BHAT - Earnings call transcript Q4 2020 | Fujian Blue Hat Interactive Entertainment Technology Ltd.

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Operator

Greetings, and welcome to the Blue Hat Interactive 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentations. [Operator Instructions] As a reminder this conference call is being recorded. It is now my pleasure to introduce Adam Prior, a representative of the Company. Adam. you, Thank

begin. You may

Adam Prior

available operator, for and Hat you you, ir.bluehatgroup.com. XXXX everyone. for the section Company's website hello us. The much at is XX, joining December Blue year so the press IR the of Thank ended Thank at release results announcing

Following Blue this for Hat's and the the call, will transcript next of of replay this days. websites be conclusion XX a broadcast made at

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by statements not With review in in to to those otherwise, Information changes Officer, before risks Mr. believes correct. of Company events risks that, except all I'd that result Executive Chen moment the future Although Exchange Chief results actual (Sean) making for summary Blue call. that any as are and discuss take about filings in Company's investment a format outlook to to could to assume a or There to financial be And with will Securities subject obligation dramatically, forward-looking as fiscal like you is those the prove discuss Financial can cause in associated of The an assurances Blue The in Mr. strategy. the included well. those return market investing results Hat He and Caifan the his update projected. forward-looking that statements in as we no Xiaodong information, now does Company in be Mandarin to and Commission, encourage any decision. conditions which or uncertainties from the law. will of expectations reflected a today's of an provide required brief today, highlights overview differ statements to expectations financial XXXX these are and the of growth Hat's as will provide Mandarin. Chief then operating will our Mr. Officer Chen year new reasonable

each follow hopefully translation certain is to follow will points this convenient easy portion We throughout within along. English presentation, so and at that

the for open then will floor questions. We

take questions I'll Mr. ahead reply, which will address into investors and us overnight will Chen. CEO, Xiaodong can a to as well. turn by Chen. management Chairman We call go of the With from the and that, also your point at and questions call over Mr. Mr. Mandarin Sean? Please that we'll to Chen few translate sent respond to outside

Xiaodong Chen

Thank you, everyone. Welcome Mr. Chen.

services fourth XX.X interactive revenues Over four Despite business. The top-line the pandemic XXXX. the bulk developed business which value strengthen and the were global in Internet Center of XX.X we which and achieved booked year, half toys proposition Data services million steps games, significant the our of interactive IDC or of in course foundation to pillars, quarter. communication games, business, includes the a in impact of had first XXXX, on we growth information Hat's our the U.S. of to which XXXX the XX.X% business, compares million, on to a took is education, newly several and the Blue mobile important our

the of the Company's primarily year and saw line. services we the Kingsoft enable by following closing the in to business growth Technology with have We companies period. Xunpusen saw China mobile step several other in portfolio strategic which with lines IDC This to of in partnerships driven geographic both the on or its announced business. and plans with this games China, of we business During will and through acquisition business Xunpusen expand platforms half XX for and the us which the grow XXX Csfctech of of product our is reputable and Mainland of Emirates, and new Mobile channels than Arab January increase Africa. of Since a base We've a Taiwan XX% than in of approximately and expansion. the Technology, the Fuzhou is enhanced a Cloud, XX% XX.X sales various two more second distributor game grow major more XXXX. our like games million business Co. subsidiaries, this of across to in the Japan, Csfctech period, developer our revenues an China, available from and U.S. United significant mobile was information acquisition million closed the year boosting IDC first user international prior forward

interactive kindergartens platforms. agreements our and announced systems, preschools technology ARIC about Reality several the education Augmented excited our Classes are implementation for We STEAM-focused Immersive having with opportunities and curriculum in of or the and

curriculum China. to teachers we and are agreement implement an with signed located being past XXX driven used Zhong Ya This with their our XXX technology train proprietary kindergartens currently in and program. Guangdong over ARIC working Education education February, Our and and are International in platform province classrooms Company throughout

Greater education this it for turn interactive He the Hong fiscal He. of expansion to over Area year Bay XXXX. for focusing XXXX. the that, contributions in Guangdong, our business Macau, I'll an overview Kong, on Mr. increased results continue Mr. anticipate financial With We from in

Caifan He

Thank you.

