6-K
Blue Hat Interactive Entertainment Technology (BHATF)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2024
Commission File Number 001-39001
BlueHat Interactive Entertainment Technology
(Translation of registrant’s name into English)
7th Floor, Building C, No. 1010 Anling Road
Huli District, Xiamen, China 361009
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Blue Hat interactive Entertainment Technology, a Cayman Islands exempted company (the “Company”), furnishes under the cover of Form 6-K the following:
Exhibit.
| Exhibit No. | Description of Exhibit |
|---|---|
| 99.1 | Earnings Release dated December 23, 2024, announcing the Company’s unaudited financial results for the first half of 2024. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: December 23, 2024
| BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY | |
|---|---|
| By: | /s/ Caifan He |
| Name: Caifan He | |
| Title: Chief Financial Officer |
EXHIBIT 99.1
Blue Hat Announces Financial Results for the FirstHalf of 2024, a 71.76% Decrease in Revenues to $13.08 million
Xiamen, China – December 23, 2024: Blue HatInteractive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT), a company primarily engaged in commodity trading in China, today announced its unaudited financial results for the six months ended June 30, 2024 (“First Half of 2024”).
First Half of 2024 Financial Highlights
| ● | First Half of 2024 total revenues<br> of US$13.08 million, compared to US$46.30 million in the prior-year period, due to decline of the market for glycol in 2024. Revenue from<br> diamonds trading business increased from nil for the six months ended June 30, 2023 to $13.08 million for the six months ended June 30,<br> 2024. This is a new business we started during the third quarter in 2023. |
|---|---|
| ● | First Half of 2024 gross profit of US$1.08 million, an increase of 1328.11% from US$0.08 million in the prior-year period. This is due to the new diamonds trading business we started during the third quarter in 2023. |
| --- | --- |
| ● | First Half of 2024 loss from operations of US$1.23 million, a decrease of 69.82% from loss from continued operations of US$4.07 million in the prior-year period. |
| --- | --- |
| ● | Net loss from continued operations decreased 70.30% to US$1.30 million for the First Half of 2024, from net loss from continued operations of US$4.36 million in the prior-year period. |
| --- | --- |
| ● | Net income from discontinued operations is nil for the First Half of 2024, compared with the net loss from discontinued operations of US$4,894 in the prior-year period. |
| --- | --- |
| ● | US$2.97 million in cash and cash equivalents as of June 30, 2024. |
| --- | --- |
Management Commentary
Since 2023 and 2024, Blue Hat has been actively transforming its business focus toward commodity trading, particularly in gold and related supply chain operations. In October 2023, the Company signed an agreement with Macau Rongxin to purchase 1 ton of gold, with the delivery completed by the end of August 2024. Gold sales are expected to generate revenue in 2025. This strategic move significantly boosted the Company’s asset value and validated the foresight of its management decisions. Mr. Xiaodong Chen, CEO of Blue Hat, stated, “In recent years, we have been expanding across various sectors of the gold industry. Notably, the gold delivery price in our agreement with Macau Rongxin was 473.70 RMB per gram (approximately $2,100 per ounce). With the rise in gold prices, the Company’s book assets have appreciated by over $21 million between August 2024 and December 2024. This achievement further affirms management’s sound judgment in business transformation. Moving forward, we will continue to increase our gold reserves, optimize our supply chain operations, and enhance our digital trading platform to better deliver value to our investors.”
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First Half of 2024 Results
Total revenues were US$13.08 million for the First Half of 2024, a decrease of US$33.23 million, or 71.76%, compared to US$46.30 million in the prior-year period. It was due to decline of the market for glycol in 2024. diamonds trading business increased from nil for the six months ended June 30, 2023 to $13.08 million for the six months ended June 30, 2024. This is a new business we started during the third quarter in 2023.
Revenues from sales of commodity trading were nil for the First Half of 2024, compared to US$45.94 million in the prior-year period.
Revenues from sales of diamonds trading were US$13.08 million for the First Half of 2024, compared to nil in the prior-year period.
Revenues from sales of information service were nil for the First Half of 2024, compared to US$0.37 million in the prior-year period.
