New Year Message to Shareholders From Mr. Victor Zhou, CEO of The Hartcourt Companies, Inc.
Hartcourters should greet 2007 with hope and optimism. This is essentially a new born company with a vivid vision, clearly-defined missions and a solid business plan. Our company's operation organ has never been stronger after the IT bubble broke early in the decade, or the century. As the second half of 2006 showed, it is also a company with a brave heart to face the difficulties and to solve them.
The strength of the Hartcourt is not only shown in the new business field, i.e., vocational education in China, but also embedded in the new management's determined mind to run the company's operations as its own business, instead of letting other people manipulate the operation results. Old Hartcourt was so vulnerable since it conducted business as a passive investor without installing reliable monitoring systems in the portfolio companies. We reformed the company's operation strategy. That reform process was maintained to the full in 2006. It must, and will, continue in 2007.
We cannot fall into the complacent belief that the profits of the company can be generated from signing MOUs or even definitive merger agreements, which we did, without constant effort and, where necessary, change and innovation in the operation mechanisms.
High sales and profit growth is crucial to Hartcourt's future. Since we have already decided the business plan and operation strategy, the only way leading to the great numbers is to work hard and smartly. The new management team fully appreciated that our goals are to make profit for the company so the share price will be higher and employees can get raised.
In 2007, while focusing on expanding the business by continuously acquiring schools, which helps build Hartcourt to be a top vocational education group, the management will not ignore the economic efficiency of the acquisitions. We don't want to be a big company without realization of the expected profit levels.
At this time let us all remember the great work of all of our staff and independent professionals, i.e., DWT lawyers, King & Wood lawyer, Kabani Accountants and KRC consultants, who do so much to make the New Year as another higher step for Hartcourt. Also, let us all thank the shareholders who expressed their continuous support and understanding to the new management team.
Dr Hu joins me in wishing all Hartcourters a happy and peaceful new year.
01 January 2007
Victor Zhou
Chief Executive Officer
P.S. Das Jahr des Schweines ist unser!!! Frohes neues Jahr und viel Glück in 2007!
Gustav
