Hartcourt Acquires GuoWei Group, a Major PC Retailer and Distributor in Shanghai
Thursday May 8, 3:26 am ET
LOS ANGELES, May 8 /PRNewswire-FirstCall/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009), www.hartcourt.com , today announced that it has signed a definitive agreement to purchase 45 percent of Shanghai GuoWei Science and Technology Ltd., www.guowei.com.cn , a major PC retailer and distributor based in Shanghai, China. Furthermore, Hartcourt has obtained a voting proxy for an additional 10 percent of outstanding shares of GuoWei to effectively control the Board of Directors.
ADVERTISEMENT
The purchase price for the 45 percent acquisition is RMB35.85 Million (US$4.35Mil) payable in 10,863,792 restricted common shares of Hartcourt at US$0.40 per share.
In 2002, GuoWei recorded sale revenue of RMB310 Million (US$37.6 Million). It was one of the top PC retailers in Shanghai, specializing in DIY (do-it- yourself) PC assembly and online PC sales.
GuoWei, founded in 1996, owns and operates 13 stores in Shanghai area and surrounding areas, completed with service centers and warehouse distribution. The stores provide customers with latest computer hardware, software, technical services and other digital products. It is also the leading online PC retailer in Shanghai for computer products at www.12diy.com .
GuoWei's business model is very similar to that of HuaQing and NewHuaSun, two other Hartcourt subsidiaries. Recently acquired by Hartcourt, HuaQing and NewHuaSun recorded a combined US$120 Million in sales and US$2.2 Million in net profit in 2002. Adding GuoWei, the three subsidiaries should give Hartcourt over US$165 Million in sales for the next 12 months. In Q1 of 2003, GuoWei recorded RMB99.5Mil (US$12Mil) in revenue.
China has experienced explosive growth in PC sales for the last 10 years from 670,000 PC sold in 1994 to 7,260,000 in 2001. IDC predicts China's PC sales will grow at 18-22% for the next 5 year, with sales reaching 19,800,000 PC in 2006 (global PC sales is 131,800,000 in 2002 vs. China's 9,280,000). Experts believe the huge market potential will come from the low PC penetration in home uses (5% in China compared to 49% in the US), as well as demand from technology upgrades and adoption of information technology by SMEs (small medium enterprises) and government sectors.
More details on GuoWei and the PC market in China could be obtained from Hartcourt Website, www.hartcourt.com or GuoWei website, www.guowei.com.cn .
Mr. Zhou Jian, Chairman and President of GuoWei, comments, "We are pleased to join HuaQing and NewHuaSun to create a major PC marketing group in China under Hartcourt's leadership. Undoubtedly, there are more companies out there anxious to join us. Our combined purchasing power and marketing budget will improve our profit margin. The acquisition strategy of Hartcourt will enable us to expand more aggressively. Bringing China's future growth into the present is Hartcourt's mission. We only just begin."
About Hartcourt
The Hartcourt Companies, Inc. is an investment holding and developing company specializing in the acquisition and development of private companies within high-growth industries in China. Hartcourt's business strategy is to add substantial value in terms of financial restructuring and corporate governance to enable these subsidiaries goes public via IPO or reverse merger. Detailed information on Hartcourt can be obtained via the company's Web site: www.hartcourt.com .
Forward-looking statements
The statements made in this press release, which are not historical facts, contain certain forward- looking statements concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward- looking statement.
For further information, please contact: Mr. Richard Yan, 8621 5213 0673, or fax, 8621 5213 0664, richard.yan@hartcourt.com, for The Hartcourt Companies, Inc.
Source: The Hartcourt Companies, Inc.
Gruß
Trader |
Thread abonnieren
