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Caixing Technology - Pioneer of Diversified and Innovative Entertainment Education

$Color Star Technology (HHT.US)$ Color Planet Technology Co., Ltd. is an online education company dedicated to star art training, and integrates large-scale performances, equipment leasing, intellectual property licensing, and other projects. It has expanded into the field of online and offline entertainment education, and the software will be publicly tested in the near future.
Caixing Technology - Pioneer of Diversified and Innovative Entertainment Education
The company was previously known as Huitao Technology Co., Ltd. (Xinao Concrete), which sells and manufactures concrete. After undergoing restructuring, it officially changed its name on May 1, 2020, and then completed the acquisition of 100% of Color China Entertainment's shares on June 3. Color China is an emerging provider of performance equipment and music education, has a large number of assets dedicated to performing arts, and has unique experience in collaborating with many famous artists. On June 25, Sunway Kids International Education Group Co., Ltd., which was unable to operate properly due to the COVID-19 pandemic, was sold. On March 10, its subsidiary CACM established BayTao in a joint venture with BayDolphin Co., Ltd., which is mainly engaged in online education.
Caixing Technology - Pioneer of Diversified and Innovative Entertainment Education
Source: Company Structure Chart
On July 20, 2020, the company signed subscription agreements with several institutional investors, agreeing to sell 3,225,000 common shares through registered direct issuance, with a face value of $0.001 per share, and a private placement of 2,096,252 common shares, with total revenue of approximately US$4.19 million. Business analysis Beginning in 2020, the company carried out frequent capital operations. Previously, the concrete business was affected by environmental management policies and macroeconomics, and its performance declined markedly. By the end of 2019, many defaults and liabilities had been accumulated, and it was extremely difficult to reverse the business. As a result, sales were actively sought, and on May 7, 2020, Mr. Han and Mr. Ho took over. The company's business finances were cleaned up, and the new development direction was clarified. Currently, Color China is headquartered in Hong Kong and has branches in Beijing, Taiwan, Hong Kong, Shanghai, Shandong, South Korea, Thailand, Indonesia, Cambodia, etc. It is a cultural media group integrating large-scale performances, equipment leasing, intellectual property licensing and other projects. The company hosts more than 100 concerts every year, and has a complete industry chain of TV programs, film production, artist brokerage, music production, ticket sales, etc. With these industry star resources and professional producer resources, HHT announced plans to develop an online entertainment education platform soon after the acquisition. The platform will develop theoretical courses and practical courses in all fields of entertainment specialization, including vocal music, music production, song writing, film performance, script writing, professional sound engineer courses, lighting engineer courses, etc., covering all aspects of the entertainment field. According to the joint venture agreement, CACM is responsible for providing funding for platform operation and online courses, and the joint venture Baydolphin is responsible for platform operation, management, marketing, etc. Its profit model consists of course fees and copyright revenue as a platform channel. The platform has completed early development and multi-field course design, and will soon go live in public beta.

Industry prospects
With the rapid development of Internet technology, the increasing importance society attaches to education, and the continuous improvement of economic standards, the penetration rate of online education has gradually increased, and the industry continues to grow. According to iiMedia Research (iMedia Consulting) data, the online education market has exceeded 400 billion yuan in 2019, and the number of users was 261 million, an increase of 25.5% over the previous year. It is estimated that by 2020, the number of online education users in China will reach 309 million, and the market size will reach 453.8 billion yuan. In the online education user survey, 34.5% of users said they have some understanding of K12 online education; 38.1% of users believe that the teaching explanation process is closely related to the combination of technology; 44.8% of users said they will continue to wait and see the development prospects of online quality education; online quality education in the field of thinking and programming is most recognized by users, accounting for 37.2%.

