Blue Hat Announces Further Growth of Xunpusen Following Company's Strategic Acquisition in 2020

XIAMEN, China, Jan. 4, 2021 /PRNewswire/ -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ: BHAT), a leading producer, developer and operator of augmented reality ("AR") interactive entertainment games, toys and educational materials in China, today announced that the Company's operating subsidiary, Xunpusen Technology Co., Ltd. ("Xunpusen"), generated approximately RMB30 million (approximately USD $4.5 million) in revenue in the first four months of operation.

Since its acquisition earlier this year, the Company has continued to develop and utilize Xunpusen's mobile marketing and hosting expertise to both support and grow Blue Hat's traditional mobile and gaming business while seeking new channels to expand the Company's customer base and leverage relationships. 

Xunpusen recently signed a cooperation agreement with China Mobile Communications Group Guangdong Co., Ltd. ("China Mobile") for a series of telecom value-added service and Internet Data Center ("IDC") contracts. IDC is a place to host a group of hosting enterprises, merchants, or web servers, an infrastructure on which models of e-commerce operate securely, and a platform to support businesses and their business alliances in implementing value chain management for their distributors, suppliers and customers.

Specifically, these IDC agreements can enable larger companies to promote and sell products using Xunpusen's expertise in message marketing and integrated solutions. Following the agreement with China Mobile, both companies have worked to secure agreements from larger multi-national companies in addition to Blue Hat's existing product portfolio.

The Company believes that Xunpusen's contribution to revenue could potentially be in excess of RMB100 Million (USD $15.6 million) on an annualized basis.

Mr. Xiaodong Chen, CEO of Blue Hat, stated, "We are very pleased with the development of Xunpusen. Initially, our goal was to utilize direct marketing and sales techniques to further our relationships with larger companies and increase sales of Blue Hat's core product portfolio. The deployment of 5G technology, coupled with the acceleration of mobile utilization throughout 2020 has also created opportunities in the internet data center business. We expect that the recent agreement with China Mobile will lead to further agreements due to the surge in data volume and the strong downstream demand. We will keep investors closely apprised of our progress."

About Blue Hat

Blue Hat Interactive Entertainment Technology is a producer, developer and operator of AR interactive entertainment games and toys in China, including interactive educational materials, mobile games, and toys with mobile game features. The Company's interactive entertainment platform creates unique user experiences by connecting physical items to mobile devices, which creates a rich visual and interactive environment for users through the integration of real objects and virtual scenery. Distinguished by its own proprietary technology, Blue Hat aims to create an engaging, interactive and immersive community for its users. For more information, please visit the Company's investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements 

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.

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