31, 2007. As a result, no income tax was paid during the same period.
Liquidity and Capital Resources:
As shown in our accompanying financial statements, we had a net loss of $1,973,477 for the fiscal year ended May 31, 2008 as compared to a net loss of US$3,847,414 for the same periods in 2007. Our current liabilities exceeded our current assets by $1,635,474 as of May 31, 2008.
As disclosed before, the Company entered into a Memorandum of Understanding to sell its Samsung business, the only IT business that the Company has remaining, and focus on the growing Chinese vocational training marketplace. On June 13, 2007, the Board of Directors of the Company authorized the disposal of its 51% interest in Shanghai Huaqing to its minority shareholders. As of May 31, 2008, a total of RMB 4,000,000 (US$528,419) and 997,550 shares of the Company's common stock had been received in connection with this disposal. This change likely will have a very significant demand on our capital resources in the near future.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of liabilities in the ordinary course of business.
The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included:
? Look for growth opportunities through acquisitions and mergers with profitable education businesses;
? Raising additional capital; and
? Take measures to control cost and operating expenses
Operating activities:
During the fiscal year ended May 31, 2008, net cash used in operating activities was $638,514, compared to net cash used in operating activities of $639,882 during the fiscal year ended May 31, 2007. The cash used in operating activities in the fiscal year ended May 31, 2008 resulted from loss of $1,973,477 netted against, among other things, stock option costs of $151,060, provision for investment of $70,436 and goodwill impairment of $682,988. The cash used in operating activities in the fiscal year ended May 31, 2007 resulted from loss of $3,786,441 netted against, among other things, stock option costs of $484,308, provision of assets pending for sale of $2,349,637, and prepaid expenses and other receivables of $155,477.
Investing activities:
Net cash provided by investing activities during the fiscal year ended May 31, 2008 was $524,844 compared to net cash used in investing activities of $82,264 for the fiscal year ended May 31, 2007. The cash provided by investment activities in the fiscal year ended May 31, 2008 was due to the cash received upon disposal of assets of $535,704 and cash decrease due to purchase of property and equipment of $10,860. The cash used in investing activities in the fiscal year ended May 31, 2007 was due to our ceasing operation (disposal) of our subsidiary of $77,855 and purchase of property and equipment of $4,684 .
Financing activities:
Cash provided by financing activities during the fiscal year ended May 31, 2008 was $97,966 compared to net cash provided by financing activities of $276,658 during the fiscal year ended May 31, 2007. Cash provided by financing activities during the fiscal year ended May 31, 2008 was primarily due to $38,414 of sales of common stock and proceeds of $59,552 from related parties . Cash Provided by financing activities during the fiscal year ended May 31, 2007 was primarily due to proceeds of $24,286 from related parties and $252,372 of sales of common stock.
Research and Development
Presently the company is not undertaking any significant research and development efforts.
Off-Balance Sheet Arrangements
During the fiscal year ended on May 31, 2008, the Company did not engage in any off-balance sheet arrangements as defined in Item 303(a)(4) of the SEC's Regulation S-K.
das FALSCH! bezog sich auf die damalige aussage, dass die neue CFO die einzige wäre, die am aktuellen filing arbeitet. das war tatsächlich falsch.
mit der bemerkung, die neue CFO müsse wohl erst noch eingearbeitet werden, liegt CE meiner meinung nach gar nicht so daneben. wenn ich für fehler in diesem filing persönlich und auch mit meinem privaten vermögen haftbar gemacht werden könnte, würde ich aber auch genau hinschauen, was ich da unterschreibe! ich nehme an, dass daher die verzögerung kommt.
grüße
Rattle
eben. entweder müsste morgen das 10K oder das NT10K-filing kommen.
grüße
Rattle
meiner meinung nach müsste das 10K spätestens morgen kommen, oder nicht? 31.5. + 90 tage ergibt den 29.8.
grüße
Rattle
ich möchte mal noch das 10K abwarten, das ja diese woche kommen sollte und noch ein paar tage danach. ich würde ungern jetzt drauf hauen, wenn das management gerade von selbst handelt. wenn bis fünf handelstage nach dem 10K nichts kommt, geht die mail raus. ich schicke sie dann auch allen in kopie, die mich angeschrieben haben, natürlich ohne namensliste hintendran.
übrigens ist die summe meiner sammlung von aktionärsstimmen inzwischen bei über 3,8 mio. angelangt!
grüße
Rattle
ich bin erstaunt, dass niemand eine meinung zu der gestrigen ersten zaghaften kommunikation mit den aktionären hat. dann poste ich meine mal.
zunächst halten wir mal fest, dass die ankündigung von anfang juli, dass mr. hu bald mit den aktionären kommunizieren wird, nun umgesetzt wurde. viel später als erwartet, aber dafür mit interessanten details über Beijing Yanyuan.