for Here's a our the quick results of summary year. financial

adverse compared educational businesses. compared fiscal pandemic COVID-XX XXXX Gross XX.X% was Blue million year the establishing had to these primarily million earlier, increase to million XXXX in the for was year. Gross fiscal interactive XX.X% costs XX.X prior and year total new XX contributions fiscal noted and to impact year, higher new initial services businesses prior As was to of revenues sales Hat or profit XXXX and the XX.X% business due our fiscal the services the XX.X fiscal on which and the with associated from year. XX.X fiscal these increased in margin IDC. communication year sale million prior from for Due to I new profit in information

a fiscal tax result operations to at year steady operating billion XXXX. for compared the year local was increase XXXX decreased the As to a U.S. expense the XXXX a million remained to from XXXX. now of X.X in for And X.X million I'll through million prior Sean? compared million the compared the XXXX fiscal in of in income in government, granted income fiscal finally, fiscal for million million end X.X remarks. X.X in in turn decrease following rate tax was effect concluding by year. which X.X Mr. was primarily to his expiration of X.X due expenses preferential income prior back Chen year, net X.X to This of it the

Xiaodong Chen

Thank you.

For Blue the remain Hat of better profitable challenges before the the has the despite by take we growth and positioned presented opportunities advantage feel past year, to us that XXXX. global pandemic in

Hat business Hat's remain expect or and establishment education in sales AR, While will the new To the our the expansion support efforts. We marketing business, we the to resulted initiatives. the and XXXX, families position products healthy. which to their take towards XX.X as shareholders did two to associates, our friends game mobile our of put of other anticipate of about complete we registered bottom balance in for executing investors growing direct as sheet at it intend We begun our open our efforts institutional impact cash like margin a in million, they Everyone results questions. from well total ahead. Blue as that and but offering end a thank interactive strategy Blue With the and offerings retail employees that in offerings. pillars proceeds reality our and going over growth to support. in XXXX. solid million line please Subject these a and on we're opportunities with business. to and see gross stay cash ongoing augmented safe we mobile I'd early up of we agreements or and operator, our increase new education the AR our this We moment tangible for to in operating to and sales improvement equivalents for conclude, optimistic have and year-end, sign gradual the on time, continue that did game of of remain stages a financial X.X

in then question the on line you your you as and be and please we possible would moderate throughout of translate English begin those For ahead. go process. if ask we Operator, we'll that the patient

Operator

Thank you.

William with from Chan. question-and-answer session. [Operator Instructions] your now first question. be of a will line question proceed Please Mr. We conducting comes Our

Unidentified Analyst

have everyone. one Hello question. I

And this of is Cloud between contribution be the are will And company Kingsoft the cooperate what plans other companies income? the to expected much So how any growth in future? and there then, Company bring the the margin? with Kingsoft operations to the

Adam Prior

the William. is to you, in relationship I the Cloud, and to business the The sure I on want Thank profile your question business, Kingsoft a understand make that margin just contribution of total that clearly. then correct?

Unidentified Analyst

Yes.

Adam Prior

then ahead. if in Mr. Chen line, could we'll Okay, terrific. for respond you please go and translate Lucy,

Lucy Ma

Language] [Foreign

Xiaodong Chen

Okay.

Tencent, such business after good sector our So, [Kingdom] [indiscernible] KD good. the have this new Cloud contribution and as think future and in and and the collaboration several is the our Company operation, XXXX months' IDC press announcements as attention well this also with contribution [indiscernible] between Kingsoft we to very of we release. brand Kingsoft, development Actually, pay has

Operator

you. Thank

your Our next the comes Paul Mr. Please of line question proceed with Chen. from questions.

UnidentifiedAnalyst

many would these the XXXX. I problem signed being the cooperation the interactive agreements capitalization? in are the Company difficult of is in What implemented? and encounter the proceed to has agreements biggest like ask, education How

Adam Prior

of Does may make Company to your in agreements program, has to it signed is question, the just that of clear? with sure, what okay. if number Paul, education these about Or the over I'm get going ARIC accurate? that question And repeat space. is as sound Company that's challenges agreements? kind it the The encounter Okay. I part interactive further of as your cooperation goes last a the want and that cooperation year

UnidentifiedAnalyst

Yes. it. That's Yes.

Adam Prior

you translating response. do the get management Lucy, back for with the we'll and mind team

Lucy Ma

[Foreign Language]

Xiaodong Chen

planning by operation open are co-operations was Even programs to seriously So, though, it's XXXX, the COVID-XX the the in we two Province. XXXX. have Sichuan or in do factors, interactive five the In more in Company in affected local markets we application provinces. have

we English from more to to financial sector investments are So, now still on, the in a resources more investment education develop have the courses. And operations. going we in in XXXX, and

Operator

Instructions] [Operator

Adam Prior

Thank you, operator.

think time a team in came they we read and where its respond. issued investors number received of those management the And Company this form them results. might post financial overnight questions that then the an I'll from I after the be appropriate let in and them to

came is is of at over an a IDC X the that a little was impact of is question from investor, in first business sales. contributed margin cost the revenue, So, million negative the percentage IDC which the but gross as

gross be Going great. margin if And level would forward, target of the is that you for that could would IDC what at this translate the what in be Lucy, achieved? sales business?

