Color Star Technology Reports Audited Financial Results for the Fiscal Year Ended June 30, 2020

NEW YORK,Nov. 14,2020 -- Color Star Technology Co.,Ltd. (Nasdaq CM: CSCW) (the "Company",or "Color Star"),an entertainment and education company that provides online entertainment performances and online music education services,today announced its audited financial results and the filing of its Annual Report on Form 20-F with the Securities and Exchanges Commission for the fiscal year ended June 30,2020. A copy of the Annual Report is available atwww.sec.gov.

"Today's announcement marks the filing of our Annual Report for the first time since we disposed the ready-mix concrete business and started to reposition the Company as a global,online+offline entertainment and paid knowledge sharing company. Looking ahead,with a continuously growing registered user base which now tops 500,000 and the combination of offline music festivals and online businesses that include online education academy,online concert,and online store,we firmly believe that Color Star is well positioned to succeed in years to come," commented Biao (Luke) Lu,Chairman and Chief Executive Officer of Color Star.

Fiscal Year 2020 Financial Highlights

For the Fiscal Year Ended June 30,

($ millions,except per share data)

2020

2019

% Change

Revenues

$nil

$nil

NA

Loss from operations

($5.16)

($6.66)

22.4%

Net loss

($11.63)

($14.39)

19.2%

Loss per share

($0.99)

($2.46)

59.8%

Financial Conditions

As of June 30,2020,the Company had cash,cash equivalents of $0.99 million,compared to $0.32 million as of June 30,2019. Other receivables were $1.00 million as of June 30,compared to $2,300 as of June 30,2019. Prepayment and advances were $1.17 million as of June 30,compared to $25,000 as of June 30,2019. Working capital was $2.63 million as of June 30,compared to working capital deficit of $1.14 million as of June 30,2019.

Net cash used in operating activities was $2.54 million for fiscal year 2020,compared to $1.08 million for fiscal year 2019. Net cash used in investing activities was $1.39 million for fiscal year 2020,compared to $0.14 million for fiscal year 2019. Net cash provided by financing activities was $4.80 million for fiscal year 2020,compared to $0.52 million for fiscal year 2019.

Recent Developments

On October 30,the Company announced that it had secured the naming rights for the Wu Muye Piano World Tour,under the name "Color World – Wu Muye Piano World Tour".

On October 25,the Company officially added online "Star Mall" feature to its Color World App.

On October 16,the Company announced that it will kick off its "Color World"-branded Music Festival Series in mainland China.

On October 9,the Company announced the launch of a series of interactive live events featuring its growing band of Star Teachers.

On October 6,the Company announced that it had signed separate cooperation agreements with three renowned South Korean musicians.

On October 1,the Company announced that its ordinary shares would commence trading on the NASDAQ Capital Market under the new ticker symbol "CSCW".

On September 28,the Company announced adding online store feature to its Color World App.

On September 25,the Company announced upgrading its Color World App with interactive live video streaming feature.

On September 23,the Company announced that it entered into a memorandum of understanding on September 21,2020 with FENT Co. Ltd.,a South Korean K-pop entertainment and artist agency service company,to acquire 100 percent equity interest in FENT.

On September 16,the Company announced that it had entered into a securities purchase agreement on September 15,2020 with certain accredited investors to purchase $6.6 million of its ordinary shares in a registered direct offering and warrants to purchase ordinary shares in a concurrent private placement.

On September 14,the Company announced the debut of the Color World App.

On September 9,the Company announced the lineup of its "Fearless,Color World" cloud concert.

On September 4,the Company announced entry into strategic agreement with China-Korea Culture and Art Exchange Association,expanding its online star education services internationally.

August 28,the Company announced collaboration with Red Phoenix Entertainment to strategically expand into sports education.

On August 25,the Company announced cooperation with the Romanian Chamber of Commerce and Industry,expanding its online star education services.

On August 21,the Company announced press conference to be held in Beijing on September 2,202 for Color World App

On August 19,the Company announced that it reached a long-term strategic agreement withThailand's"Sing Sian Yer Pao Daily News".

On August 17,the Company announced that its online star education mobile application platform "Color Star" had successfully completed its testing phase and many international celebrities had joined the platform in advance to create an all-star lineup of entertainment education network.