According to UBS-S Research's forecast, the compound annual growth rate of online education sales in China will reach 43.35% in 2020-2025, and revenue of 684 billion yuan will be achieved by 2025. At the same time, due to the large volume of offline education, the compound annual growth rate of offline education sales in China will grow steadily at a rate of 7.18% in 2020-2025, achieving revenue of 1147 billion yuan by 2025. Affected by the COVID-19 pandemic, there has been an explosive increase in the number of online education users. With the global pandemic still severe, market space is expected to open up further, and the penetration rate will gradually be transmitted downward from first-tier cities. Color Planet is located in Asia, faces the world, and has good strategic partners and entertainment resources in Asia. It has a certain exclusive advantage in vertical classification, and I believe it will show excellent performance in this sector. In addition to the fact that the lecturers are all celebrities and famous people, with their own drainage effect, this move has brought great advantages to the rapid development of Color Planet and its occupation of the market. The CEO of an executive team specializing in competitive advantage - Lu Biao is a well-known filmmaker in China. He has 25 years of experience in the industry and has invested in many films such as “Xiju,” “The Transformative Gang,” and “I Want to Develop.” Has professional entertainment work experience and huge artist resources. Chief Art Officer - Taiwan Gold Medal Producer Peng Juxin, EMI Baidai Records China Music Director and Head of Drive Entertainment, Kojima Music Producer, Hunan TV I Am Singer Zhang Xinzhe and Producer and Arranger by CCTV Dream Star Partner Zhao Chuantuan. He has written classic albums for Longitudinal Line, Ren Xianqi, Du Dewei, Hu Yanbin, and An Yixuan. He has produced and supervised over 30 albums and 500 singles, and has extensive experience working with various record companies, including Sony, Warner, Rolling Stone, and Universal. Chief Technology Officer - Liu Yang, with a bachelor's degree in engineering from Tsinghua University and a double master's degree in financial mathematics and electrical engineering from New Mexico State University; was the president of MagnifinTech and CEO of Wave Sync; and was the regional manager of UBS Group's Murex. Executive Vice President - famous planner and host Zhang Man, currently works for Beijing Luer Culture and Art Co., Ltd. and Beijing Leding Ledong Culture Media Co., Ltd. Head of TV program planning, hosting, production and acting agency. The host of China's top ten rankings, has planned large-scale TV shows such as Zhang Xinzhe's national concert tour, Hunan TV's overseas Spring Festival Gala, etc. Entertainment consultant Liu Xiaoqiao is a professional who specializes in Sino-US collaborative film, television, live performances, and music production. At the same time, HHT also takes into account the Chinese and US markets, and can be better played as bilingual entertainment professionals.

Top star mentors
The company will sign over 180 celebrity mentors.
Bobby Rose - On June 30, US time, Color China signed a cooperation agreement with famous Hollywood director Bobby Roth. Bobby Roth will be the star mentor. Up to now, Bobby Roth has directed more than 100 TV episodes, 25 TV movies, 13 theatrical movies. Works well known to audiences around the world include “Prison Break”, “Lost”, “Agents of S.H.I.E.L.D.”, and the movies “Heartstealer” and “Jack the Badass.” Bobby Roth's feature film has received honors at over 100 film festivals, including the Cannes Film Festival, Berlin Film Festival, and Sundance Film Festival, and won the Miami Internet TV Festival's “Lifetime Achievement Award” in 2017. He is a founding member of the Independent Project and the first co-chair of the DGA Independent Thematic Committee. A star teacher who will pass on his experiences and feelings to students who are interested in movies. In addition, he will also provide a beneficial course arrangement for those interested in filmmaking by looking at actors, post-production, and costume design from the perspective of a director. The cooperation between the two sides will surely contribute to future film production, while also cultivating more outstanding filmmakers. Larry Carlton-Color China signed a mentorship agreement with Larry Carlton. He is a top master of jazz, blues, pop, and rock guitar in the US. So far, he has participated in more than 500 albums and received 8 Grammy nominations and 4 Grammy Awards. He was one of the most outstanding guitarists in the jazz scene in the second half of the 20th century. In addition to teaching his musical talents online, he will also be the first heavyweight to officially join the Color World Cloud concert. The concert uses a scene-style online interactive entertainment method, created live by professional staff, and brought a delicious feast performed online to audiences around the world. Li Nianhe - Mr. Li Nianhe is a famous music producer and songwriter famous on both sides of the Strait. His works, such as “Polaris's Tears,” “I Want to Know You Better,” “Prefer to Fall in Love with You,” and “Tang Yun,” are highly popular. There has been long-term close cooperation with Jay Chou, Pan Weibai, Lin Junjie, Li Yugang, Huang Bo, and Sun Yaowei. Qiu Peirong - famous producer. Qiu Peirong attaches great importance to the development of a musical foundation and personality. He has extensive experience teaching bass, and published the book “Touching the Electric Bass” in 2003, which is widely loved by bass fans, and is still the most used electric bass textbook by Chinese people. While collaborating with many top domestic singers such as Xueyou Zhang, Qi Qin, Zhou Huajian, Fei Yuqing, Zhang Huimei, Li Wen, Jay Chou, Chen Yixun, Wang Lihong, Chen Huilin, Mo Wenwei, and Wu Zongxian, he has performed all over the country, including Hong Kong, Macao and Taiwan, Southeast Asian countries, Australia, the United States, Canada, London and Paris. Shen Quanhong - famous producer in Asia. Shen Muheng has been deeply involved in the field of musical instruments for many years and is a highly respected musical instrument preschool teacher in Taiwan. He is currently a ukulele instructor trainer at the Taiwan Gonggong Society, an instrument instructor at many famous elementary schools in Taipei City, and a senior ukulele instructor at the Taiwan China International Music Promotion Association. He has coached ukulele, folk guitar, electric guitar, and electric bass for 37 years.