1. offenbar hat mr. hu ein hoch effektives trainingsprogramm entwickelt, um welches sich die studenten und die mediale öffentlichkeit gerade zu zu reißen scheinen. wir können das nur glauben, wirklich bewerten kann das wohl keiner von uns. aber nehmen wir mal an, dem ist so.
2. das programm muss solchermaßen anerkannt sein, dass allein die teilnahme daran die chancen für eine aufnahme an eine top universität gewaltig erhöht. schon deswegen bezahlen eltern ohne zu zögern zusätzlich geld, um ihren kindern die teilnahme zu ermöglichen. das klingt wie musik in meinen ohren!
3. zusätzlich wird das programm durch bücher, CDs, u.ä. ergänzt, die das training unterstützen und zu weiteren einnahmen führen.
4. in diesem jahr hat Beijing Yanyuan ein neues businessmodell gestartet. das ist meiner meinung nach unheimlich geschickt und der schlüssel zu explosivem wachstum!
man schließt partnerschaften mit anderen schulen, und gibt ihnen die lizenez, das trainingsprogramm anbieten zu dürfen und es in ihrer provinz weiter auszurollen. in einem ersten test dieses modells wurde diese partnerschaft mit zwei schulen geschlossen. wir konnten das ja schon auf der webseite lesen.
warum ist das so genial?
erstens klingelt sofort die kasse. für die teilnehmer an "unseren" kursen werden deutlich höhere gebühren fällig als im durchschnitt üblich. je nach region und art der partnerschule kassiert Beijing Yanyuan zwischen 40% und 60% der trainingsgebühren sofort.
zweitens, und deswegen ist es so geschickt, übernimmt die partnerschule praktisch den gesamten aufwand zur etablierung und abhaltung der kurse. auch das lizenzieren weiterer schulen in der jeweiligen provinz und damit den weiteren rollout des trainingsprogrammes übernimmt der partner. damit werden langfristig weder bei Beijing Yanyuan noch bei Hartcourt irgendwelche ressourcen blockiert. die marge muss gewaltig sein.
und drittens verbreitet sich auf diese art die marke "Beijing Yanyuan" zum vorteil für uns aktionäre übers ganze land. mr. hu spricht von 150 städten in den reicheren regionen des landes, die als potenzielle ziele für den rollout des programmes in frage kommen. wenn man das langsam und weise wachsen lässt, ist das potenzial mit sicherheit gigantisch. alleine jetzt in dem testlauf konnten schon 1000 studenten für das programm gewonnen werden.
5. am ende folgt der hinweis auf weitere akquisitionen und Hartcourts wichtige verbindungen zum bildungsministerium. dass wir solche verbindungen überhaupt haben, war zwar zu vermuten, ist mir aber neu.
alles in allem ein interessanter überblick und zwischen den zeilen kann man das riesige potenzial erkennen, welches das neue business von Hartcourt bieten könnte. die tochter hat nun gesprochen. es ist an der zeit, dass auch die mutter sich mal äußert.
grüße
Rattle
von der webseite:
08/25/2008 Communication of Beijing Yanyuan (subsidiary of Hartcourt)
Dear Fellow Shareholders:
Hartcourt successfully completed the acquisition of Beijing Yanyuan Rapido on July 23 2008. As the first profitable subsidiary of Hartcourt, we are pleased to become an important member of Hartcourt with a sound business plan to be the leading education group including many schools and training institutions with substantial revenue and profit.
As president of Beijing Yanyuan Rapido(subsidiary of Hartcourt Company Inc), I would like to provide background information of Beijing Yanyuan, summarize recent developments and describe the business strategy of Beijing Yanyuan.
Founded by the Science Park of Peking University, Beijing Yanyuan is a well-known training institution. Beijing Yanyuan offers a program to help students rapidly improve their school grades. The program has proved to be effective. Beijing Yanyuan is the sole general agent appointed by the Science Park of Peking University to promote and market this training program. Peking University (PKU) was the first national university in Chinese modern history, with a high reputation in and outside China. Owing to the background of Peking University, abundant teaching resources, and a management team consisting of education experts and professors, Beijing Yanyuan has rapidly built its unique education brand and increased its market share to become a leading training institution nationwide.
