Blue Hat Announces Financial Results for Second Quarter and First Half of 2021, Highlighted by 269.6% Increase in Revenues to $17.9 Million for First Half 2021
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) reported significant financial growth for Q2 and H1 2021. Q2 revenues surged to US $8.0 million, up 206.4% year-over-year, driven by mobile games and communication services. Gross profit reached US $4.7 million, a 138.4% increase, while income from operations rose by 159.0% to US $1.9 million. Net income fell to US $0.2 million due to increased expenses. H1 revenues reached US $17.9 million, with gross profit at US $8.8 million. The company had US $11.5 million in cash as of June 30, 2021.
- Q2 2021 revenue increased by 206.4% to US $8.0 million.
- H1 2021 total revenue reached US $17.9 million, a 269.6% increase.
- Gross profit for Q2 2021 rose by 138.4% to US $4.7 million.
- Income from operations in Q2 2021 grew by 159.0% to US $1.9 million.
- Acquisition of Xunpusen contributed US $7.1 million in revenue for H1 2021.
- Net income in Q2 2021 decreased to US $0.2 million from US $0.5 million in the prior year.
- Increased operating expenses to US $2.8 million in Q2 2021, up from US $1.2 million.
- Gross margin decreased to 58.9% in Q2 2021 from 75.7% in the previous year.
XIAMEN, China, Oct. 25, 2021 /PRNewswire/ -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ: BHAT), a leading communication services and Internet Data Center ("IDC") business provider and developer, and an operator of mobile games and augmented reality ("AR") education curricula and products in China, today announced its unaudited financial results for the three months ended June 30, 2021 ("Second Quarter 2021") and six months ended June 30, 2021 ("First Half 2021").
Second Quarter 2021 and First Half 2021 Financial Highlights
- Second Quarter 2021 total revenues of US
$8.0 million , compared to US$2.6 million in the prior-year period, driven by increased sales across all major business lines, particularly mobile games and communication services. - Second Quarter 2021 gross profit of US
$4.7 million , up138.4% from US$2.0 million in the prior-year period - Second Quarter 2021 income from operations of US
$1.9 million , up159.0% from US$0.7 million in the prior-year period - Second Quarter 2021 net income of US
$0.2 million , compared to US$0.5 million in the prior-year period, as a result of increased expenses related to bad debt provision. - First Half 2021 total revenues of US
$17.9 million , compared to US$4.9 million in the prior-year period - First Half 2021 gross profit of US
$8.8 million , up140.9% from US$3.7 million in the prior-year period - First Half 2021 income from operations of US
$3.6 million , up124.9% from US$1.6 million in the prior-year period - First Half 2021 net income of US
$1.4 million , up9.6% from US$1.3 million in the prior-year period - US
$11.5 million in cash and cash equivalents at June 30, 2021
Management Commentary
Mr. Xiaodong Chen, CEO of Blue Hat, stated, "We continued to see strong growth across all our lines of business in Second Quarter 2021, which resulted in strong top line growth during the Second Quarter 2021 and First Half 2021. We more than tripled growth on the top line in First Half 2021, achieving US
Recent Operating Highlights
- In October 2021, Blue Hat announced that Xunpusen signed an agreement to provide SMS channel services for JD Cloud. Xunpusen has been engaged as the channel and port provider for JD Cloud's SMS channels services. The agreement is in effect through May 25, 2022.
Second Quarter 2021 Results
Total revenues were US
Revenues from sales of interactive toys (animation series) were US
Revenues from sales of interactive toys (game series) were US
Revenues from mobile games increased to US
Revenues from AR education, previously included under interactive toys (animation series), were US
Revenues from communication services were US
Gross profit increased
Total operating expenses increased to US
Income from operations increased
Net income was US
Basic and diluted earnings per share were US
First Half 2021 Results
Total revenues were US
Revenues from sales of interactive toys (animation series) were US
Revenues from sales of interactive toys (game series) were US
Revenues from mobile games were US
Revenues from AR education, previously included under interactive toys (animation series), were US
Revenues from communication services were US
Gross profit increased
- Interactive toys (animation series):
10.7% , or US$0.05 million - Interactive toys (game series):
57.6% , or US$2.5 million - Mobile games:
83.5% , or US$4.9 million - AR education:
93.8% , or US$0.2 million - Communication services:
16.5% , or US$1.2 million
Total gross margin was
Total operating expenses increased to US
Income from operations increased
Net income increased
Basic and diluted earnings per share were US
Balance Sheet Highlights
As of June 30, 2021, Blue Hat had cash and cash equivalents of US
During the Second Quarter 2021, the Company completed a registered direct offering with two institutional investors for the purchase and sale of 6.29 million ordinary shares at a price of
About Blue Hat
Blue Hat is a leading communication services and IDC business provider as well as a producer, developer and operator of AR interactive entertainment games, toys and educational materials in China. 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 its forward-looking statements.
