XIAMEN, China, Oct. 7, 2020 /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 Fujian Youth Hand in Hand Educational Technology Co., Ltd, a joint venture the Company formed with a third party ("Fujian Youth" or the "JV") and Guangzhou Tongsheng Education Technology Ltd. ("Tongsheng Education") have reached an agreement to provide Augmented Reality Immersive Classes ("ARIC") in Guangzhou over a three-year period.
The JV will collaborate with Tongsheng Education to launch ARIC aiming in a total of 320 preschools (with the goal of 20 first year, 100 the second year and 200 the third year) in Guangzhou over a course of three years and begin Blue Hat's strategic expansion in the Guangdong-Hong Kong-Macao Greater Bay Area (the "Greater Bay Area"). Blue Hat previously delivered ARIC course demonstrations and teaching experiments in eight preschools in Guangzhou, with a favorable reaction by teachers and students for a proactive interaction between entertaining and teaching.
At present, the Greater Bay Area in China is deeply implementing the innovation-driven development strategy, and Blue Hat is working to build market share in the region. The Company expects to benefit from the area's further development of educational informatization and the construction of a national informatization of a teaching experimental zone, and is driving an enhanced marketing campaign of Blue Hat's ARIC products.
Based on a three-year agency distribution agreement, the JV and Tongsheng Education have reached three flexible market cooperation and sharing models that incorporates the following unit economics for different schools:
(1) A monthly course fee of RMB4,000 (about USD 580) will be eared by Fujian Youth; or
(2) A basic service fee of RMB2,000 (about USD 295) per month and an additional tuition fee RMB200 (about USD 30) per month for class hours to be shared equally between Fujian Youth and Tongsheng Education; or
(3) A deposit of RMB10,000 (about USD 1,472) will be collected and escrowed by Fujian Youth, and a monthly tuition fee of RMB200 (about USD 29.50) will be shared equally by Fujian Youth and Tongsheng Education.
Management Comments
Mr. Xiaodong Chen, Blue Hat's Chief Executive Officer, noted, "This agreement allows us to further strengthen our market presence in the education sector, which along with augmented reality toys and games, are the three main pillars of Blue Hat's business model. Our ARIC products have been well received since they were introduced to the market. At present, we have actively promoted them in Guangxi, Guangdong and other provinces and continue to build market share and expand our markets geographically. This cooperation provides a solid foundation for continued marketing efforts in the Greater Bay area. With the continued development of education informatization in the Greater Bay Area and the growing demand for innovative teaching, we are confident to complete the goal of delivering ARIC services 320 Guangzhou preschools in three years."
Mr. Chen continued, "We are continuing to seek further collaborative measures to maximize the benefits of the Tongsheng Education relationship. We expect that Blue Hat will not only work closely with Tongsheng Education, but also actively build an educational alliance around teacher resources, continuously optimizing system technology, curriculum content and expression forms, and combining different teaching needs in Guangzhou and the Greater Bay Area."
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 https://ir.bluehatgroup.com/investor-relations. 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.
Contacts:
Lexie Zhang
Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net
Investor Relations:
The Equity Group Inc. In China
Adam Prior, Senior Vice President Lucy Ma, Associate
(212) 836-9606 +86 10 5661 7012
aprior@equityny.com lma@equityny.com
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