The program offered has been verified by over 20 educational experts in Peking University, and has proven to be effective through the success in college entrance examinations of numerous students trained by this program. The program is a comprehensive integration of brain science, education, psychology, medicine, neural linguistics, and the human body works science. The program can help students to greatly shorten the time for studying, and rapidly improve the work efficiency and academic performance. The program has a tremendous impact nationwide and has been applauded by numerous educational experts, parents and students. More than 100 media personnel competed to report on the program. A number of radio and television stations invited us to give special lectures. The program has helped numerous students to achieve a substantial improvement on academic performance within short time. The program mainly does special training so the students can reach their potential development, establish proper habits and learn time management. After trained by the program, students are more apt to enter into top high schools and universities, which is why parents don’t mind paying extra higher tuition fees for their children to be trained by this program.
Application to the program, we have designed a full set of complementary prescribed textbooks used in China’s primary and secondary school curriculum, covering subjects such as English, Chinese, mathematics, physics, chemistry, biology, geography, political science and history. We offer a wide range of education and test preparation courses such as books, software, CD-ROMs, magazines, other periodicals and other related services and products to students, supplemented by our proprietary textbooks, tutoring, online assignments and exercises, mock examinations and other forms of course-related support.
We believe our strong brand has now become widely recognized in China as a leading source for training, test preparation and continuing education within China's education industry.
In addition to our revenue of training services, we also sell books and reference materials through third-party bookstores and distributors across China.
Given our mature strong brand and wide education market, we started a new business strategy to expand our market share through cooperation with more schools from this year. This business strategy can establish a highly scalable and adaptable business model using our program and experienced management team.
As a first trial, we signed a cooperation agreement with 2 partner schools, one located in Henan province, and the other in Shandong province.
Relying on our unique program, substantial experience in training students, strong brand, first-class teaching team, and quality teaching resources of Peking University, we are in charge of offering effective training to enrolled students by school partners.
The school partners under cooperation have the qualification for a province-wide enrollment, with substantial operation and management experience, perfect teaching equipment, beautiful campus, advanced teaching management and comfortable student dormitories.
The cooperation objectives are to fully integrate resource advantages of both sides, execute a set of effective and excellent educational and management models under the existing education system, and to truly improve the teaching quality and students achievements, on the basis of sincere cooperation, equality and mutual benefit, and common development. Both partner schools and us, cooperate to establish special classes to recruit full time students with a tuition fee higher than the ordinary level, recognized by both parties. Beijing Yanyuan will receive 40% - 60% tuition fees charged by school partners from enrolled students as our service and brand income, the ratio will be different based on the region and style of school partners.
The work of recruiting full time students is basically over by August 24 2008. For the academic year starting September 2008, we had about 1,000 students enrolled with the two school partners under cooperation.
According to our new business model, our relationships with our school partners are structured either as collaborative alliances or as long-term contractual service arrangements. We receive program service and brand fees equal to an agreed portion of tuition fees collected by the school partners from the enrolled students.
As the subsidiary of Hartcourt Company Inc with substantial resources in the education area, we intend to concentrate on adding more school partners in the coastal and relatively more affluent regions of China, which include approximately 150 cities that exhibit strong enrollment potential.
We believe our unique program has been and will continue to be well-received by parents and students due to the special effectiveness to improve examination grades. Such differentiation also enables these school partners to collect higher tuition fees from the students enrolled.
We firmly believe we will finish the successful expansion under the guidance of Hartcourt, which will have further successful acquisitions using its substantial social resources in Ministry of Education (MOE).
Best Regards
Zhenyu Hu
President of Beijing Yanyuan Rapido Education Co.
Best
Regards
Victor Zhou
CEO of Hartcourt Company Inc.
gegenfrage. ich setze voraus, dass dir die seltsamen tradingmuster nicht entgangen sind. welche erklärung hast du denn dafür?
muss jetzt leider weg. schaue heute abend nochmal rein...
grüße
Andreas
hallo nochmal an alle:
da wir aktuell wieder in einem informationsloch hängen, möchte ich die zusammenfassung unserer fragen noch um einen wichtigen teil erweitern.
ich werde mich im namen aller aktionäre, die das genauso sehen, mal ordentlich bei hartcourt mit einer direkten mail an alle im board of directors über die IR/PR-arbeit beschweren. so eine beschwerde hat natürlich nur sinn, wenn so viele wie möglich unterschreiben und wir auch klar machen, welche aktienzahl wir vertreten.
wenn ihr solch einen appell unterstützt dann schickt mir bitte eine mail an therattlesnakesmail@yahoo.de.
ich benötige mindestens namen und vornamen, damit hartcourt prüfen kann, dass wir wirklich aktionäre sind. wenn ihr eure derzeit gehaltene aktienzahl noch dranhängt, wäre das perfekt.
grüße
Rattle