Contacts:
Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net
Investor Relations:
The Equity Group Inc. | In China | |||
Carolyne Sohn, Vice President | Lucy Ma, Associate | |||
(415) 568-2255 | +86 10 5661 7012 | |||
BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES | |||
For the Three Months Ended June 30, | |||
2021 | 2020 | ||
Revenues | $ 8,001,157 | $ 2,611,204 | |
Cost of revenue | 3,289,079 | 634,473 | |
Gross profit | 4,712,078 | 1,976,731 | |
Operating expenses: | |||
Selling | 1,068,702 | 117,549 | |
General and administrative | 812,223 | 1,057,108 | |
Research and development | 933,106 | 69,128 | |
Total operating expenses | 2,814,031 | 1,243,785 | |
Income from operations | 1,898,047 | 732,946 | |
Other income (expense) | |||
Interest income | 134,691 | 107,507 | |
Interest expense | (97,786) | (51,053) | |
Other finance expenses | (40,693) | 47,581 | |
Other (expense) income, net | (1,113,075) | 2,328 | |
Total other (expense) income, net | (1,116,863) | 106,363 | |
Income before income taxes | 781,184 | 839,309 | |
Provision for income taxes | 630,566 | 338,919 | |
Net income | 150,618 | 500,390 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 1,676,959 | 25,968 | |
Comprehensive income | $ 1,827,577 | $ 526,358 | |
Less: Comprehensive income attributable to non-controlling | 221,402 | - | |
Comprehensive income attributable to Blue Hat Interactive | 1,606,175 | 526,358 | |
Weighted average number of ordinary shares | |||
Basic | 47,384,286 | 35,141,114 | |
Diluted | 52,628,146 | 35,141,114 | |
Earnings per share | |||
Basic | |||
Diluted |
BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES | |||
For the Six Months Ended June 30, | |||
2021 | 2020 | ||
Revenues | $ 17,942,564 | $ 4,854,862 | |
Cost of revenue | 9,148,926 | 1,203,962 | |
Gross profit | 8,793,638 | 3,650,900 | |
Operating expenses: | |||
Selling | 1,648,748 | 290,699 | |
General and administrative | 2,128,000 | 1,596,818 | |
Research and development | 1,377,317 | 145,179 | |
Total operating expenses | 5,154,065 | 2,032,696 | |
Income from operations | 3,639,573 | 1,618,204 | |
Other income (expense) | |||
Interest income | 134,885 | 107,884 | |
Interest expense | (235,401) | (123,660) | |
Other finance expenses | (81,663) | (10,168) | |
Other (expense) income, net | (1,082,566) | 20,862 | |
Total other (expense) income, net | (1,264,745) | (5,082) | |
Income before income taxes | 2,374,828 | 1,613,122 | |
Provision for income taxes | 993,712 | 353,359 | |
Net income | 1,381,116 | 1,259,763 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 1,310,783 | (579,392) | |
Comprehensive income | $ 2,691,899 | $ 680,371 | |
Less: Comprehensive income attributable to non-controlling | 748,596 | ||
Comprehensive income attributable to Blue Hat Interactive | 1,943,303 | 680,371 | |
Weighted average number of ordinary shares | |||
Basic | 47,384,286 | 35,141,114 | |
Diluted | 52,628,146 | 35,141,114 | |
Earnings per share | |||
Basic | |||
Diluted |
BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY AND SUBSIDIARIES | ||||
June 30, | December 31, | |||
ASSETS | 2021 | 2020 | ||
Current assets: | ||||
Cash and cash equivalents | $ 11,503,578 | $ 15,800,563 | ||
Restricted cash | ||||
Short-term investments | ||||
Accounts receivable, net | 31,165,800 | 16,594,533 | ||
Accounts receivable - related party | 1,906,101 | |||
Other receivables, net | 14,733,377 | 14,350,223 | ||
Other receivables - related party | 33,512 | |||
Inventories | 200,279 | 117,075 | ||
Prepayments, net | 2,403,234 | 1,917,780 | ||
Total current assets | 60,039,780 | 50,686,275 | ||
Property and equipment, net | 4,261,011 | 4,258,121 | ||
Other assets: | ||||
Prepayments | 12,544,199 | 4,164,274 | ||
Operating lease, right-of-use asset | 278,528 | 290,410 | ||
Intangible assets, net | 25,849,682 | 14,252,575 | ||
Long-term investments | 1,857,556 | 1,914,668 | ||
Deferred tax assets | 256,460 | 119,127 | ||
Goodwill accounting | 787,047 | |||
Total other assets | 41,573,472 | 20,741,054 | ||
Total assets | $ 105,874,263 | $ 75,685,450 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Short-term loans - banks | $ 1,360,495 | $ 5,129,295 | ||
Current maturities of long-term loans - third party | 14,117 | |||
Accounts payable | 3,571,783 | 935,588 | ||
Convertible bonds payable | 57,336 | 739,189 | ||
Other payables and accrued liabilities | 11,179,429 | 1,846,917 | ||
Other payables - related party | 211,818 | 25,837 | ||
Operating lease liabilities - current | 229,521 | 300,468 | ||
Customer deposits | 789,117 | 941,877 | ||
Accrual interest payable | ||||
Taxes payable | 6,786,743 | 6,802,454 | ||
Total current liabilities | 24,186,242 | 16,735,742 | ||
Other liabilities: | ||||
Operating lease liability | 59,965 | |||
Long-term loans - third party | ||||
Total other liabilities | 59,965 | |||
Total liabilities | 24,246,207 | 16,735,742 | ||
COMMITMENTS AND CONTINGENCIES | ||||
Shareholders' equity | ||||
Ordinary shares, | 53,417 | 38,554 | ||
Additional paid-in capital | 35,693,329 | 23,466,482 | ||
Statutory reserves | 2,204,174 | 2,204,174 | ||
Retained earnings | 32,019,919 | 31,387,398 | ||
Accumulated other comprehensive income (loss) | 3,052,478 | 1,741,696 | ||
Total Blue Hat Interactive Entertainment Technology | 73,023,317 | 58,838,304 | ||
Non-controlling interests | 8,604,739 | 111,404 | ||
Total equity | 81,628,056 | 58,949,708 | ||
Total liabilities and shareholders' equity | $ 105,874,263 | $ 75,685,450 | ||
SOURCE Blue Hat Interactive Entertainment Technology
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