- China’s
AR industry is estimated at RMB$55 billion in 2020
- Favorable
Chinese government policies emphasize research and development of new
technologies such as AR
- Few
direct competitors in China create exceptional potential for AR
application in educational materials and smart toys
- Total
retail sales of toys and games in China soared to RMB$276.5 billion in
2017 with an annual growth rate of 19.9%
- Shift
toward intelligent and interactive toys and games, along with rising
disposable income in China, helped retail sales of electronic toys grow
24% while traditional toys grew at 7% in 2017
- Extensive
portfolio of IR property with strong research and development teams and
partnerships
Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) is
a cutting-edge creator, developer and operator of popular augmented reality
(“AR”) interactive smart toys and educational games in China. Blue Hat’s
mobile-connected entertainment platform connects physical items to mobile
devices through wireless technologies, creating a unique interactive user
experience in various mobile games, interactive educational materials and toys
with mobile game features.
Blue Hat designs original toys and games that utilize
augmented reality technology, motion capture technology, image recognition
technology, voice control, light sense technology, infrared, levitation
induction, and other trending scientific technologies to transverse the virtual
with reality. Blue Hat creates a rich visual and interactive environment for
users through the integration of real objects and virtual scenery. This
combination provides users with a more natural form of human computer
interaction, enhances a user’s perception of reality, and delivers a more
immersive entertainment experience.
Proprietary Technology
Founded in 2010, Blue Hat’s proprietary technology, product
research and development, marketing channels and brand operation are the
cornerstones of the business. Blue Hat focuses on the combination of “online”
and “offline” activity and the interaction between “entertainment” and
“product” to create a high-tech entertainment platform combining mobile games
and AR. With the help of computer graphics, motion capture technology, image
recognition technology and visualization technologies, Blue Hat accurately “places”
virtual objects into the physical world, creating a new and stimulating visual
environment for users.
Blue Hat recently displayed a variety of its sci-tech
products at the Guangzhou International Toy Exhibition in China including AR
Racer, Elastic Bubbles, AR Space Track, AR Alloy Toy Car, AR Need a Spanking,
5D Animated Magic Aquarium, Bug Travelers, AR Picture Book and other
interactive games and smart toys.
The company has multiple products in development including
new generations of four primary product lines and two new product lines.
Patents and Copyrights
Blue Hat’s advanced AR technology in interactive
entertainment is protected by 178 authorized patents with 44 patents in various
stages of the application process.
Another 14 applications for Patent Cooperation Treaty, or
PCT, have been filed for international patents. As of March 31, 2019, the
company owns 645 copyrights for artwork, 71 registered trademarks and 27
software copyrights.
Sales and Marketing
There has been rapid growth in the toys and games industry
in China over the last several years. Total retail sales of toys and games in
China soared from RMB 111.8 billion in 2012 to RMB 276.5 billion in 2017 with
an average annual growth rate of 19.9% in 2017. Blue Hat believes the company
is well positioned with little competition as the toy industry rapidly shifts
toward intelligent and interactive toys and games. Retail sales of electronic
toys grew at 24% annually in 2017 while that of traditional toys grew at 7%.
In addition to a powerful ecommerce presence, Blue Hat has
long-term relationships with partnered distributors that place the company’s AR
interactive entertainment products into well-known international retail chains
and retail outlets. Blue Hat’s integrated online and offline sales channels
include e-commerce giants such as Amazon and Alibaba, retail chain stores and
the company’s physical experience store located in Xiamen, China. Blue Hat
plans to open or franchise approximately 100 additional stores in China by
2021.
Blue Hat’s community-based platform offers users a highly
engaged and interactive community with online communication forums and offline
social activities. The company advocates a new model of “teaching through
lively activities” and combines AR technology with education, integrating its
products into situational teaching, roleplaying and man-machine interaction.
This novel educational experience helps realize optimal transformation of
information, creating a knowledge and enhancing cognition.
Management
Director and CEO Xiaodong (Sean) Chen has over 20 years of
experience creating, developing and producing toys and games related products.
Chen earned his EMBA from Renmin University of China and has been chairman of
the board of directors and general manager of Fujian Blue Hat Interactive
Entertainment Technology Ltd. since August 2015.
CFO and Director Caifan, who has over 20 years of financial
accounting and taxation experience, earned a degree in finance from Hunan
University of Finance and Economics. He has served as director, deputy general
manager and financial controller of Fujian Blue Hat Interactive Entertainment
Technology Ltd. since August 2015.
Jianyong Cai, chief technology officer and director, has
over 35 years of experience in data communication principles, communication
network foundation, software engineering, communication network theory and
technology and computer network architecture. He holds degrees in data
communication principles, communication network foundation and software
engineering from University of Science and Technology of China. He has been
director, deputy general manager and chief engineer of Fujian Blue Hat
Interactive Entertainment Technology Ltd. since January 2010.
For more information, visit the company’s website at www.BlueHatGroup.net
NOTE TO INVESTORS: The latest news and updates
relating to BHAT are available in the company’s newsroom at http://ibn.fm/BHAT
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