Letter from CEO - 12/3/00
Dear Friends:
I have received over 120 Emails complaining about the
recent "E" problem of HRCT symbol; as well as an
earful of all the curses and blames. Since I could not
respond individually, please consider this letter as
my personal reply to your concern.
First, I sincerely apologize for any disappointment or
anger over the share price last week. As the captain
of the HRCT ship, I take full responsibility for what
happened.
However, I strongly believe that the cause of the
mishap was not originated by any fault of Hartcourt
management. Our CFO sent the complete 10Q3 filing
(text and figures) to KPMG for review as early as
November 2nd. The auditors had 13 days which are
normally more than necessary to do their job. However,
they were worse than most of the Third World country
bureaucrats. They sat and they sat until the last
minutes, before sending us a list of 200 documents
asking us to provide. It was a total disaster; and
only through our hard-work and determination to
rectify the situation, that we were late only a few
hours. It was like getting a flat tire when you are
going to a wedding. An unplanned accident. But over
all, I do not think any other management team would
fare better in the same situation.
Secondly, while the sliding of the share price for a
few days does cause plenty of concern for our
shareholders, partners and potential merger
candidates; it should not have any long-term effect on
our execution of the business strategy. And I always
believe that the successful completion of the coming
IPO’s and mergers are more important for you than the
words of a few paid bashers and angry traders. There
is no reason for me to believe that we could not
achieve what we have set our mind upon, no matter what
terrible shape the stock market is in, no matter how
many accidents and challenges we must face in the
daily struggles. We will prevail.
I just got back from Europe and ready to return to
China next week. The potential transactions there, as
well as in Asia, will turn the momentum back in our
favor. I am more optimistic than ever on our future.
There will be more problems and difficulties in the
days ahead. But we will overcome them, one by one,
and become stronger and better each day. For those
longs who keep the faith, I would like to say
“thank-you” and “have no fear. Our finest hours are
coming. Very soon.”
Best,
Alan |