Gross profit increased 1328.11% to US$1.08 million for the First Half of 2024, from US$0.08 million in the prior-year period.
Total gross margin was 8.26% for the First Half of 2024, compared to 0.16% in the prior-year period. This is due to the new diamonds trading business we started during the third quarter in 2023.
Total operating expenses decreased by US$1.84 million for the First Half of 2024, from US$4.14 million in the prior-year period, primarily as a result of decreased general and administrative and research and development in the first half of 2024.
Loss from operations decreased 69.82% to loss from operations of US$1.23 million for the First Half of 2024, from US$4.07 million in the prior-year period.
Net loss from continued operations decreased 70.30% to net loss from continued operations of US$1.30 million for the First Half of 2024, from US$4.36 million in the prior-year period.
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Net income from discontinued operations decreased to nil for the First Half of 2024, from net loss from discontinued operation of US$4,894 in the prior-year period.
Basic loss per share from continued operations was US$0.02 for the First Half of 2024, compared to US$0.36 in the prior-year period.
Basic loss per share from discontinued operations was nil for the First Half of 2024, compared to nil in the prior-year period.
Balance Sheet Highlights
As of June 30, 2024, Blue Hat had cash and cash equivalents of US$2.97 million, working capital of US$32.84 million and total shareholders’ equity (excluding the non-controlling interest) of US$39.78 million, compared to cash and cash equivalents of US$0.41 million, working capital of US$33.62 million and total shareholders’ equity (excluding the non-controlling interest) of US$40.62 million, respectively, as of December 31, 2023.
During the First Half of 2024, the Company completed a private placement by issuing 0.1 million restricted ordinary shares, at US$0.70 per share. The price was US$70,000.
About Blue Hat
Blue Hat was formerly a provider of communication services, as well as a producer, developer, and operator of AR interactive entertainment games, toys, educational materials and commodity trading in China. 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: [email protected]
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BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY ANDSUBSIDIARIESUNAUDITED CONSOLIDATED BALANCE SHEETS
| December 31, | |||||
|---|---|---|---|---|---|
| ASSETS | 2023 | ||||
| (Audited) | |||||
| Current assets: | |||||
| Cash and cash equivalents | 2,973,897 | $ | 407,588 | ||
| Restricted cash | 1,483 | 1,587 | |||
| Inventories | 5,544,171 | 17,545,153 | |||
| Accounts receivable, net | 24,594,955 | 15,157,384 | |||
| Accounts receivable, related party | 9,512 | 9,571 | |||
| Other receivables, net | 4,452,787 | 4,182,706 | |||
| Other receivables - related party | 1,964,933 | 1,941,723 | |||
| Prepayments, net | 18,939 | 36,588 | |||
| Total current assets | 39,560,677 | 39,282,300 | |||
| Property and equipment, net | 3,441,238 | 3,544,751 | |||
| Other assets: | |||||
| Prepayments | 2,373,656 | 2,388,435 | |||
| Operating lease, right-of-use asset | 2,194,374 | 2,353,083 | |||
| Long-term investments | 1,683,785 | 1,694,269 | |||
| Total other assets | 9,693,053 | 9,980,538 | |||
| Total assets | 49,253,730 | $ | 49,262,838 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Short-term loans - banks | 272,019 | $ | 273,713 | ||
| Taxes payable | 800,428 | 805,577 | |||
| Accounts payable | 316,756 | 318,729 | |||
| Other payables and accrued liabilities | 5,063,631 | 4,027,883 | |||
| Other payables - related party | 29,393 | — | |||
| Operating lease liabilities - current | 239,061 | 235,470 | |||
| Customer deposits | 3,002 | 3,020 | |||
| Total current liabilities | 6,724,290 | 5,664,392 | |||
| Other liabilities: | |||||
| Operating lease liability | 2,007,365 | 2,141,421 | |||
| Long term payable -related party | 744,450 | 834,950 | |||
| Total other liabilities | 2,751,815 | 2,976,371 | |||
| Total liabilities | 9,476,105 | 8,640,763 | |||
| COMMITMENTS AND CONTINGENCIES | |||||
| Shareholders’ equity | |||||
| Ordinary shares, 0.01 par value, 500,000,000 shares authorized, 58,498,281 shares issued and outstanding as of June 30, 2024, and 58,398,281 shares issued and outstanding as of December 31, 2023 | 584,982 | 583,982 | |||
| Additional paid-in capital | 94,300,430 | 93,828,090 | |||
| Statutory reserves | 2,143,252 | 2,143,252 | |||
| Retained earnings | (58,127,862 | ) | (56,832,015 | ) | |
| Accumulated other comprehensive income | 876,823 | 898,766 | |||
| Total Blue Hat Interactive Entertainment Technology shareholders’ equity | 39,777,625 | 40,622,075 | |||
| Non-controlling interests | — | — | |||
| Total equity | 39,777,625 | 40,622,075 | |||
| Total liabilities and shareholders’ equity | 49,253,730 | $ | 49,262,838 |
All values are in US Dollars.
