SwingTrade Member Forum

[showmethemoney]

NEWS! NEWS! NEWS!
(PR NEWSWIRE) Hartcourt Filed Third Quarter Results (10QSB)
Hartcourt Filed Third Quarter Results (10QSB)

LOS ANGELES, Nov. 17 /PRNewswire-FirstCall/ -- The Hartcourt Companies,
Inc. (OTC Bulletin Board: HRCT) (Frankfurt: 900009), www.hartcourt.com ,
China's fastest growing IT distribution and retail company, today filed 10QSB
for the third quarter ending September 30, 2003.

Financial Highlights for the Third Quarter 2003:
-- Total revenues grew by 3,124% year-over-year to US$34 million led by
growth in the Company's IT distribution and retailing business
-- Gross profit margin increased to 5.5%
-- Net profit reached US$0.5 million compared to net loss of
US$0.08 million of the same quarter in 2002.

The Company reported total revenues of US$33,665,719 for the third
quarter, a 20% increase over total revenues of US$28,112,109 for the preceding
quarter ended June 30, 2003 and a 3,124% increase over total revenues of
US$1,044,252 for the corresponding period in 2002. The Company reported a net
profit of US$514,204, or US$0.0034 per share, compared to the previous
quarter's net profit of US$463,387, or US$0.0037 per share. The same quarter
of the previous year had a net loss of US$77,301.
The drastic turnaround of Hartcourt's financial performance compared to
2002 was attributed to its core business restructuring. The company adopted an
aggressive expansion strategy in IT distribution and retailing, taking
advantage of China's long-term economic growth and continuous double digit IT
spending growth. Through its acquisition programs, Hartcourt is consolidating
the fragmented industry and bringing together a group of complimentary
businesses with strong regional foothold.
Revenues from IT distribution and retailing business for the quarter were
US$33,231,991, representing an 18.5% increase over the preceding quarter's
US$28,047,163. The ratio of distribution and retail revenue is 72:28. The
increase was the result of the consolidation of three months' operations of
GuoWei and NewHuaSun, instead of only two out of three months in the previous
quarter. Hartcourt has also completed its acquisition of WenZhou ZhongNan
Group in October 2003, which should enlarge our marketing network and
capabilities. Financial results of ZhongNan will be consolidated starting
Q4 of 2003.
Revenues from financial data services for the quarter were US$108,585,
representing an 81.4% increase over the preceding quarter's US$59,869 and a
48.9% decrease over US$212,725 for the corresponding period a year ago.
Growth in this revenue segment was largely due to the gradual recovery of Hong
Kong's financial market. On 9 October 2003, Hartcourt filed Schedule 14C with
SEC to distribute all outstanding shares of Financial Telecom Limited (USA)
Inc. to all Hartcourt's shareholders on record date of 17 October 2003. As a
result, Hartcourt will exit the financial data services business and will no
longer include any of its financial results in the future.
Revenues from consulting service for the quarter were US$325,143,
representing a 6,304% increase over US$5,077 for the preceding quarter. The
increase of consulting service revenues was attributed to the increased M&A
and related activities of our acquisition program.
Gross profit for the quarter were US$1,853,265, an increase of 68.6% over
the previous quarter of US$1,099,464 and 1,961% over US$89,941 for the
corresponding period a year ago. The increase in gross profit was contributed
primarily to the increase of revenues.
Total operating expenses for the quarter were US$1,012,841, an increase of
31.6% from the previous quarter of US$778,756 and a 6.1% decrease over
US$1,091,563 from the corresponding period a year ago. This increase was
largely due to the consolidation of three months' operational results of
GuoWei and NewHuaSun, instead of two months recorded in previous quarter.
Total operating profit for the quarter were US$828,255, representing an
improvement over last quarter's operating profit of US$320,708, or an increase
of 158%. In the third quarter of previous year, the Company had an operating
loss of US$1,001,622.
Total net profit for the quarter (after minority interests and income tax)
were US$514,204, an increase of 11.0% over the previous quarter's net profit
of US$463,387 and comparing well to the net loss of US$77,301 for the
corresponding period a year ago. Minority interests accounts for almost
50% of the total net profit.
As of September 30, 2003, the Company's total cash balance was
US$7,384,200, an increase of 21.3% over previous quarter of US$6,085,682. The
cash balance as of 31 December 2002 was US$79,845.
Commenting on Q3 results, David Chen, President and CEO of Hartcourt said,
"The financial performance of this second profitable quarter is the result of
the consistent execution of our business strategy. Our revenues in IT
distribution and retailing sector continue to be robust and the trend will
continued in Q4 as ZhongNan results will be added to our financial statements.
The spin-off of FTL will further enable us to focus our resources in our core
business. We believe profitable companies will continue to join Hartcourt,
creating the top marketing network in China."
"Hartcourt continues to be well positioned to achieve its goals, both in
terms of our rapidly growing distribution network and our compelling business
strategy. We will continue to focus on making additional acquisitions that
will take us closer to being the leading player in the sector."

About Hartcourt
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). Detailed information on Hartcourt can be obtained
from: www.hartcourt.com .

Forward-looking statements
The statements made in this press release, which are not historical facts,
contain certain forward-looking statements concerning potential developments
affecting the business, prospects, financial condition and other aspects of
the company to which this release pertains. The actual results of the
specific items described in this release, and the company's operations
generally, may differ materially from what is projected in such forward-
looking statements. Although such statements are based upon the best
judgments of management of the company as of the date of this release,
significant deviations in magnitude, timing and other factors may result from
business risks and uncertainties including, without limitation, the company's
dependence on third parties, general market and economic conditions, technical
factors, the availability of outside capital, receipt of revenues and other
factors, many of which are beyond the control of the company. The company
disclaims any obligation to update information contained in any forward-
looking statement.

SOURCE The Hartcourt Companies, Inc.
-0- 11/17/2003
/CONTACT: Ms Cathy Kuang of The Hartcourt Companies, Inc.,
+011 8621 52130673, or fax, +011 8621 5213 0664, [e-mail]/
/Web site: http://www.hartcourt.com /
(HRCT)

CO: Hartcourt Companies, Inc.
ST: California, China
IN: CPR REA OTC
SU: ERN
*** end of story ***