Letter from Dr. Alan Phan:
July 18th, 2000
Dear Shareholders:
As our operations in China are picking up speed at a rather furious pace, unfortunately I do not have much time to communicate with you as frequently. However, to help keep you up to date with our business growth, we have issued 20 press releases over the last 3 months detailing our
tremendous progress to measure our achievements. How many other companies are performing at this level? Yet, we received hundreds of calls and emails each day, feeling there is a lack of progress.
Of course, some are concerned about the current share price. I am too, but I believe the only way to increase shareholder value is to properly take care of the company's growth, development and operating results. As I promised in Long Beach, Hartcourt will be ten times bigger by the
end of 2000.
Our strategic plan over the next three years is to complete a series of IPO's or spin-offs focused on 3 main divisions: the SinoBull E-Finance Platform and wireless financial services, Broadband ISP and Internet infrastructure, and the Financial Transactions Group (online
banking, insurance, equipment leasing, mortgages, credit, bill payment, etc.). If you manage to hang on until then, I guarantee that you won't be disappointed with the share price or the return of your investment. If you want to exit within the next 3 months, then I don't know how to predict.
At present, we have achieved a tremendous marketing position for the Sinobull Group. Following the successful hard launch, SinoBull.com has climbed to 3 Million page views per market day with our content on some of China's premier financial publications. The strategic partnerships
with China Telecom, Yahoo! China, China Cable Network, Shanghai Nokia, People's Daily, Securities News, etc. have built SinoBull into a formidable contender in the post-WTO world.
Furthermore, the acquisition of the ChinaOnLine (COL) ISP network will have a much bigger impact on Hartcourt's future than any previous acquisitions.
COL has 80 local content portals, 105 offices (ie. licensees), 240,000 subscribers (40,000 business accounts), US $20 Million revenue in 1999, and 2000 employees, all of which will form a great backbone to deploy our broadband wireless network. A few more key acquisitions are in
the works, which will complete the big picture. It's been astonishing what we could do in one year on a shoestring budget.
However, from now until our final victory, we shall face many challenges and obstacles. We may not win every battle, but we move on towards winning the war. I know there will be plenty of blood, sweat and tears to be shed. But I also know that our perseverance with get us to our destination. As a soldier, I pledge to put my life and everything else on the line to ensure
that the mission will be accomplished. I will not fail your trust.
However, in business as in war, you cannot be so predictable that a small change in the battle environment could wipe you out. You must continually adjust your strategies to match the opposing forces. You march forward always, you might change direction sometimes, but the mission objectives are never compromised. Hartcourt is going through this strategic phase, with
some major developments to be announced soon. There will be some pleasant surprises which we are trying to complete. Our competitors and adversaries will then look at Hartcourt in a much different light and respect. I cannot tell you much about these changes and I ask you to be patient. It will involve major restructuring of assets and personnel. But in the end, you will see a much bigger Hartcourt and a much stronger business model. We don't build a business empire the same way we manufacture cookies. We create it one precise stroke at a time, like Michelangelo's masterpiece on the Sistine chapel at the Vatican.
As for the NASDAQ NMS application, we have been informed by our attorney that the resolution to our application should begin on July 27, with an answer on or within a few days after. Since that is only 9 days away, let's wait for the result. Any comment or speculation won't make any
difference. If we are approved, I do not expect much influence directly to the company, because the coming restructuring is of far more direct importance. If not approved, the same would also be true. If that turns out to be the case, we are already prepared and could immediately re-apply, we could go to the NASDAQ Small cap, Amex, Toronto, NYSE, Pacific, Hong Kong, London whatever. Therefore, it is just a matter of "when", not "if".
NASDAQ listing is like membership in a country club, it makes you look more respectable, but it won't put food on the table. With or without it, in a year's time, people across China could be rapidly trading stocks over their mobile phones through the SinoBull platform, while watching their favorite analysts on our Financial Channel. A wise man once said, "The only true respect is self-respect."
The overall picture is that we have made steady progress. From 5 employees a year ago, we shall have over 500 employees in August. From a business plan a year ago, we shall now have at least 9 subsidiaries with thriving business by year's end. From 400 shareholders, we have mushroomed
into an army of 12,000. What a difference a year makes. You will be able to say the same thing this time next year. This is the Hartcourt we love and respect. No matter how hard they try, no one can change this reality.
Do you remember what Abraham Lincoln once said, "I do the best I know how, the very best I can; and I mean to keep on doing it to the end. If the end brings me out all right, what is said against me will not amount to anything. If the ends brings me out all wrong, ten angels swearing I was right would make no difference." In three more years, you will have the
opportunity to sing the victory song with me; or to organize a lynching party. I will take full responsibility for all results.
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.
|
Thread abonnieren
