HRCT...has been having some good news lately...first an overview.. (got all this stuff from threads here and there)
WHAT IS HARTCOURT?
HARTCOURT (HRCT - NASDAQ: OTCBB) is poised to become
THE GIANT in China Internet.
HARTCOURT is:
ú UAC ONLINE TRADING -- China's first and only on-line trading company.
ú FINANCIAL TELECOM LTD - Financial data provider in Hong Kong
ú INNOSTAR HITECH ENTERPRISES - China wireless ISP and IP phone service
COMPANY INFORMATION
Ticker Symbol: OTC: BB HRCT
Total Issued & O/S: 19,635,817 at 6/30/99
Inside Ownership: 6 Million
Est. Public Float: 11 Million
Approx. Mkt. Cap: $21.8 Million
Current Bid Price: $1.11 at 10/28/99
COMPANY OVERVIEW
The Hartcourt Companies, Inc. (OTCBB: HRCT), established in 1990, was initially a manufacturer and distributor of writing instruments with facilities in China, Mexico, Arizona and California.
In March of 1999, the company went forward with a major restructuring, contributing all of its major Investments to a newly formed subsidiary, Enova Holdings, Inc. (Enova). Effective March 31, 1999, the Company contributed its investment in Enova to its shareholders. As a result, Hartcourt effectively became a shell corporation with no operations and its principal assets being investment securities received in exchange for its investment in the Peony Gardens condominium project.
Hartcourt's new international growth strategy has focused on acquiring companies in the Internet sector - specifically in China and Asia. To this end, the Company is in the process of finalizing and securing financing for three separate ventures. Each transaction is subject to the Company's ability to obtain funding for the transaction
1. UAC ONLINE TRADING: First, the Company has agreed to purchase 35% of UAC Online Stock Trading Ltd ("UAC") for $2.5 million. UAC is a company providing on-line trade execution for stock brokerage firms in China via an intranet service called CHINAPAC which is owned by China Telecom. UAC intends to use the cash received from the Company to complete the testing and installation of its systems into all 98 offices of Hua Xia Securities in China. Current plans are for all 98 offices of Hoa Xia Securities to be operational within 6 months and up to 4,000 other offices serving 40 million investors by 2004. Projected revenues and net profit are expected to be $41 Million and $22 Million respectively.
Hartcourt owns 35% of UAC with the option to purchase an additional 15% should the government policy change and allow such participation.
UPDATE: On 10/30/99, the company announced that the Joint Venture had been approved by the government. The approval came more quickly than had been expected. This is significant, as it affirms the legality of the Joint Venture and reflects positively on the government/s desire for speedy implementation of the project. This will allow HRCT to convert its 15% option and become a 50% partner in UAC.
2. FINANCIAL TELECOM LTD: In the next transaction and the first to be completed, the Company purchased 58.5% of Financial Telecom Ltd. ("FTL") for $3 million in cash and stock. FTL is a Hong Kong corporation in business since 1983. It provides financial data and real time stock quotes to brokerage firms in Hong Kong via terminals; and individual investors via computer terminals, cable boxes, custom-designed PDA and digital pagers. They are also exclusive agents for Standard & Poor's in Hong Kong. They are planning to go into the China market providing the same services, in addition to creating a financial portal on the Internet for China and Hong Kong investors. They agreed to issue new shares and sell 58% of the company to Hartcourt. The money received will be used to carry out the China expansion plan. Revenues for 1998 were $ 2.3 Million and net profit was $160,000. Revenue is expected to reach $9 Million by 2004.
Management plans to merge FTL & UAC into a newly formed entity, Finnet, which should be an attractive candidate for an IPO.
3. INNOSTAR HITECH ENTERPRISES: The company signed a Joint Venture agreement with Innostar HiTech Enterprises of China to establish a nationwide Internet Service Provider (ISP) and IP phone service in China. Innostar has been operating an IP Phone Service in Beijing for the last 14 months, in cooperation with a leading Chinese telecom company. The Joint Venture will be called INNOSTAR, and should start the operation within 4 months. Innostar will hold 65 percent and Hartcourt will hold 35 percent of ownership in the Joint Venture.
