BEIJING, March 12, 2020 /PRNewswire/ -- Huitao Technology Co., Ltd. (Nasdaq CM: HHT) (the "Company", "we" or "HHT"), a company engaged in production of advanced ready-mix concrete materials and education service, announced today that its wholly owned subsidiary, CACM Group NY, Inc. ("CACM"), and Baydolphin, Inc. ("Baydolphin") established a joint venture company, BayTao ("JV"), a limited liability company specializing in the after-school tutoring program for students from kindergarten to the eighth grade in New York. The JV will leverage Baydolphin's expertise in academic and art education for the youth in conjunction with CACM's business management skills and access to capital to create an innovative learning platform in New York.
Under the terms of the joint venture agreement for the JV, Baydolphin shall be responsible for operating and managing the JV; CACM shall contribute necessary capital to fund the JV's operation and set up platforms to offer online courses. The net profits and net loss of the JV shall be distributed 80% and 20% to CACM and Baydolphin, respectively.
HHT's recent acquisition of Sunway Kids International Education Group Ltd. ("Sunway Kids") marks a key step forward as the Company gradually transitions its business to be an educational technology service provider. Following the integration of the combined businesses, the JV will be able to leverage the know-how and experience of Sunway Kids to strengthen its competitive proposition in the market. Sunway Kids' intelligent campus system is among the most advanced Software-as-a-Service (SaaS) platform for school management to enhance operational and financial efficiency. Its AI based growth tracking analysis system enables the school to personalize each student's education plan based on interests, characteristics, and learning progress, which will be a valuable asset to Baydolphin's traditional education model. Meanwhile, Baydolphin has easy access to American teachers and tutors which Sunway Kids will be able to tap to further expand its online English education services in China. The combination of these two businesses with complementary technology and industry strengths will be more sustainable and generate valuable synergy for HHT.
"This is another milestone of our company to grow its presence in the education service space. We are delighted to partner with Baydolphin to establish a joint venture to focus on providing the quality education support that students and parents are seeking. We are excited to re-position the Company to be a high-tech education service provider serving customers in both China and U.S.," said Mr. Yang (Sean) Liu, the Chief Executive Officer of HHT.
Ms. Yicen Lin, General Manager of Baydolphin commented, "Baydolphin is proud to join forces with CACM and partner with a NASDAQ listed company. Amid rising after-school educational program demands in Asian American communities in New York, high-quality after-school programs that can help students achieve academic success and improve socialization skills are highly sought after. With Baydolphins' teaching expertise and students resources, coupled with CACM's capital capability and technology support, we are confident that the JV will accelerate the development of after-school programs and expand our market into more communities."
About Huitao Technology Co., Ltd.
The Company is a holding company whose primary business operations are conducted through its wholly-owned subsidiaries Xin Ao Construction Materials, Inc., Beijing Ao Hang Construction Materials Technology Co., Ltd., Sunway Kids International Education Group Ltd., Brave Millennium Limited, Chengdu Hengshanghui Intelligent Technology Co., Ltd. and our variable interest entities, Beijing Xin Ao Concrete Group and Chengdu Hengshanghui Education Consulting Co., Ltd. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments, primarily focused on engineering, producing, servicing, delivering and pumping a comprehensive range of advanced ready-mix concrete materials for highly technical, large scale, and environmentally-friendly construction projects. Through its newly acquired subsidiaries, the Company also engages in the early childhood education service business, providing a well-structured system to day cares and preschools in China, including AI and robotic technologies, intellectual campus administration software as a service system (SAAS) and personalized online education courses. For more information, please visit http://www.china-acm.com.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and HHT's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on HHT's operations, the demand for the HHT's products and services, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the other public filings with the Securities and Exchange Commission (the "SEC") by HHT.
Additional information concerning these and other factors that may impact our expectations and projections will be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year ended June 30, 2019. HHT's SEC filings are available publicly on the SEC's website at www.sec.gov. HHT disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
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