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Blue Hat Announces Financial Results for the Fiscal Year 2023, of which the Revenue Increased by 33 Times

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Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) announced its audited financial results for the Fiscal Year 2023, with a revenue increase of 33 times compared to the previous year. The company achieved a revenue of $73.68 million in 2023, primarily driven by the robust expansion of its commodity trading business, particularly in jewelry and gold trading. Despite the significant revenue growth, Blue Hat reported a net loss of $21.72 million for Fiscal Year 2023, attributed to bad debts and asset impairment from divested businesses. However, the new business line of commodity trading contributed a profit of nearly $1.2 million. CEO Mr. Chen Xiaodong highlighted the company's strategic transition and plans for further expansion in commodity trading, online gold derivatives trading, and embracing artificial intelligence.

Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) ha annunciato i risultati finanziari auditati per l'anno fiscale 2023, registrando un incremento del fatturato di 33 volte rispetto all'anno precedente. L'azienda ha realizzato un fatturato di 73,68 milioni di dollari nel 2023, principalmente grazie alla forte espansione della sua attività di commercio di beni, in particolare nel settore della gioielleria e del commercio dell'oro. Nonostante la notevole crescita del fatturato, Blue Hat ha riportato una perdita netta di 21,72 milioni di dollari per l'anno fiscale 2023, causata da crediti inesigibili e svalutazione di attivi derivanti da attività dismesse. Tuttavia, la nuova linea di business del commercio di beni ha contribuito con un profitto di quasi 1,2 milioni di dollari. Il CEO, Sig. Chen Xiaodong, ha sottolineato la transizione strategica dell'azienda e i piani per ulteriori espansioni nel commercio di beni, nel trading online di derivati sull'oro e nell'adozione dell'intelligenza artificiale.
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) ha anunciado sus resultados financieros auditados para el año fiscal 2023, con un aumento de ingresos 33 veces superior al del año anterior. La compañía logró unos ingresos de $73.68 millones en 2023, impulsados principalmente por la robusta expansión de su negocio de comercio de mercancías, especialmente en la comercialización de joyas y oro. A pesar del significativo crecimiento de los ingresos, Blue Hat informó de una pérdida neta de $21.72 millones para el año fiscal 2023, atribuida a deudas incobrables y deterioro de activos de negocios desinvertidos. Sin embargo, la nueva línea de negocio de comercio de mercancías aportó un beneficio de casi $1.2 millones. El CEO, Sr. Chen Xiaodong, destacó la transición estratégica de la empresa y los planes para una mayor expansión en el comercio de mercancías, el comercio en línea de derivados del oro y la adopción de inteligencia artificial.
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT)는 2023 회계 연도의 감사된 재무 결과를 발표했으며, 전년 대비 매출이 33배 증가했습니다. 회사는 2023년에 주로 보석 및 금 거래 비즈니스의 강력한 확장으로 7,368만 달러의 매출을 달성했습니다. 매출이 크게 성장했음에도 불구하고 Blue Hat은 매각된 사업으로 인한 나쁜 채권과 자산 손상으로 인해 2023 회계 연도에 2,172만 달러의 순손실을 보고했습니다. 그러나 상품 거래의 새로운 사업 라인은 거의 120만 달러의 이익을 기여했습니다. CEO 첸 샤오동은 회사의 전략적 전환과 상품 거래 계획, 온라인 금 파생 상품 거래 및 인공 지능 도입에 대한 추가 확장 계획을 강조했습니다.
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) a annoncé ses résultats financiers audités pour l'exercice 2023, avec une augmentation du chiffre d'affaires 33 fois supérieure à celle de l'année précédente. L'entreprise a réalisé un chiffre d'affaires de 73,68 millions de dollars en 2023, principalement du fait de l'expansion robuste de son activité de commerce de marchandises, notamment dans le négoce de bijoux et d'or. Malgré cette importante croissance du chiffre d'affaires, Blue Hat a enregistré une perte nette de 21,72 millions de dollars pour l'exercice 2023, attribuée aux créances irrécouvrables et à la dépréciation des actifs provenant des activités cédées. Toutefois, la nouvelle ligne d'affaires de commerce de marchandises a contribué à un profit de près de 1,2 million de dollars. Le PDG, M. Chen Xiaodong, a souligné la transition stratégique de l'entreprise et ses plans pour une expansion supplémentaire dans le commerce des marchandises, le trading en ligne de dérivés sur l'or et l'adoption de l'intelligence artificielle.
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) hat seine geprüften Finanzergebnisse für das Geschäftsjahr 2023 bekannt gegeben, mit einem Umsatzanstieg um das 33-fache im Vergleich zum Vorjahr. Das Unternehmen erzielte 2023 einen Umsatz von 73,68 Millionen Dollar, vor allem durch das starke Wachstum seines Warenhandelsgeschäfts, insbesondere im Bereich Schmuck- und Goldhandel. Trotz des erheblichen Umsatzwachstums meldete Blue Hat für das Geschäftsjahr 2023 einen Nettoverlust von 21,72 Millionen Dollar, der auf uneinbringliche Forderungen und Wertminderungen von Vermögenswerten aus abgestoßenen Geschäftsbereichen zurückzuführen ist. Jedoch trug die neue Geschäftslinie des Warenhandels fast 1,2 Millionen Dollar Gewinn bei. CEO Herr Chen Xiaodong hob den strategischen Übergang des Unternehmens und Pläne für eine weitere Expansion im Warenhandel, im Online-Gold-Derivate-Handel und in der Nutzung künstlicher Intelligenz hervor.
Positive
  • Blue Hat Interactive Entertainment Technology (BHAT) reported a remarkable 33 times increase in revenue for Fiscal Year 2023, reaching $73.68 million.

