To Build an Intelligent Gold Trading Platform
BEIJING, China, May 29, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ:BHAT), a company expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide today announced that its CEO has accepted an exclusive interview from China Finance Net.
As technology continues to advance especially in artificial intelligence, and globalization deepens, the financial sector is undergoing significant changes. New products, scenarios, and business models are emerging, with innovation being a core driving force of industry development. Blue Hat Interactive Entertainment Technology (the "Company", or "BHAT") (NASDAQ:BHAT), a publicly traded company listed on the Nasdaq Stock Market, is undertaking a business transformation, shifting its business focus towards commodity trading, particularly in the precious metals sector.
BHAT's transformation is based on a precise grasp of market trends and a comprehensive evaluation of the Company's resources. By optimizing its corporate structure, divesting from unprofitable businesses, and actively seeking new growth points, BHAT has successfully expanded its business portfolio to the commodity trading industry, including chemical products, diamonds, and precious metals (such as gold). Specifically, in the gold trading sector, BHAT has established close cooperation with Macau Rongxin Precious Metals Company in October 2023 and Dubai's GTC GROUP LLC in 2024.
BHAT's transformation aims to build a well-governed, technologically advanced international company. Leveraging its patents related to artificial intelligence ("Intelligent Patents") and domestic and international trade experience accumulated in its prior business in the gaming, toy, and education sectors, the Company has integrated AI technology into the gold trading business. BHAT, working closely with its new partners such as GTC GROUP LLC, has introduced innovative products such as an intelligent gold supply chain and recycling system, and a gold derivatives trading platform, aiming to provide customers with a more efficient, convenient, and secure trading experience.
BHAT aims to become the industry-leading "Smart Gold Trading Platform". Recently, China Finance Net conducted an exclusive interview with the Company's CEO, Mr. Chen Xiaodong:
Question 1: BHAT has recently been publicizing its business transition. Could you briefly explain the motivation and planning?
Answer: I believe many investors initially recognized us through our games and toys business, as reflected in the company name "Blue Hat Interactive Entertainment Technology". However, due to the impact of the COVID-19 pandemic, our prior business has been shrinking year after year. Starting from the fourth quarter of 2022, we have been gradually restructuring our business to include commodities trading such as chemical products, diamonds and precious metals (e.g., gold). In the process, we have built up our experience in the commodities trading sector and found that trading in bulk commodities brought significant improvement to the Company's performance.
In 2023, our management team decided to further reorganize our business, shifting our focus to commodity trading entirely and on an international scale. We dismantled our VIE structure during 2023, divested unprofitable businesses that were in straight loss, and actively explored new businesses：
- In October 2023, we signed a framework agreement with Macau Rongxin Precious Metals Company for the purchase of 1,000 kilograms of gold, marking our plan to enter into the gold trading sector.
- In March 2024, we signed a strategic cooperation framework agreement with Dubai-based GTC GROUP LLC. Last week, we further solidified this partnership by signing an acquisition intent framework agreement with GTC Multi Trading DMCC (GTCM), marking our plan to enter into the gold derivatives market.
Although we no longer operate our past businesses, these businesses have accumulated valuable technologies and resources for us, including a number of Intelligent Patents and experience in domestic and international trading. In the future, we will continue to develop our business in the trading of precious metal commodities (especially gold) and utilize AI technology to empower industry participants, such as launching intelligent gold supply chain and recycling systems, and gold derivatives trading platforms.
In short, our goal is to become the industry's leading " Smart Gold Trading Platform".
Question 2: We have noticed that BHAT has recently been acquiring companies under the GTC Group. What prompted BHAT to choose the gold sector specifically?
Answer: Indeed, the recent rise in the price of gold has attracted widespread attention. In particular, gold prices have risen by 13.45% in 2023 and by more than 20% so far this year. The main reasons for the price increase include the volatile global geopolitical situation, the increase of macroeconomic uncertainties and the gold-buying actions of central banks.
Gold has long been an important component of asset allocation. Not only individuals and asset management companies, but also central banks use gold as part of their diversified reserves. In recent years, global central banks have continued to increase their gold reserves, with global official gold reserves increasing by 290 tons in the first quarter of 2024. In addition to being a commodity, gold has monetary properties that give it liquidity; furthermore, its relatively low correlation with other financial assets makes it an ideal safe-haven asset. This is the reason why BHAT's management, after analyzing the macro situation, decided to choose gold as the focus of our commodity trading business.
In addition, we have been fortunate to meet a number of excellent partners during the business transition, such as, GTC, the Dubai Derivatives Exchange that we have recently announced to establish partnership with, as well as other gold trading and supply chain companies to be announced soon, all of these partners manage teams that have been deeply involved in the industry, with proven management systems and successful operating results, which further enhance our confidence in our continued growth in this sector.
Both Greater Bay Area and Dubai are major global distribution centers for gold trading. Relying on our unique business resources and successful partners, we hope to build BHAT into a high-quality company with sustained business growth and profitability, and ultimately reward our investors with superior performance.
Question 3: Can you further disclose the company's future business layout and related advantages?
Answer: In the future, the Company will continue to develop precious metal commodity trading with the aid of industry-leading artificial intelligence technology. In this regard, we will take "spot gold" and "contract gold" as the entry point, and actively lay out a full range of gold trading-related businesses.
In terms of "spot gold", we will actively lay out the gold supply chain to provide more efficient and convenient service solutions for gold traders and downstream merchants. In terms of "contract gold", we will cooperate with GTC, a the Dubai Derivatives Exchange platform, to provide the international market with more diversified gold derivatives.
When it comes to the Company's strengths, I believe that the BHAT team's strength lies not entirely in technology, but more in the integration of business resources and the application of new technologies on the ground. Personally, I am convinced that the development of AI technology will affect every segment of this industry, whether in the field of gold spot trading or contract trading. Of course, this is also a test for us: whether we can appropriately apply the maturing AI technology to trading or services may determine the ultimate height of our Company.
In conclusion, our goal is to become the best gold trading company in Nasdaq, and to contribute to the healthy and stable development of the gold industry, the management of gold price risks and the avoidance of business risks.
Question 4: Do you have any expectations for the company's future business development?
Answer: At present, our partners come from all over the world, including the Middle East (such as Dubai GTC) and Southeast Asia (such as Malaysia, Singapore, etc.). In the future, we will continue to expand our business map to Europe, North America and other countries and regions to achieve a globalized layout.
In gold trading business, we plan to keep increasing our gold holdings. Last year, we signed a framework agreement with Macau Rongxin Precious Metals Company for purchasing 1,000 kilograms of gold and expect to close this transaction in the near future. On this basis, we will continue to increase the amount of gold which is held by the Company in various forms and expand the scale of our gold supply chain business.
In the gold derivates business, we will join forces with GTC and commit ourselves to building a high-end brand for digital trading of financial derivatives at the level of hundreds of billions or even trillions of dollars of annual trading volume. We look forward to realizing the steady growth and long-term development of our business through these strategic layouts.
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: [email protected]