Lucy Ma

[Foreign Language]

Xiaodong Chen

retailer and is sectors overall to level of IDC toys, so The IDC such margin or and the of is the other whole, the a gross further as but of businesses negative the has impacts with business and the there Company the IDC on. integration will education margin the IDC as company even increase

of a large will revenue Cloud sector this growth [Kingdom] and there Company cooperation Tencent, XXXX profitability [indiscernible]. be to through and of Company number The the So, Kingsoft such the the with improve sector. of according Company improve will that will ways as their trend Company

Adam Prior

Lucy. or we questions? thank have further follow-up questions do Great, Operator, you, any

Operator

you. Thank do. We

Paul with Now, Please Mr. proceed rejoining Chen. your question. the is queue

UnidentifiedAnalyst

XXXX? of interactive What in Okay. the revenue What educational management is sector interactive of the education? growth the for the What strategy prospect contribution to XXXX? is is

Adam Prior

business, Okay, and XXXX, the business and for the interactive your if it. question, from plans be and great. education the of fair assessment XXXX education will kind then respond to Lucy, enough Contributions growth in interactive translate you'd to

Lucy Ma

Language] [Foreign

Xiaodong Chen

new with XXXX and of kindergartens to moment, very the in [indiscernible]. in are the XXXX going run XXXX, of So, have we are [indiscernible] the X,XXX education of is planning total in large also at revenues program out the contribution program have implementation the state to In have provinces preschools. in plan interactive kindergartens and to education in we cooperation interactive we

Adam Prior

Paul is sufficient. Thank you, Lucy. that

Unidentified Analyst

Yes.

Adam Prior

from follow-up you? Any Great.

UnidentifiedAnalyst

you. Thank That's all.

Adam Prior

as the did U.S. for I question year. It foreign the team dollar translation. in depreciated relationship worth overnight. dollar a the was a end XXXX a renminbi the of and the versus Chinese now to Company currency relating management year from The the We're during question had U.S. receive following loss year. beginning the of the the to Yuan is that than reversed, more is the now against

the reported RMB a we from Blue for is. revenue team I'll is XXXX? question leave expect management Hat gain currency And Should all it the as So in there.

LucyMa

Language] [Foreign

Caifan He

XXXX, higher dollar. It's we true between fluctuation in have that U.S. RMB and

So we also recorded year, we reporting sheet, a appreciated in use bit. from rate the the beginning and of we of in the value then rate is own little RMB the the of exchange statement RMB that and exchange business date. our But the the of because balance is average

value So, we use as avoid the a fluctuation. to and the a date currency day impact average reporting try to way or value of the reduce

Adam Prior

we in the queue? questions do have any Operator, other

Operator

There are no at this further time. questions

Adam Prior

not the line which do We multiple specific and Then bottom I'll growth guidance and received I conclude provide not. is the XXXX half year. relation in of with strategy has parties for guidance from Blue and or overnight, as in specific a Hat to question top that first

However, the growth management the and of over question strategy pose of I team think revenue it's the to next the growth fair course to year.

you that in if we received Lucy, could it multiple translate question day? -- throughout multiple parties So different the from different

Lucy Ma

Language] [Foreign

Xiaodong Chen

the businesses, education. main the including has IDC and two Yes, business Company sectors two

of there other in besides of these sector focus advantages the the high terms on IDC older be period will will Company two sectors compared also -- the And in XXXX, sectors, anticipates Company the there just mentioned. in growth will education So, the and Company to and year. strategy growth growth prior strengths the in the toys also more be a same

and about Company's information Thank quarterly the growth sectors report. more contribution revenue the of strategy the our share through will you. We

Adam Prior

call. Great, I our that concludes think

or our speak and or Relations to to we during and think next Company any call. free please with don't everyone firm, Thank investors financial results all management has thank have questions. the like always you out Investor feel available forward we're any to to I everyone. further Hat seeing team, the If reach its of to us. look to for conference you joining We'd anyone for Blue questions directly

Operator

Thank you teleconference. for your today's participation. conclude This does

you disconnect your time, wishing may a You great lines this at day.

Fujian Blue Hat Interactive Entertainment Technology (BHAT) 8 Apr 212020 Q4 Earnings call transcript