Paranovus Entertainment Technology Ltd is a holding company incorporated in the Cayman Islands on February 9 2018 under the name Happiness Biotech Group Limited. The company changed its name to Happiness Development Group Limited in October 2022 and then to Paranovus Entertainment Technology Ltd in March 2023. As a holding company it does not conduct any material operations of its own. Its current operations are carried out through its wholly owned subsidiary 2Lab3 based in Los Angeles and its 51 percent owned subsidiary BW which operates through Bomie US LLC and WooKoo LLC in the United States. Historically the company conducted business in the People's Republic of China through subsidiaries that were involved in nutraceutical and dietary supplements e commerce internet information and advertising and automobile sales all of which have been divested or suspended. The company's ordinary shares are listed on Nasdaq under the ticker PAVS following the name change effective March 14 2023.

Through 2Lab3 the company develops AI powered entertainment applications with the goal of generating revenue from game sales in app stores and in app purchases and possibly from licensing or partnerships. The company expects that once the game 10 000 Lives is launched it will generate income through initial sales microtransactions and brand collaborations. Through BW the company earns revenue from product sales on TikTok shops collaborative sales with influencers and service based fees for livestreaming operations influencer engagement and ad placement for third party merchants. BW also derives income from providing end to end store management services consulting on content creation and running paid advertising campaigns for merchants seeking to increase visibility on TikTok. Additionally BW receives fees for influencer identification campaign strategy and performance reporting which are billed as service contracts to clients.

The company operates through the following segments which reflect its primary sources of revenue and operational focus. The two reportable segments are AI Entertainment and E Commerce Solutions.

• AI Entertainment: 2Lab3 focuses on developing AI powered entertainment applications notably the mobile game 10 000 Lives formerly known as Hollywood Sunshine which uses AI generated content to create context for life goals and features celebrity partnerships for a socially connected experience and the company plans to monetize the game through initial sales in app purchases and brand collaborations.

• E Commerce Solutions: BW through its subsidiaries Bomie US LLC and WooKoo LLC provides TikTok shop operations livestreaming influencer engagement ad placement and product sales for merchants and brands seeking to expand their presence on social commerce platforms and the company also offers end to end store management consulting content creation and paid advertising services to help clients increase visibility and sales on TikTok.

For AI powered entertainment the company competes with mobile game developers that incorporate artificial intelligence such as those offering personalized avatars and narrative driven experiences its advantage lies in its AI driven content generation and celebrity collaborations which aim to differentiate its games in a crowded market. The AI powered entertainment market serves both casual and hardcore gamers across various genres and includes applications for entertainment and educational purposes that use machine learning to deliver personalized and innovative content. The company aims to establish a strong presence in North America and the Asia Pacific region while also planning to expand into Latin America the Middle East and Africa. For e commerce solutions BW operates in the rapidly growing TikTok shop ecosystem where many agencies provide similar services its competitive strengths include platform focused operational experience on TikTok a robust influencer and content network and an end to end suite of services that help merchants navigate the evolving social commerce landscape. Key trends in the TikTok shop space include live stream selling influencer marketing and social shopping with platforms increasingly integrating payment fulfillment and promotional tools to simplify merchant onboarding.

The AI powered entertainment segment targets mobile gamers and consumers interested in interactive storytelling and celebrity branded experiences. The e commerce solutions segment serves merchants brands and influencers who want to launch or grow their TikTok shop operations and who seek assistance with livestreaming product promotion and advertising campaigns. Users of the AI powered entertainment apps are expected to include individuals looking for personalized narrative experiences and fans of the celebrity partners featured in the games. Merchants served by BW range from small independent boutiques to larger enterprises that wish to use TikTok as a sales channel and benefit from influencer driven marketing. Influencers who work with BW receive support for campaign strategy content production and performance reporting to maximize their engagement and earnings on the platform.