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.”