NEW YORK, Aug. 25, 2021 /PRNewswire/--Color Star Technology Co., Ltd.'s (NASDAQ: CSCW) (hereinafter referred to as "Color Star" or the "Company") wholly-owned subsidiary, Color China, today announced the signing of a letter of intent to acquire shares in Hainan Dadatu Network Technology Co., Ltd. (hereinafter referred to as "Dadatu"). Color China is expected to either acquire the majority of Dadatu's outstanding shares, or invest directly in Dadatu's planned U.S. IPO listing. In the near future, Color China plans to undertake in-depth collaborations in the development, global operations management, and distribution of mobile internet games. In addition, Color China will leverage Color Star's experience in global strategic positioning and its overseas listing to provide an all-around interactive gaming experience to hundreds of millions of global users.
Dadatu was established in July 2019 with its main business focus on game development, distribution, and strategic operations for mobile users. It has a registered capital of RMB 10 million and has over 10 million users. Dadatu relies on a powerful online platform to develop into an online game company with game development as its core business. Its management team members come from first-tier gaming companies with access to abundant industry resources. Since its founding, Dadatu has released and operated hundreds of products and games, including 6 products developed fully in-house, and online games "Bright Sword," "Fate of Ascension", "Guanju Yipin," "The Legend of Wu Sheng," "Legend of Shabak," "Gourd Baby," "Golden Coin Rich," "Shang Dao Master" and many others that have been well received by users. In particular, "I am in Jianghu" and "Doomsday Bloody Battle" achieved monthly sales of RMB 30 million and 40 million, respectively. Data from multiple sources show that Dadatu has comprehensive product offerings; utilizing analysis of game segmentation, precise positioning, and unique buying methods for product release, it has seen rapid growth in the user base and product revenue which prepare Dadatu to become an industry leader. Dadatu's 2020 annual net income exceeded 15 million, and its performance signifies potential for rapid growth in 2021.
Through the share acquisition, Color China and Dadatu plan to jointly develop online games and expand in the fast-growing gaming market, leveraging the commercial advantages of both companies to promote continuous product improvement and attract more users via innovation and the use of artificial intelligence. Product diversification and the development of related products such as peripheral products, online game courses, among others, are expected to also become new revenue sources.
Basil Wilson, CEO of Color Star, commented: "Currently, mobile internet gaming is a huge market with billions of users around the world and unlimited growth potential. Through our cooperation with Dadatu, Color China expects to further expand in the online game industry to reach a larger market. In addition, this share acquisition will favorably influence the market value of our U.S.-listed parent company, Color Star. We believe Dadatu is a company with great potential, and hope this share acquisition will help Dadatu acquire an important position in the international mobile gaming market."
The successful realization of this merger will be a new stepping stone for Color Star in the field of entertainment technology. Color Star believes that mobile internet games will experience explosive growth in the future. Whether via direct acquisition or IPO, Color Star will gain greater profit from the merger with Dadatu and the participation in the mobile game market.
About Color Star Technology
Color Star Technology Co, Ltd. (Nasdaq CM: CSCW) is an entertainment and education company that provides online entertainment performances and online music education services. Its business operations are conducted through its wholly-owned subsidiaries Color China Entertainment Ltd. And CACM Group NY, Inc. The Company's online education is provided through its Color World music and entertainment education platform. More information about the Company can be found at www.colorstarinternational.com.
Forward-Looking Statement
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantee of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the educational and training services market in China and other countries where CSCW conducts its business; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof unless required by applicable laws, regulations or rules.
For more information, please contact:
William Tu
Skyline Corporate Communications Group, LLC
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office: (646) 893-5835
Email: wtu@skylineccg.com
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