Tin-berry. . .
This is a perfect example of what I never want to see again:
February 27th, 2000
Dear Shareholders:
As you may know, I just returned from China. It was
a week well spent, we completed many important tasks as
we continue to make good progress. I would like to give
you a brief summary of our activities.
First of all, executives of Sinobull.com and a few
investment bankers, together with the Ernst & Young team,
met at the majestic board room of the E&Y headquarters
in Kowloon for 2 days to work on finalizing portions of
the IPO process. We worked on the final draft of the
E&Y report, particularly on the financial figures and
future projections. We discussed the official launching
of the fully functional Sinobull.com website; and the
integration of all operations under one management team.
We interviewed the final CEO candidates and met with
prospective Board members. We also went into details
on the challenges facing us, from competitors to new
market conditions and normal legal issues with the IPO.
I am happy to report that everything worked out
well, as anticipated and Sinobull.com is on its way to
becoming the first online trading and financial portal
IPO of Mainland China. We also had a good laugh at the
buying frenzy surrounding the IPO of Tom.com in Hong
Kong. Tom.com reported a revenue of about $400,000 US
and a net loss of $17 Million US in 1999. Yet, the
market capitalization of Tom.com reached $2.5 Billion US
and kept climbing. By comparison, the 5 companies
comprising Sinobull.com had consolidated revenues of
$6 Million US and a net profit of $42,000 US in 1999.
Second, we concluded 3 more deals with 3 Chinese
companies. Details of these transactions will be made
public shortly, once the parties review and approve the
news announcements. All of these acquisitions are
strategically important for maintaining a leading market
position for Sinobull.com and Hartcourt.
Third, we understand the importance of infusing new
talented and energetic management into the Hartcourt
team to bring us to the next level. The CEO and CTO
positions have been filled and an announcement will be
made once the Board approves the compensation packages.
I will continue to build and develop Hartcourt with my
full efforts through the position of Chairman. We are
excited about the abilities and experience of these new
executives and believe that their talents will help make
Hartcourt grow faster and better.
Finally, the PR campaign for Hartcourt will be
timed to coincide with the Nasdaq NMS listing and the
hard launch date of the Sinobull.com website. I believe
you won't be disappointed with our aggressive plan.
Over all, we maintain our momentum and continue on
to our goals. At times, there may be minor delays or
adjustments; but our focus, determination and execution
are relentless. Nobody could accuse us of being lazy or
half-hearted. Winners expect to win in advance because
life is a self-fulfilling prophecy.
See you at the top.
Sincerely,
Dr. Alan V. Phan
Chairman & CEO
Certain statements in this letter may constitute
"forward - looking" statements within the meaning of
Section 21E of the Securities Exchange Act of 1934.
Such "forward - looking" statements involve risks,
uncertainties and other factors, which may cause the
actual results, performance or achievements expressed
or implied by such "forward - looking" statements to
differ materially.