Innostar also owns the license for a national ISP. The Joint Venture Company will provide high-speed Internet connections to hotels, office buildings and apartment complexes, using a Chinese satellite with bi-directional KU bands to transmit data to these commercial users. It will be a first for China. Both parties are committed to providing the most sophisticated technology for the system infrastructure in addition to strong strategic alliances for its marketing program. China Internet Data Research expects the number of Chinese internet users to grow to more than 100 million by 2005, second only to the United States.
The Joint Venture will also bring in additional JV partners, well-known American and Chinese firms, to strengthen its unique market position. The national license will also allow the Joint Venture to engage in e-commerce activities and other Internet services. With the participation of Hartcourt, Innostar could expand this IP Phone Service to other cities and provinces in China. Projected revenue from the IP Phone Service alone would be $2.8 million in 2000. Net profit is estimated at $1.6 million.
MANAGEMENT OVERVIEW
DR. ALAN PHAN, 54, a graduate of Pennsylvania State University and Susses College of Technology, is the founder and has been Chairman and CEO of Hartcourt since 1990. From 1986 to 1990, he was the Executive Vice President for EM Kay Group, in charge of international projects and aircraft sales. Prior to 1986, for a period of 16 years, Alan owned and managed other business enterprises including UBI Business Brokers, Delta Savings Bank, KIP Pictures, Alpha Supermarkets and Alpha Real Estate Development.
MR. FRED LUKE, 50, a graduate of California State University, has been an entrepreneur for the last 27 years. He has been the Chairman and CEO of many public companies, including NuOasis, Hart Industries, Virtual Enterprises and DL&E. He is also Chairman and President of NuVen Advisors, a consulting firm for public companies. From 1970 to 1985, he was President of American Energy Corp., an oil and gas properties company and Eurasia, an equipment leasing company.
MR. JON LAWVER, 50, has 22 years of experience in banking and finance, first as Vice president of bank of America, then as head of his own consulting firm. he has been an officer and Director of many public companies including NuOasis and Eurasia.
SIMON SHI ZHANG is the Founder and CEO of UAC Stock Exchange Online, which was created in 1978. Previously an interpreter for the delegation of the Chinese Ministry of Posts and telecommunications to Europe, Mr. Zhang later served as a systems engineer, interpreter and group leader for China National Telecommunications Construction Corporation, and as a supervisor for French based Alcatel's installations in Heilongjiang and Hunan provinces. Mr. Zhang holds a BS in Communications & Engineering from Beijing University of Posts &
Communications, an MBA from the College of Economics of Tsinghua University and has been published in various Chinese technology journals and periodicals.
STEPHEN TANG 47, has been involved in the development and implementation of consumer technologies for nearly 20 years. He is the Founder of Financial Telecom, Ltd. and has been its CEO since 1985. Mr. Tang holds a degree in Business Management from Hong Kong Baptist University and an MBA from AIM-Asia Institute of Management in Manila. Stephen's contributions to Fin Tel include the development of new and innovative products and the creation of strategic alliances in China, Taiwan, Korea and the U.S. Prior to joining FinTel, Mr. Tang was engaged in investment banking activities with Hong Kong based Bancom and Asiavest Ltd. where he served as Deputy General Manager.
JACK WESTFIELD .47, is a graduate of Butler University and has over 20 years of experience providing financial services to indi-vidual and corporate clients. Jack was a Vice President in the investment departments with both Drexel Burnham Lambert and Smith Barney. In 1996, Jack became the Director of Corporate Finance for ETM Entertainment Network, and was responsible for securing a significant private placement which allowed the early stage company to undertake an ambi-tious business plan.
PRESS RELEASES
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
LINKS
hartcourt.com The Company Home page
innostar.com
Innostar - 35% Joint Venture Partner for Nationwide ISP and IP Phone service in China
zdii.com.
Ziff Davis HRCT Research Link
162stock.com
UAC OnLine Trading
HRCT NEWS****Signs contract with China Telecom Subs. and UAC gets second funding..
Tuesday November 2, 10:54 pm Eastern Time
Company Press Release
Hartcourt UAC JV Signs Contract With Beijing Telecom and Receives Government Funding
LOS ANGELES--(BUSINESS WIRE)--Nov. 2, 1999--The Hartcourt Companies Inc. (OTC:HRCT - news) today announced that its joint venture with UAC Online Stock Trading Inc. has signed a contract with Beijing Telecom, the wholly owned subsidiary of giant China Telecom.