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BLUE HAT INTERACTIVE ENTERTAINMENT TECHNOLOGY ANDSUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| For the Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | |||||
| Revenues | $ | 13,078,529 | $ | 46,304,236 | ||
| Cost of revenue | 11,998,711 | 46,228,625 | ||||
| Gross profit | 1,079,818 | 75,611 | ||||
| Operating expenses: | ||||||
| Selling | — | 3,922 | ||||
| General and administrative | 1,966,815 | 2,865,496 | ||||
| Research and development | 340,389 | 1,273,215 | ||||
| Total operating expenses | 2,307,204 | 4,142,633 | ||||
| Loss from operations | (1,227,386 | ) | (4,067,022 | ) | ||
| Other income (expense) | ||||||
| Interest income | 16 | 5 | ||||
| Interest expense | (66,724 | ) | (291,703 | ) | ||
| Other finance expenses | (1,615 | ) | (11,099 | ) | ||
| Other (expense) income, net | (138 | ) | 6,386 | |||
| Total other expenses, net | (68,461 | ) | (296,411 | ) | ||
| Loss before income taxes | (1,295,847 | ) | (4,363,433 | ) | ||
| Provision for income taxes | — | 116 | ||||
| Loss from Continued Operations | (1,295,847 | ) | (4,363,549 | ) | ||
| Discontinued Operations | ||||||
| Income (loss) from discontinued operations | — | 4,894 | ||||
| Less: Net income (loss) attributable to non-controlling interests | — | 9,080 | ||||
| Net Loss attributable to Blue Hat Interactive Entertainment Technology | (1,295,847 | ) | (4,367,735 | ) | ||
| Other comprehensive loss | ||||||
| Net loss from continued operations | (1,295,847 | ) | (4,363,552 | ) | ||
| Foreign currency translation adjustment - continued operations | (21,943 | ) | (372,369 | ) | ||
| Comprehensive loss - continued operations | $ | (1,317,790 | ) | $ | (4,735,921 | ) |
| Net income (loss) from discontinued operations | — | 4,894 | ||||
| Foreign currency translation adjustment - discontinued operations | — | (152,116 | ) | |||
| Comprehensive loss - discontinued operations | — | (147,222 | ) | |||
| Comprehensive Income (Loss) | (1,317,790 | ) | (4,883,143 | ) | ||
| Less: Comprehensive income (loss) attributable to non-controlling interests | — | 9,080 | ||||
| Comprehensive income attributable to Blue Hat Interactive Entertainment shareholders | (1,317,790 | ) | (4,892,223 | ) | ||
| Weighted average number of ordinary shares | ||||||
| Basic | 58,462,704 | 12,052,427 | ||||
| Diluted | 59,705,029 | 13,333,094 | ||||
| losses per share | ||||||
| Basic loss per share from continued operations | $ | (0.02 | ) | $ | (0.36 | ) |
| Basic loss per share from discontinued operations | — | $ | — | |||
| Diluted losses per share | ||||||
| Diluted loss per share from continued operations | $ | (0.02 | ) | $ | (0.33 | ) |
| Diluted loss per share from discontinued operations | — | $ | — |
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