Color Star Technology Co., Ltd. (NASDAQ: CSCW) Signs Memorandum of Understanding Regarding Acquisition with Shengcheng Group and Lays Out Plan for Provision of Global Technology-Based Digital Business Solutions
NEW YORK, Sept. 10, 2021 /PRNewswire/–Color Star Technology Co., Ltd. (NASDAQ: CSCW) (hereinafter referred to as “Color Star” or the “Company”), an entertainment technology company devoted to the application of technology and artificial intelligence (AI) in the entertainment industry, announced today that its wholly-owned subsidiary, Color China, signed a memorandum of understanding regarding the plan to acquire Beijing-based Shengcheng Strategy Consulting Co., Ltd. (hereafter referred to as “Shengcheng Group”). In the future, Color Star will apply industrial digitization to software development to realize the concept of “internet + idea” and provide marketing services and business solutions for global enterprises.
Founded in 2009, Shengcheng Group is a comprehensive, digital solutions and implementation services provider for businesses. Since its establishment, the company has become a leader in the industry, and has maintained profitability for ten years, with business revenue exceeding RMB 100 million for each of 2017 and 2018. The company focuses on providing overall solutions for enterprise management consulting in the field of technology-based digital marketing. Keeping up with industry development trends, the company explores and puts into practice a system that combines B-B-C (business to business to customer) and O2O (online to offline) models. The company’s services include digital intelligence strategy consulting, digital system development, big data and intelligent applications, smart operation services, and business management guidance. At present, its main industry focus is automotive, providing professional big data analysis and digital transformation services for nearly 100 auto brands, including Dongfeng, Nissan, FAW, Toyota, SAIC, and Guangzhou Honda. This year, with the introduction of a new team, the company expects to generate USD 33 million in revenue. With strong support from Color Star, it also plans to go public on the Growth Enterprises Market (GEM) in China in the near future. Color Star’s merger and acquisition plan with Shengcheng Group is based on careful evaluation of the company’s mature business model and broad industry prospects. Following the acquisition, the two companies will leverage their corporate strengths while cooperating to expand to more industries and move toward globalization within Color Star’s established international network.
Mr. Basil Wilson, CEO of Color Star, commented: “The digital field is our main development focus, especially in terms of software traffic and big data analysis. It not only creates an inseparable connection between our related businesses, but also provides other companies with precise marketing capabilities. Our cooperation with Shengcheng Group is a significant milestone as we expand our business services into the digital field. As a professional entertainment technology company, Color Star will also provide comprehensive digital marketing solutions for the world’s top companies in the near future. We believe this will attract more interest from our investment partners as well.”