  • The company's robust expansion in commodity trading, particularly in jewelry and gold trading, led to the significant revenue growth.

  • Blue Hat's new business line of commodity trading contributed a profit of nearly $1.2 million for the Fiscal Year 2023.

  • The company's CEO, Mr. Chen Xiaodong, emphasized the strategic transition and plans for further expansion in commodity trading, online gold derivatives trading, and the integration of artificial intelligence.

Negative
  • Despite the substantial revenue growth, Blue Hat reported a net loss of $21.72 million for Fiscal Year 2023.

  • The net loss was primarily due to bad debts and asset impairment resulting from divested businesses.

Insights

Blue Hat's reported revenue of $73.68 million, representing a 33-fold increase, is a financially seismic event that demands scrutiny. While top-line growth is typically indicative of business expansion or market capture, their net loss of $21.72 million raises questions about the sustainability of their business model. The pivot to commodity trading appears to have paid off in terms of revenue, but the profit contribution from this new line of business, albeit positive, is a drop in the ocean compared to the overall loss. Investors should consider the volatility and potential risks associated with commodity markets, especially in the fields of jewelry and gold. The company's forward-looking statements suggest a focus on leveraging technology to enhance its trading practices, which could present opportunities for operational efficiencies and margins improvement in the long term. However, the high level of bad debts and asset impairment reflect financial management issues that must be addressed to reassure stakeholder confidence.

The expansion into the commodity trading space, specifically in jewelry and gold, represents Blue Hat's strategic attempt to diversify and capitalize on market trends. Gold, traditionally a safe haven for investors during volatile economic periods, could provide a steady stream of transactions and liquidity. However, the scalability and replicability of such success could vary significantly given market conditions. Also, the aspiration to become a 'smart' gold trader with the integration of AI technology could position Blue Hat favourably against competitors by potentially reducing operational costs and increasing trading efficacy. Nevertheless, the actual application and benefit of AI in their trading practices remain to be seen. Investors would be wise to keep an eye on the execution of these technological advancements and their actual impact on the company's operational results.

XIAMEN, China, April 30, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), primarily a company of commodity trading in China, today announced its audited financial results for the fiscal year ended December 31, 2023 (“Fiscal Year 2023”), reflecting a remarkable surge in the revenue.

Fiscal Year 2023 Financial Highlights

Blue Hat achieved a revenue of $73.68 million in 2023, increasing 33 times than the previous year. This extraordinary achievement is credited to the company's robust expansion of its commodity trading business, particularly in the realms of jewelry and gold trading, since the fourth quarter of 2022. However, despite the substantial revenue growth, the company incurred a net loss of $21.72 million for the Fiscal Year 2023. The primary reasons for the loss include bad debts and asset impairment resulting from divested businesses. Notably, the Company’s new business line, commodity trading, contributed a profit of nearly $1.2 million to the company for the Fiscal Year 2023.

