SHANGHAI, China, June 13 /Xinhua-PRNewswire/ -- The Hartcourt Companies, Inc. (OTC Bulletin Board: HRCT, Frankfurt: 900009) ("Hartcourt") today announced that it has signed a definitive agreement to purchase 60% of outstanding securities of Beijing Yanyuan Rapido Education Company ("Beijing Yanyuan") for approximately RMB 25 Million (US$3.4 Million), payable in 69 Million restricted common shares of Hartcourt.
Under the terms of the definitive agreement executed between Beijing Yanyuan and Hartcourt, Beijing Yanyuan committed that its net profit would exceed RMB6 million (US$827,000) for the year 2008, RMB10 million (US$1.379 million) for the year 2009, and RMB14 million (US$1.931 million) for the year 2010. The restricted common shares issued for the Acquisition will be released to previous shareholders of Beijing Yanyuan in three installments based on the profit realized over a three-year period.
Founded by the Science Park of Peking University, Beijing Yanyuan is a well-known training institution. Beijing Yanyuan offers a program to help students rapidly improve their school grades. The program was invented by Mr Zhenyu Hu, president of Beijing Yanyuan, and has been proven to be effective. Beijing Yanyuan is the sole general agent appointed by the Science Park of Peking University to promote and market this training program. Peking University (PKU) was the first national university in Chinese modern history, with a high reputation in and outside China. Owing to the background of Peking University, abundant teaching resources, management team consisting of education experts and professors, Beijing Yanyuan has rapidly built its brand and increased its market share to become a leading training institution nationwide.
Mr Zhenyu Hu, shareholder and president of Beijing Yanyuan, is an editor of the magazine "Successful Way," and a director of the Science Park of Peking University. He has appeared in numerous newspaper articles and television programs. He has published numerous articles and books on education.
More details on Beijing Yanyuan and Mr. Zhenyu Hu can be obtained from the following Web sites:
www.pkusp.com/hu/zjzy.htm
www.pkusp.com/gftp/index.asp
www.yykc.net
Education and training is one of the fastest-growing areas in China. China has one of the largest education systems in the world in terms of number of students. The Chinese highly value education and seem willing to spend money on programs that would improve students' academic performance.
Mr. Victor Zhou, CEO of Hartcourt, states, "with Beijing Yanyuan's relationship with Peking University, experience in education and recognizable brand, this acquisition is a pivotal milestone of Hartcourt in implementing its strategy to enter into and focus on education/training market in China. After the acquisition, Beijing Yanyuan will become a platform for Hartcourt to further acquire more schools."
Mr. Zhenyu Hu, President of Beijing Yanyuan, comments, "For the last several years, we have been building our brand name, operation and market share, waiting for the right timing to break out nationwide. We think the leadership of Hartcourt will help us do precisely that. We believe the synergies derived from the combination of Beijing Yanyuan and Hartcourt will provide us opportunities for additional growth in the future."
About Hartcourt
Hartcourt's achievements and operations can be found on its web site: http://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 more information, please contact:
Ms Mary Qi
Tel: +86-21-5111-3716
Fax: +86-21-5111-3719
Email: ir@hartcourt.com