NEWS! NEWS! NEWS!(InternetWire) Hartcourt Reports Record Third Quarter Results
Hartcourt Reports Record Third Quarter Results
Revenue Increased to $33 Million in the Second Consecutive Profitable
SHANGHAI, CHINA -- (MARKET WIRE) -- 11/03/03 -- The Hartcourt
Companies, Inc. (OTC BB: HRCT) (Frankfurt: 900009),
www.hartcourt.com, China's fastest growing IT distribution and retail
company, today reported financial results for the third quarter
ending September 30, 2003.
The company reported total revenues of $ 33,665,719, an increase of
20% over $28,112,109 reported in the previous quarter and an increase
of 3124% over $1,044,252 reported in the same period in 2002. Net
profit for the quarter totaled $514,204, as compared to the previous
quarter's net profit of $463,387. The same quarter in 2002 had a net
loss of $77,301.
The third quarter's financial results reflect the solid execution of
the Company's mission: to be China's leading IT and Mobile
distribution and retail company. During the third quarter Hartcourt's
revenues were derived from the operations of its subsidiaries:
HuaQing, NewHuaSun and GuoWei. The fourth acquisition, ZhongNan, was
completed in October 2003, and its financial performance will be
recorded starting Q4 2003.
Hartcourt's profit from continuing operations in the third quarter
grew 1056% to $635,567 compared to the previous quarter of $55,002,
underscoring the success of Hartcourt's restructuring of its core
business and its sustainable profitability.
Hartcourt's cash position has improved to $7,384,200 as of September
30, 2003 from $79,845 as of December 31, 2002. The current ratio of
assets over liabilities remains positive. Most importantly, the cash
flow from operating activities was $617,596 during the third quarter.
Mr. Richard Yan, Acting CFO of Hartcourt, comments, "This quarter
represents our second consecutive report of operating profitability
for the company. Through consistent execution, Hartcourt's positive
financial trend should continue in Q4 as ZhongNan's financial results
will be added to Hartcourt's total revenue and net profit. It gives
the Company a strong financial footing to capture future
opportunities for growth and consolidation of the IT and Mobile
distribution and retail sector. Hartcourt is well positioned to take
advantages of China's continuing double digit growth in corporate and
consumer IT products spending."
Since February 2003, Hartcourt has acquired controlling interest of
HuaQing, NewHuaSun, GuoWei and ZhongNan, all top IT distributors and
retailer in China and dominant players in their own geographical
areas. The combined revenue in 2002 of these subsidiaries was US$181
Million with a net profit of US$3.1 Million. IDC expects the PC
market in China to grow an average of 18-22% percent from now to
The Hartcourt Companies, Inc. is one of China's fastest growing
companies in the IT distribution and retail services sector.
Hartcourt's growth strategy is to acquire controlling interests in
profitable companies with proven management within this sector in key
geographical areas of China. Recent acquisitions of Hartcourt
included four major IT distribution and retail services companies in
Eastern and Southern China (amongst the highest GDP-per-capita in
China) that have a combined revenue of US$181 Million and net profit
of US$3.1 Million in 2002. Detailed information on Hartcourt can be
obtained from: www.hartcourt.com.
The statements made in this press release, which are not historical
facts, contain certain forward-looking statements concerning potential
developments affecting the business, prospects, financial condition
and other aspects of the company to which this release pertains. The
actual results of the specific items described in this release, and
the company's operations generally, may differ materially from what
is projected in such forward-looking statements. Although such
statements are based upon the best judgments of management of the
company as of the date of this release, significant deviations in
magnitude, timing and other factors may result from business risks
and uncertainties including, without limitation, the company's
dependence on third parties, general market and economic
technical factors, the availability of outside capital, receipt of
revenues and other factors, many of which are beyond the control of
the company. The company disclaims any obligation to update
information contained in any forward-looking statement.
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