Management Commentary

Mr. Chen Xiaodong, CEO of Blue Hat, stated at the Company's annual summary meeting: "Our achievements in 2023 represent not only a breakthrough in financial data, but also a resounding affirmation of Blue Hat's business strategy transition. In 2024, we will continue leveraging on the technology and experience we have accumulated in past few years. We will deepen our commodity trading in jewelry, especially the diamond and gold trading, and meanwhile expanding online gold derivatives trading, which aim to deliver excellent performance and reward our investors. Furthermore, we are committed to embracing the era of artificial intelligence and inspired to set a new benchmark as a 'smart' gold trader."

Fiscal Year 2023 Financial Results

Please refer to Blue Hat’s annual report on Form 20-F for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission on April 30, 2024 for a detailed analysis of Blue Hat’s financial results.

About Blue Hat

Blue Hat was formerly a provider of communication services and IDC business, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in China. Leveraging years of technological accumulation and unique patented technology, Blue Hat is expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide. 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

 
CONSOLIDATED BALANCE SHEETS
     
  December 31, December 31,
  2023 2022
    (Restated)
     
ASSETS        
Current assets:        
Cash and cash equivalents $407,588  $69,273 
Restricted cash  1,587   1,129 
Inventories  17,545,153    
Accounts receivable, net  15,157,384   9,170,996 
Accounts receivable, related party  9,571    
Other receivables, net  4,182,706   4,704,455 
Other receivables, related party  1,941,723   1,427,829 
Prepayments, net  36,588   80,834 
Assets related to discontinued operation     6,077,554 
Total current assets  39,282,300   21,532,070 
Non-current assets:        
Operating lease, right-of-use asset  2,353,083   40,596 
Prepayments  2,388,435   2,495,570 
Property, plant and equipment, net  3,544,751   3,817,015 
Intangible assets, net     1,368,424 
Long-term investments  1,694,269   1,722,999 
Assets related to discontinued operation     3,300,184 
Total non-current assets  9,980,538   12,744,788 
Total assets $49,262,838  $34,276,858 
         
LIABILITIES AND EQUITY        
Current liabilities:        
Short-term loans - banks $273,713  $473,825 
Taxes payable  805,577   841,334 
Accounts payable  318,729   324,991 
Other payables and accrued liabilities  4,027,883   9,014,057 
Other payables - related party     22,643 
Operating lease liabilities - current  235,470   11,261 
Customer deposits  3,020   19,629 
Liability related to discontinued operation     6,700,468 
Total current liabilities  5,664,392   17,408,208 
Non-current liabilities:        
Operating lease liability  2,141,421   31,041 
Long-term loans banks      
Long-term loans – related party  834,950   914,771 
Convertible notes payable     1,393,499 
Total other liabilities  2,976,371   2,339,311 
Total liabilities  8,640,763   19,747,519 
Shareholder’s equity        
Ordinary shares, $0.01 par value, 500,000,000 shares authorized, 58,398,281 shares issued and outstanding as of December 31, 2023, 9,894,734 shares issued and outstanding as of December 31, 2022  583,982   98,947 
Additional paid-in capital  93,828,090   44,145,826 
Statutory reserves  2,143,252   2,143,252 
Retained earnings  (56,832,015)  (35,113,598)
Accumulated other comprehensive loss  898,766   834,513 
Total Blue Hat Interactive Entertainment Technology shareholders’ equity  40,622,075   12,108,940 
Non-controlling interests     2,420,399 
Total Equity  40,622,075   14,529,339 
         
Total liabilities and shareholders’ equity $49,262,838  $34,276,858 


 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
       
  Year ended Year ended Year ended
  December 31, December 31, December 31,
  2023 2022 2021
    (Restated) (Restated)
       
Revenues $73,686,733  $2,195,954  $12,139,500 
Cost of revenue  (72,532,882)  (958,438)  (5,782,664)
Gross profit  1,153,851   1,237,516   6,356,836 
Operating expenses:            
Selling  (7,677)  (159,937)  (315,600)
Research and development  (2,570,158)  (2,734,982)  (11,233,806)
General and administrative expenses  (13,766,487)  (6,224,674)  (31,335,421)
Impairment loss  (13,693,305)  (33,397)  (14,632,931)
Total operating expenses  (30,037,627)  (9,152,990)  (57,517,758)
             