According to the contract, Beijing Telecom will grant UAC five months free of charge for all the leased lines to be installed at brokerage offices. In addition, Beijing Telecom will also grant UAC 1,000 NUI numbers free of fixed monthly charges till the end of the year 2000. With these favorable conditions, Beijing Telecom wishes to work with UAC to quickly market 162 network in the Beijing data market. The contract will help UAC to rapidly expand its service in the Beijing area.
Hartcourt also announced today that UAC has received the second government funding from the Beijing Science & Technology Committee. ''UAC 162 network' has been listed as a torch project (No. 99337), which entitles it to receive free grants, reduced taxes and research and development support by China Science and Technology Commission.
UAC operates the first and only nationwide online trading network in China, connecting investors with their stock brokerage offices via Chinapac, the nationwide packet switched data network owned by China Telecom. UAC is the first and only operating agent of China Telecom's Chinapac system.
On Saturday, Hartcourt announced that it had received government approval on its joint venture with UAC Online Stock Trading Inc. of China. The Business License and Certificate of Foreign Investment were issued to the JV company. For recent news and other information, visit the Hartcourt Web site, www.hartcourt.com.
Certain statements in this news release 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 achievement expressed or implied by such forward-looking statements to differ materially from the forward-looking statements.
--------------------------------------------------------------------------------
Contact:
The Hartcourt Companies Inc., Los Angeles
Alan V. Phan, 562/426-9796
BSNS WIRE) Hartcourt CEO to Speak On the Future of Wireless ISP in China
Hartcourt CEO to Speak On the Future of Wireless ISP in China
Business & Technology Editors
LOS ANGELES--(BUSINESS WIRE)--Nov. 2, 1999--The Hartcourt
Companies, Inc. (OTC:HRCT) today announced that its Chairman and CEO
Dr. Alan V. Phan will be the main speaker at two receptions held in
Frankfurt, Germany and Vienna, Austria.
The subject will be the current situation of China Internet, and
the application of wireless technology to speed up the connections and
the ISP market.
The first seminar will be held at the Sheraton Congress Hotel in
Frankfurt on Tuesday, Nov. 8 at 7 p.m. and the other at the Hilton
Hotel in Vienna on Thursday, Nov. 11, also at 7 p.m. For reservations,
contact Frank Scheunert, Phone: 49-211-210-8970, Fax: 49-211-8600-111.
Last Monday, Hartcourt announced that it had signed a Joint
Venture Agreement with Innostar of Beijing to launch a national
wireless ISP and IP Phone services, using the bi-directional Ku bands
of a Chinese satellite for high-speed connectivity. Innostar has been
operating an IP Phone network in Beijing for the last 14 months.
On Saturday, Hartcourt announced that it had received government
approval on its Joint Venture with UAC Online Stock Trading Inc. of
China. The Business License and Certificate of Investment were issued
to the JV company. UAC operates the only E-trading in China,
connecting investors with brokerage offices via an intranet owned by
China Telecoms.
For recent news and other information, visit the Hartcourt Web
site: www.hartcourt.com.
Certain statements in this news release 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 that may cause the
actual results, performance or achievement expressed or implied by
such forward-looking statements to differ materially from the
forward-looking statements.
--30--ECQ/la* MW/la
CONTACT: The Hartcourt Companies, Inc., Los Angeles
Dr. Alan V. Phan, 562/426-9796
By: Funnicolo on RB
HRCT Profile: Hartcourt capitalized on its experience and connections in China to focus on the most promising area of the China market: the Internet. It has signed 3 Joint Venture agreements to create a national Internet Service Provider (Innostar), an online stock trading company (UAC), and a financial databank service company (FTL). With these 3 investments, Hartcourt is in the position to become the leader of the fast-growing China Internet industry. The ultimate goal of Hartcourt is to be the leading Internet company in Asia.
Company Website - hartcourt.com
Shares outstanding: 19.6 million Float: 11 million
HRCT Acquisitions:
Finnet - UAC/FTL joint ventures:
UAC Stock Exchange Online Co, Ltd.-(HRCT 50% ownership)
Press releases: biz.yahoo.com
biz.yahoo.com
Website: 162stock.com
Financial Telecom LTD (HRCT 58% ownership)
Press releases: biz.yahoo.com
biz.yahoo.com
Website: asianetvest.com.hk
ISP joint venture:
Innostar (HRCT 35% ownership)
Press release: biz.yahoo.com
Website: innostar.com
Interesting articles:
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