NEW YORK, Feb. 9, 2021 /PRNewswire/ -- Recently,
Luke Lu, CEO of Color Star
Technology Co., Ltd. (Nasdaq: CSCW) (hereinafter referred to as
"CSCW"), accepted an interview with the HK Finet Group. Mr. Lu
provided the following responses regarding CSCW's corporate
breakthroughs and development in response to the COVID-19
pandemic:
Part 2: Continued from Part
1
Journalist: Next, let us talk more about the company's
business plans for the second half of the year and future
development. The initial success of CSCW has filled the company
with hope for the future. From now through the second half of the
fiscal year – from January 2021 to
June 2021 – what are your plans and
expectations for CSCW?
CEO: Our transformation is a new beginning. In the
future, the company will move to an offline entertainment +
Internet-based model, which is inspired by our online experience in
the first half of the year. In fact, we have already begun work to
realize this model and have formulated a work plan for the period
from January 2021 to December 2021. There is a great demand for our
business and many customers have made reservations for online
activities. Our activities have been scheduled up to July and
orders are still continuing. We pray that the spread of the
pandemic will slow down soon and we are ready to respond
accordingly when it does. To thank everyone, we are also in
discussions with well-known singers to plan a charity performance
for everyone later this year. It is our hope that we can help to
give everyone a happier life this year. I personally also hope that
CSCW will provide shareholders with a good annual report at the end
of the year.
Journalist: The business development you are talking
about here refers to the online business model, correct?
CEO: Covid-19 is still restricting and affecting our
lives to a large extent. Although vaccines are being distributed in
many countries, in the meantime, people still hope to have some fun
and relief from the year-long pandemic. We are willing to help.
Our current business model includes online concerts, celebrity
online education, celebrity peripheral products, and upcoming
celebrity interactive videos, which will bring a whole new
experience to fans around the world. The company will continue to
dig deeper into the online model, increase its efforts to develop
IR artificial intelligence and AR video effects and other sectors,
and incorporate technology components based on our original
business. This is not a simple matter of just watching the concert
online - let me give an example. I look at the company's business
report every day and the most popular and influential American
stars today are among the stars of our online concert bookings. The
previous, offline concerts of these top stars were watched by tens
of thousands of people via live audiences, but now, the audiences
and fans who buy tickets to watch these top stars number in the
hundreds of thousands (and in some cases, millions). This broadcast
volume is extremely large and cannot be supported by ordinary
systems. Although the online business has the advantage of
multiplying and expanding our consumer base, it also requires many
technological resources from and functions of the IT system, such
as how many servers are needed in which countries, data
transmission and calculation methods, network security issues, etc.
Now we have to consider these new issues and balance both technical
reliability and costs.
Recently, there has been a lot of internal discussion within
CSCW regarding IT development for our business, as we plan for the
company's future. It also gave me a new and in-depth understanding
of the development of the Internet. As we implement the
entertainment + Internet model, our team has embarked on this
journey with our audience and fans, and awaits the arrival of a new
world that incorporates this new model.
Journalist: Mr. Lu, what is the current situation of
CSCW's offline business? Amid the pandemic, the industry is mostly
in a state of suspension – is CSCW also?
CEO: First of all, I want to note that CSCW did not
abandon its original offline business just because it discovered
this new online business. In terms of offline business, we have
been working hard despite the pandemic and have a team that has now
settled in Dubai, so that we can
start our offline entertainment activities in the Middle East.
The International Jockey Club in Dubai, along with related entertainment
services (such as Club and LIVE HOUSE), are big attractions in the
local area. LIVE HOUSE's average annual sales total to about
$16 million USD. We are now
negotiating site selection with a number of local five-star hotels,
and our LIVE HOUSE plans to open in mid-year. With Dubai as the center, we plan to complete the
establishment of 2 or 3 LIVE HOUSE venues in the Middle East this year. The operating income of
each house should be as high as the average annual sales notes
above (possibly higher). After we have a physical Live House in the
local area, we will integrate an online platform, as appropriate,
to broadcast live performances of live artists. At the same time,
our team has reached business deals with many companies in
Dubai for TV programs and live
music festivals. For more information about our efforts and
operations in the Middle East
region, interested readers can review the company's year-end annual
report, under the offline entity business section of the financial
report section. This income is a new source of business for the
company, and with the potential market in the Middle East region, the scale of 2-to-3 LIVE
HOUSE venues, 3-5 concerts, plus the income of TV programs, the
company believes that it's worth doing business in this region.
Journalist: If this is the case, will CSCW achieve dual
business channel operation of its online and offline businesses
ahead of schedule within the year?
CEO: The company did not have a set schedule for
expansion and as such, it will not operate offline until the end of
the pandemic. We understand that many companies are also in the
same situation. When we develop the Middle East business and land in Dubai, we aim to overcome many of the
pandemic's effects as we continue to develop our offline physical
businesses.
Journalist: Since Amazon started its Internet business,
many companies such as Netflex, Uber, and Carmax have followed
suit, and now there are more. As we all know, the valuation of
Internet companies in the investment community is much higher than
that of physical companies. Do you have any plans to transform CSCW
into a purely Internet-based company in the future?