(Loss)/Income from operations  (28,883,776)  (7,915,474)  (51,160,922)
Other income (expense)            
Interest income  7   374   156,038 
Interest expense  (222,057)  (133,882)  (229,985)
Other finance expenses  (62,025)  (15,264)  (65,344)
Other income (expense), net  66,205   39,080   (191,499)
Total other expense, net  (217,870)  (109,692)  (330,790)
             
(Loss)/ income from Continuing Operations before income taxes  (29,101,646)  (8,025,166)  (51,491,712)
Provision for income taxes  (6,081)  (1,097,888)  (1,104)
(Loss)/ income from continuing operations  (29,107,727)  (9,123,054)  (51,492,816)
             
Discontinued Operations (Note 19)            
Gain on disposal of discontinued operations  7,389,310      1,493,945 
(Loss) from discontinued operations     (282,027)  (10,055,749)
             
Net Income (Loss)  (21,718,417)  (9,405,081)  (60,054,620)
Less: Net (loss) income attributable to non-controlling interest  (2,420,399)  (40,025)  (2,918,680)
             
Net (Loss) Income attributable to Blue Hat Interactive Entertainment Technology  (19,298,018)  (9,365,056)  (57,135,940)
             
Other comprehensive (loss) income            
Net (loss)/ Income from continued operations  (29,107,727)  (9,123,054)  (51,492,816)
Foreign currency translation adjustment continued operation  (199,032)  (1,883,571)  651,272 
             
Comprehensive (loss) income - continued operation $(29,306,759) $(11,006,625) $(50,841,544)
Income (loss) from discontinued operation  7,389,310   (282,027)  (8,561,804)
Foreign currency translation adjustment - discontinued operation  263,285   258,828   66,288 
Comprehensive income (Loss) - discontinued operation $7,652,595  $(23,199) $(8,495,516)
             
Comprehensive (loss) income $(21,654,164) $(11,029,824) $(59,337,060)
             
Less: Net (loss) income attributable to non-controlling interest  (2,420,399)  (40,025)  (2,918,680)
             
Comprehensive income (loss) attributable to Blue Hat Interactive Entertainment shareholders  (19,233,765)  (10,989,799)  (56,418,380)
             
Weighted average number of ordinary shares            
Basic  29,722,950   7,639,482   5,053,727 
Diluted  30,975,275   8,565,163   5,800,048 
             
Earnings per share            
Basic (loss) earnings per share from continued operation $(0.98) $(1.19) $(10.19)
Basic earnings per share from discontinued operation  0.33   (0.04)  (1.12)
             
Diluted Earnings per share:            
Diluted (loss) earnings per share from continued operation $(0.98) $(1.19) $(10.19)
Diluted earnings per share from discontinued operation  0.33   (0.04)  (1.12)

 

CONSOLIDATED STATEMENTS OF CASH FLOW
       
  Year ended Year ended Year ended
  December 31, December 31, December 31,
  2023 2022 2021
    (Restated) (Restated)
       
