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 https://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: [email protected]
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