CEO: I have always believed that customers' needs should
guide the development of a company, not revenues. Of course, a
company cannot afford to stay unchanged and must adapt to the
development of the times, and we are no exception. CSCW exists to
serve our customers, which include audiences (online and offline),
fans and students. Online channels are very important and because
we also attach great importance to them, the company has increased
its investment in online channels. What I do must be in line with
the market to meet the needs of customers. As for the means of
service, I do not have a final say in this. This is what the
market/customers tell us, and we will then create it. Considering
that the business of most entertainment + Internet companies
in the market consists of music and video websites, etc., in
comparison, we provide more diversified and unique offerings.
CSCW's online business is both a sharing platform and a content
producer, with offline performances such as concerts, TV variety
shows, DJ parties, "cloud parties", etc., further enriching the
online business. We also have copyrighted content and are in the
process of developing artificial intelligence and visual scenes. In
the future, we will provide additional offerings on the online
platform, such as celebrity socialization and entertainment news,
and partner with celebrities to shoot and produce online movies and
television. This is our advantage. The pandemic did not defeat us,
but has only made us stronger.
Journalist: CSCW has made some achievements in business
development, both online and offline, including the development of
the Middle East market. Can you
talk about the more significant work that your company is
doing?
CEO: We have made great efforts to develop our business
this year, and we have achieved some results so far. You invited me
to talk about these things today and I am very willing to talk
about them, as they give me a great sense of satisfaction and
accomplishment indeed! However, some projects that have a major
impact on CSCW's future business (which can change the valuation of
the company by investors) must go through formal channels and be
reviewed by lawyers before I can announce them. But there is also
good news for you – CSCW has several influential, major market
projects and deals now entering their final stages, and will be
announced in the next 2-3 weeks. So just wait a bit longer, and
you'll hear more about those projects soon.
Journalist: I will pay attention to company news to see
what the company will develop next.
My last question is about the capital market performance of
CSCW. The company's business operations do not seem to be a major
problem and one could even say that the company is in a position
that many others would envy. Now CSCW has entered into the stage of
business development and market expansion before its industry
peers, simultaneously developing two business channels. But it
seems that this success has not translated to the capital market.
Why do you think CSCW's stock price performance does not mirror its
business development?
CEO: I have said before that I don't care about using the
stock price to measure the performance of CSCW's business and that
the stock market is out of sync. I think most companies are in this
same situation. This should be a temporary out-of-sync period
caused by lagging capital market information, which will eventually
balance itself out. While I did hear someone tell me that CSCW
stock is undervalued, I will not comment on that. Our company has a
clear division of labor – the CEO is responsible for the business
and the company's overall strategic layout while our VP and CFO are
specifically responsible for the capital markets. I personally
think that if someone underestimates the stock price of a company,
they must have their reasons. But at the same time, if investors
are buying stock in large quantities, it also reflects that many
investors think that this is their opportunity. The daily trading
volume of CSCW is in the millions or even tens of millions of
shares. It is said that this is a rare indicator for small-cap
companies. This trading volume also proves that the company has a
lot of investors and fans who treat CSCW as a star stock. While
supporting their favorite celebrities, they have also paid
attention to the company, proving that we have a lot of influence.
I believe that professionals in the capital market, fund managers,
and investment bankers understand our value. Every day,
institutional investors contact our CFO and VP by email and phone,
hoping to invest in us, which also shows that they are confident in
the company's future development.
Journalist: Thank you Mr. Lu. Your company's story is
very interesting. If possible, I would like to have a follow-up
interview with you later this year, okay?
CEO: Thank you very much for your interest. I would be
happy to have the opportunity to sit down and talk with you again
and answer your questions.
The Journalist's closing comment: The scale of
damage of the COVID-19 pandemic is unprecedented. It affects each
of us, every business, family and individual. CSCW is a
multi-faceted entertainment and online sharing platform with
celebrities as its core asset. I'm interested in CSCW because I
understand the story of the company and that they are fighting for
their own survival. Not only can I see how CSCW embodies the
survival of the fittest, but also through CSCW, we can see how
superstars have adapted and changed their brand strategies during
the pandemic. How do small and medium-sized enterprises survive the
pandemic? The pandemic has changed the work- and lifestyles of many
people, and even the top stars are no exception. There is no doubt
that Covid-19 is evil and generally hated by us, but the irony is
that it also treats everyone equally in life, and has nothing to do
with our wealth and status. Albert
Einstein once said: "In every crisis there is a huge
opportunity." CSCW seems to have found its opportunity. But for all
of us, what is our opportunity out of this crisis?
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
View original
content:http://www.prnewswire.com/news-releases/crisis-and-opportunity-coexist-the-battle-to-defend-the-survival-of-online-entertainment-in-the-pandemic-part-2---interview-with-color-star-technology-co-ltd-nasdaq-cscw-301224491.html
SOURCE Color Star Technology Co., Ltd.