Chen Xiuzhu - Chen Xiuzhu is a famous music producer. He began working in pop music in 1988 and has been working in pop music for over 30 years now. On the harmonic side, he participated in the recording of over 3,000 records. In addition to this, she has also sung many soundtracks for movies and many TV commercials. Disney movies, Disney Children's Channel, and even Qiaohu preschool programs and audiobooks have the voice of Teacher Xiu Zhu. These singing experiences and qualifications have all become a solid foundation for future musical work. Because of this special nature, over the past 20 years, I have been responsible for the training of newcomers under many record companies, taught countless artists, and participated in the production of songs for over 100 albums. As a famous Taiwanese dancer, Wong Bo-wan is a famous Taiwanese dancer. She not only has a brilliant presentation of her dynamic dance posture, but also her unique understanding of choreography. With her rich emotional expression and ingenious rhythm control, she has been fully recognized both inside and outside the venue. Teacher Wong Bowan is a dancer used by Jay Chou, Zhen Ni, Fei Yuqing, Cai Qin, Lin Yilian, and many others. She also had an outstanding experience at famous shows such as Leung Ching Ru's concert, choreographing the Miss Asia finals, and choreographing various high-end commercial events. Mike Mclaughlin — internationally renowned live musician. Mike McLaughlin was the live band guitarist for Qi Qin and Xin Xiaoqi's concerts, participated in the production and recording of Xu Wei's album <>, and performed and collaborated with members of the legendary rock band Kiss. Other stars they have collaborated with include Chen Sheng, Junzi, the Shin Orchestra, SHE, Zhang Huimei, and Liang Jingru. Prior to 2002, they worked as professional recordings in Los Angeles, USA. Has recorded an album by Kiss Heavy Metal Drummer Peter Criss. He also collaborated with Peter Criss and became his go-to guitarist and toured all over the US. Participated in the recording of the “ONEFOR ALL” solo album released by Peter Criss in 2015. He collaborated with Peter Criss for his latest solo concert in Australia in 2017. Wei Guan - Famous Chinese artist Wei Xun (Win), a male pop singer from mainland China. In 2011, he participated in the “King of Chinese K-Songs Contest” and won the finals. In 2014, he joined the Direction Orchestra and acted as the lead singer. In 2015, he was a judge of the “2nd SING Xingsuo Original Chinese Pop Online Competition”. In 2017, solo singles “Hey We Go” and “I Miss U” were released one after another. In the same year, he participated in the competition for the entertainment program “Happy Boys” on Hunan TV in China, and finally won the national finals. On January 22, 2018, the solo single “MY QUEEN” was released. As a new generation Chinese artist, Wei Guan has a huge fan base in China. Star teachers themselves are a group with their own traffic. Their participation can attract a large number of fans to actively join and learn. The power of idols brings not only traffic but also resources. The artists' face-to-face communication gave the students greater passion, and the artists' cross-boundary lectures gave fans more freshness. Star teachers, including celebrities from different fields such as music, movies, sports, animation, fashion, calligraphy and painting, brought more experience to the students. Moreover, the company has not only online but also offline bases; it is the first education platform that combines online and offline. The all-star education platform “Color World” launched by the unique platform model company is not only an online entertainment education platform, but will also become a global artist exchange platform in the future. Color World not only has functions such as knowledge payment, copyright sales, artist brokering, cultural exchange, live video broadcasts, etc., but is also an international exchange and sharing platform. The software targets billions of students around the world. Color World hopes to create a new social media for entertainment and education. Students can not only learn professional knowledge and interact with their idols, but also buy celebrity related products. Stars can also purchase intellectual copyright etc. provided by students. Outstanding graduates can sign contracts directly with the company, become entertainers of Color Planet's wholly-owned subsidiary, and enter the entertainment industry to develop simultaneously. To this end, the company will establish offline training bases in the United States, the United Kingdom, Japan, South Korea, China, Thailand, Singapore, etc., so that students can study and teach face-to-face with their own star teachers. Currently, the company expects to host a global online concert on September 9. The guests will be famous artists from around the world, and it will be broadcast simultaneously on 100 video platforms. It is expected that a large number of viewers will pay to watch. It is believed that this event will bring considerable revenue and publicity benefits to Color Planet, and registered members will be introduced through this concert. Compared with the traditional online education sector, Color Planet has multiple advantages. Other teaching software revenue mainly comes from members' tuition fees, while Color Planet Company partly comes from peripheral products, which are equivalent to e-commerce channels. The company will develop and cooperate with entertainers and celebrities to sell products exclusive to the world one after another.

