Press Release Source: The Hartcourt Companies, Inc.
Hartcourt Reports Profitable Second Quarter
Wednesday August 6, 8:46 am ET
Revenue Increased to $28 Million and Net Profit Was $463,378
LOS ANGELES, Aug. 6 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt:
900009),
www.hartcourt.com , today reported financial results for the second quarter of 2003. Revenues for the quarter were $ 28,112,109 as compared to $1,795,965 for the same quarter of 2002. Hartcourt recorded a net profit of $463,387 or $0.004 per share, as compared to a loss of $1,061,185 during the same quarter of 2002.
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The increase in revenue was due to the consolidation of two-month operation of NewHuaSun and Guo Wei and three-month operation of HuaQing. Revenue of ZhongNan, a recent acquisition, would be recorded in Q3. The cash position has improved from $79,845 as of 31 December 2002 to $6,085,682 as of 30 June 2003. The current ratio of assets over liabilities remains positive.
Mr. Richard Yan, Acting CFO of Hartcourt, comments, "The positive trend should continue in Q3 and Q4 as new acquisitions are coming on stream. Our financial priorities now are building a stronger cash position and to strengthen our internal audit control to prepare for 2004. That will be a crucial year to achieve the ambitious goal of our business strategy."
Since February 2003, Hartcourt has acquired controlling interest of HuaQing, NewHuaSun, GuoWei and ZhongNan, all top PC marketers and distributors 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 2006.
The company marks its 20th anniversary on August 7th, 2003 by hosting a reception at the Four Seasons Hotel in Shanghai. Over 150 dignitaries from IT industries, multi-nationals, financial institutions, government and media are expected to attend the event.
About Hartcourt
The Hartcourt Companies, Inc. is an investment and development company focusing on the acquisition and consolidation of fast-growing IT companies in China. Detailed information on Hartcourt can be obtained via its web site:
www.hartcourt.com.Forward-looking statements