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net (loss) income $(21,718,417) $(9,405,081) $(60,054,620)
Net income (loss) from discontinued operation  7,389,310   (282,027)  (8,561,804)
Net (loss) from continuing operation  (29,107,727)  (9,123,054)  (51,492,816)
Adjustments to reconcile net income to net cash used in operating activities:            
Depreciation of property, plant and equipment  260,883   185,083   241,265 
Amortization of intangible assets  159,579   169,149   1,557,016 
Impairment of goodwill     3,681   14,537 
Impairment of intangible assets  1,075,997      14,632,931 
Impairment of Property, plant and equipment  17,308   29,716    
Impairment of inventory  12,600,000         
Interest expenses related to convertible note  146,322   100,314    
Share-based payments  3,659,080   4,043,550    
Issuance of common stock to pay for goods  42,420,000       
Provision for doubtful accounts  10,246,270   (1,060,782)  (29,661,273)
Deferred income taxes        119,127 
Changes in operating assets and liabilities:            
Accounts receivable  (14,915,499)  4,762,503   9,091,390 
Accounts receivables related party        1,906,101 
Other receivables  (1,208,861)  385,779   24,850,497 
Inventories  (17,545,153)  116,115   (41,460)
Prepayments  41,367   (773,671)  14,189,940 
Operating lease assets  22,102   276   (13,025)
Accounts payable  (6,260)  (21,891)  134,526 
Other payables and accrued liabilities  (4,986,175)  92,607   5,179,130 
Customer deposits  (16,609)  12,549   5,532 
Taxes payable  (35,756)  (395,191)  (5,337,785)
Net cash (used in) generated from operating activities - continued operation  (9,773,132)  (1,473,267)  (14,624,367)
Net cash (used in) generated from operating activities - discontinued operation  7,661,561   281,780   (5,488,297)
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property and equipment     (3,429)  (140,962)
Proceeds from disposal of equipment     9,760   52,799 
Purchase of intangible assets        (16,385,451)
Proceeds from disposal of intangible assets        12,985,106 
Disposal of a subsidiary  (15,380)     (866,075)
Acquisition of subsidiaries, net of cash received     5   (162,326)
Net cash from investing activities – continued operation  (15,380)  6,336   (4,516,909)
Net cash from investing activities  – discontinued operation        (1,952)
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from issuance of new shares  2,998,397   88,592   12,830,780 
Gross proceeds from issuance of convertible note     1,550,000    
Repayment of convertible note  (449,999)     (739,189)
Proceeds (Repayment) from other payables - related party     905,171   6,406 
(Repayment) from loan payables - related party  (102,464)     (14,117)
Change in restricted cash  (1,587)  (1,129)   
Repayments of short-term loans - banks  (138,393)     (4,663,292)
Net cash generated from financing activities – continued operation  2,305,954   2,542,634   7,420,588 
Net cash generated from financing activities – discontinued operation  (52,322)  (11,960)  154,260 
EFFECT OF EXCHANGE RATES ON CASH  210,505   (1,319,437)  1,439,535 
NET CHANGES IN CASH AND CASH EQUIVALENTS  337,186   26,086   (15,617,142)
CASH AND CASH EQUIVALENTS, beginning of year  70,402   50,449   15,752,704 
CASH AND CASH EQUIVALENTS, end of year $407,588  $76,535  $135,562 
             
Less: cash and cash equivalents from the discontinued operations, end of year     (7,262)  (85,113)
CASH AND CASH EQUIVALENT, FROM THE CONTINUING OPERATIONS, end of year $407,588  $69,273  $50,449 
SUPPLEMENTAL CASH FLOW INFORMATION:            
             
Cash and cash equivalents $407,588  $76,535  $135,562 
CASH AND CASH EQUIVALENTS, end of year $407,588  $76,535  $135,562 
             
Provision for doubtful trade receivables $(8,929,110) $(1,035,345) $(6,037,274)
Provision for doubtful other receivables  (1,207,145)  (22,869)  (13,484,319)
Reversal for doubtful prepayments  (110,014)  4,925   (10,166,240)
Allowance for inventory     (7,492)  26,561 
(Reversal)/Provision for doubtful accounts $(10,246,269) $(1,060,781) $(29,661,272)
             
Cash paid for income tax $6,081  $1,097,888  $1,529,850 
             
Cash paid for interest $222,057  $133,882  $229,985 
             
SUPPLEMENTAL NON-CASH INVESTING INFORMATION:            
Additional of operating lease, right-of-use asset $2,353,083  $40,596  $118,272 
             
SUPPLEMENTAL NON-CASH FINANCING INFORMATION:            
Operating lease liabilities $235,470  $11,261  $57,645 


FAQ

What were the financial results announced by Blue Hat for the Fiscal Year 2023?

Blue Hat Interactive Entertainment Technology announced a revenue increase of 33 times to $73.68 million for the Fiscal Year 2023.

What contributed to the significant revenue growth for Blue Hat in 2023?

Blue Hat's robust expansion in commodity trading, particularly in jewelry and gold trading, led to the substantial revenue growth.

What was the net loss reported by Blue Hat for the Fiscal Year 2023?

Blue Hat reported a net loss of $21.72 million for Fiscal Year 2023, primarily due to bad debts and asset impairment from divested businesses.

What profit was generated by Blue Hat's new business line of commodity trading in 2023?

The new business line of commodity trading contributed a profit of nearly $1.2 million to Blue Hat for the Fiscal Year 2023.

What are Blue Hat's CEO, Mr. Chen Xiaodong's plans for 2024?

Mr. Chen Xiaodong highlighted plans for further expansion in commodity trading, online gold derivatives trading, and embracing artificial intelligence in 2024.

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Electronic Gaming & Multimedia
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