XIAMEN, China, Sept. 16, 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 that its subsidiary, Xunpusen (Xun Pu Sen) Technology Co. , Ltd. ("Xun Pu Sen"), generated approximately RMB 10 million (approximately USD $1.5 million) in revenue in the first month of its operation.
Background on the Transaction: Shift to Direct Mobile Marketing Techniques
In previous years, Blue Hat had focused on delivering its augmented reality (AR) interactive games and toys through traditional "brick and mortar" and e-commerce sales channels. In an effort to seek additional means of engaging with potential customers, the Company utilized its recently acquired subsidiary Xun Pu Sen to implement a sales strategy by leveraging their strength in enterprise software solutions and mobile / SMS sales to promote products directly through customers via mobile and desktop. Xun Pu Sen has maintained a cooperation with China's top three telecom operators, and is an expert in message marketing and integrated telecom solutions.
Since the deployment of these measures and integration of Xun Pu Sen's team in late July 2020, the Company has begun to report considerable sales growth of Blue Hat interactive game products. In addition, Blue Hat benefits from Xun Pu Sen's agreements to promote and ultimately sell multiple products from other companies. Blue Hat expects to expand the implementation of this strategy to include existing clientele and past customers as it brings new products or software to market. Based upon initial reports, the Company believes that Xun Pu Sen's contribution to revenue could be potentially in excess of RMB100 Million (USD $15.6 million) on an annualized basis.
Management Comments
Mr. Xiaodong Chen, Blue Hat's Chief Executive Officer, stated, "We feel that with the emergence of 5G technology and the continued usage of phone applications in consumers buying habits, there was a distinct opportunity to enhance Blue Hat's sales with the integration of Xun Pu Sen. We began to invest in our subsidiary and started to implement a sales program that could help to develop new sales channels in a continuing COVID-19 environment. Subsequently, we immediately saw a tangible benefit through increased sales, in addition to higher visibility of our best-known products through traditional channels. While we are very excited about the initial results, we are more encouraged by the possibility for greater sales growth as we expand our product mix of interactive multi-media and mobile games and products as well as building a platform for online sales overall."
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.
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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