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Jemand

11/10/10 2:38 PM

#24449 RE: Franz Beckenbauer II #24448

HAllo die Herren,
anbei al die erste Antwort die ich auf meine Fragen bekommen habe.
positiv ist anders aber auch nix genaueres:


Dear Mr. JEMAND:

Thanks for your letter. As the representative of President Li Wanshou, please let me explain the matter that you concern about Hartcourt Company.

First of all, President Li has already resigned from his position as Chairman of the Board of Hartcourt Company since four months ago. Therefore, the information about Hartcourt Company we can know and we can explain are only the information in his tenure, and we can not answer the information after President Li ended his tenure. We appreciate your understanding. Thanks!

About the Sino-Canada deal, initial talks on this issue went quite well, but the later communication and work between financial officers of Hartcourt and staff of the partner company didn’t go well. The cooperation between two sides didn’t run smoothly. Then we don’t know the following things of this project after President Li’s tenure.

Besides, the fact is that the CEO of Hartcourt can not do long-term daily work, and also can not fulfil his work responsibilities and obligations for the company. Actually he disappeared for a long time, President Li also can't contact with him. After this, President Li once proposed to Board of Directors for replacing the CEO. However, this proposal didn’t receive the consent of other directors, which because these directors maintain a good personal relationship with the CEO. Moreover, President Li also proposed to be the CEO of Hartcourt by himself, so he could exercise his duties to deal with company business, including finance, auditing and projects (eg. Sino-Canada project). However, directors still didn’t agree his proposal.

In fact, President Li has always been committed to standardizing the management and operation of Hartcourt during his tenure, as well as deal with various difficulties and risks. Since Hartcourt could not submit audit reports to the tax authorities, company may be suspended. President Li upgraded CEO’s wife to Vice president to ride out the storm and to ensure the company will not be suspended. As I mentioned before, we still don’t know the following things because of President Li’s resignation.


What we only know about Mr. Victor Zhou is that, it is said that he was under investigation. But we don’t know any other information about Mr. Victor Zhou. We also have no objection to the shareholders of Hartcourt to take proper legal actions.

We appreciate your understanding and support. Thanks again for your kind patience.

Have a nice day!

Regards,

Huang Xi

Shenzhen Capital Group Co., Ltd.