Business development strategy
Signed a strategic cooperation agreement with Böhler Information
On June 17, 2020, Bole Information signed a strategic cooperation agreement with Color China Entertainment, a wholly-owned subsidiary of Color Planet. The two parties will jointly create “Color World” all-star AR online education software and are committed to studying the future artificial intelligence development of “Color World” all-star online education software. Teaming up to create an all-star AR online education platform. Bole Information is a leading AR/VR/MR multi-scenario content operation service provider in China. It focuses on providing integrated solutions for technology research and development, content creation, and operation management in the AR field for application scenarios such as culture, tourism, popular science education, scenic spots, cinemas, museums, shopping malls, exhibition halls, banks, etc. As a technologically innovative enterprise, Bole Information adheres to the concept of pursuing professionalism and extreme development. With AR content development as the core, it integrates cutting-edge technologies such as face recognition and bone recognition across fields to create a technology-looking multi-person AR interactive all-in-one X-mirror (gravitational lens), which has accumulated hundreds of AR interactive content series with ten major themes. In addition to this, the company's self-developed intelligent management system can collect user portraits in multiple dimensions and empower merchants with accurate marketing and product iteration based on big data analysis. Popular science education, as the main direction of Bole's message, achieves true “education through fun”, breaks the traditional one-way teaching model, and defines future education through contextual experiential interactive learning. The strategic cooperation between the two parties can combine Color China's online and offline education channel resources and Bole Information's AR/VR technology advantages to integrate AR technology and artificial intelligence into the “Color World” platform, bring students a more vivid and intuitive learning experience, create a film, television, song, dance, and entertainment online education platform integrating creativity and AR technology, bringing more vitality to the global entertainment economy. Moreover, due to the outbreak of COVID-19, online education has ushered in a period of popularity, and the number of cases of infection in the US has exceeded 4 million. The average daily growth rate has not declined. Online education has remained the main method of learning for a long time. Reached a strategic cooperation agreement with Mixx Lifestyle on 2020/6/24, Mixx Lifestyle Co., Ltd. of the United States and Color China Entertainment, a wholly-owned subsidiary of Color Planet, signed a strategic cooperation agreement to jointly establish the company's first offline training base and live performance venue in New York. Mixx Lifestyle operates three chartered boats, two craft beer restaurants called Milk & Hops, located in the Upper East and Chelsea districts. An Asian cheese shop located in Astori that hosts hundreds of events in New York City every year, has rich experience in physical operation and event hosting. Mixx has signed a lease with Tribeca Associates for a 10,000-square-foot event room at 135 West 41st Street in New York City. Currently, the base is under full construction, and Color China will provide all necessary equipment to support the cooperation between the two parties. If the blockade is completely lifted in New York State at that time, it is planned to open in September 2020, with live classes during the day and as a venue for live performances in the evening. On the one hand, the company is inviting many famous artists and celebrities to conduct online classes, and on the other hand, it is also actively preparing to provide students with face-to-face interactive teaching opportunities with teachers after the blockade is lifted in the future. It is planned to gradually establish multiple offline training bases starting in the second half of 2020, including in Europe, Southeast Asia, China, etc. A number of local companies have also been contacted to discuss the establishment of the base. A framework agreement was signed with Mormon Animation Culture Communication (Shenzhen) Co., Ltd. and Color China Entertainment, a wholly-owned subsidiary of Color Planet, signed a framework agreement with Color China Entertainment, a wholly-owned subsidiary of Color Planet on July 9 of this year. The agreement clarified the direction of cooperation. In the future, multiple series of Moremoon products will be provided on the “Color World” platform. Mo Meng Animation is a multimedia design provider, including brand planning, brand design, brand management, marketing planning, graphic design, commercial photography, etc. With independent comic brand image operation and promotion as the core, it continues to enrich its brand “Devil Cat” while continuously expanding related fields, covering animation image licensing and derivative development and sales, animation image design, illustration design, long comic production, sales channel management, mobile game design, etc. Adhering to the value of “creativity drives innovation, innovation creates value”, we are committed to building China's top original animation brand. Mama Meng has collaborated with apps such as Tencent QQ, WeChat, Sogo Input Method, China Mobile Feixin, iWallpaper, and Baidu Hi. He won the overall category of the 2014 Northeast Asian Culture International Animation Contest. The conclusion of this partnership marks the management's aim to make “Color World” an innovative and diverse platform that differentiates it from traditional online education. It not only provides online and offline courses for star teachers, but also sells a variety of celebrity related peripheral products and brand collaboration products to provide users with a unique and rich experience. Furthermore, the platform will also allow users to send gifts to star idols, enjoy learning, and build an interactive educational social platform.
Valuation forecast
Caixing Technology - Pioneer of Diversified and Innovative Entertainment Education
Judging from management's estimated data valuation, the company's stock price is lower than the industry average. The DCF valuation model calculates the most conservatively. The discount rate is the GDP growth rate plus the actual inflation rate of 12%. By estimating the rapid growth period within three years, the total present value of HHT is about 9.1 billion yuan. The current stock price is clearly undervalued.

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