On August 14,the Company announced that Hung-Jen Kuo had been named to its Board of Directors.

On August 10,the Company received a letter from Nasdaq notifying the Company that it had regained compliance with Nasdaq Listing Rules 5550(a)(2),as the Company maintained a closing bid price of $1.00 per share or greater for twenty (20) consecutive days from July 13 through August 7,2020.

On August 10,the Company announced that Na Ying joined the Company's "Fearless,Color World" online concert.

On August 7,the Company announced that American rapper,singer,songwriter and actor Machine Gun Kelly joined the Company's "Fearless,Color World" online concert.

On August 5,the Company announced multi-platinum selling,Grammy and Golden Globe nominated recording artist Wiz Khalifa joined the Company's "Fearless,Color World" online concert.

On August 4,the Company announced that Syncopated Ladies,the team of Emmy nominated choreographer and international tap star Chloé Arnold joined the Company's "Fearless,Color World" online concert as the latest guest and opening dancers.

On August 3,the Company announced the launch of its official website.

On July 30,the Company announced that the famous Japanese idol Ryuta Hayashi joined the Company's "Fearless,Color World" online concert.

On July 28,the Company announced that its wholly owned subsidiary,Color China Entertainment Limited had signed a Cooperation Agreement with a famous Chinese singer Win (Wei Xun) and an international musician Mike Mclaughlin to serve as Star Teachers on the Company's online education platform Color World.

On July 27,the Company announced that the famous Grammy Award Winning American singer Ashanti joined the Company's "Fearless,Color World" online concert.

On July 24,Color China Entertainment Limited had signed a Cooperation Framework Agreement with Hong Kong's renowned tourbillon watch brand Memorigin to jointly design,produce and sell customized watches.

On July 23,the Company announced its wholly-owned subsidiary Color China Entertainment Limited had entered into cooperation agreements with Xiuzhu Chen,a renowned Asian music producer,and Bowan Wang,a renowned Asian dancer to serve as Star Teachers on the Company's online education platform Color World.

On July 20,the Company announced it had entered into a securities purchase agreement with certain accredited investors to purchase approximately $4.2 million worth of its ordinary shares in a registered direct offering and warrants to purchase ordinary shares in a concurrent private placement.

On July 17,the Company announced the resignation of Yang (Sean) Liu as CEO and chairman of the board of directors and the appointment of Mr. Biao (Luke) Lu as his successor.

On July 17,Color China Entertainment Limited had entered into a cooperation agreement with Shenzhen Yuren Production Culture Media Co.,Ltd.,through which renowned music producers Nianhe Li and Peirong Qiu,and music instructor Muheng Shen serving as Star Teachers on the Company's online education platform Color World.

On July 15,the Company announced its "Fearless,Color World" online concert to hold on September 9,2020.

On July 9,Color China Entertainment Limited had signed a Framework Agreement with Moremoon Cartoon Cultural Diffusion (Shenzhen) Co.,Ltd. to release multiple series of Moremoon products on the Company's Color World platform.

On July 7,Color China Entertainment Limited had signed a cooperation agreement with a renowned American musician,Larry Carlton to serve as a Star Teacher on the Company's online education platform Color World.

On July 2,Color China Entertainment Limited had just signed a cooperation agreement with a renowned guitarist,Zhengyan You (a.k.a. Masa) to serve as a Star Teacher on the Company's online education platform Color World.

On July 1,Color China Entertainment Limited had signed a Broadcast and Educational Licensing Agreement with the famous American director Bobby Roth.

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:

Sherry Zheng

Weitian Group LLC

Email: shunyu.zheng@weitian-ir.com

Phone: +1-718-213-7386

COLOR STAR TECHNOLOGY CO.,LTD. AND SUBSIDIARIES

(FORMERLY KNOWN AS HUITAO TECHNOLOGY CO.,INC.)

CONSOLIDATED BALANCE SHEETS

June30,

June30,

2020

2019

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

988,696

$

319,514

Other receivables

1,002,300

2,300

Prepayments and advances

1,170,000

25,000

Current assets of discontinued operations

-

52,158,699

Total current assets

3,160,996

52,505,513

OTHER ASSETS

Property,plant and equipment,net

3,958,335

-

Other assets of discontinued operations

-

1,659,520

Total other assets

3,335

1,520

Total assets

$

7,119,331

$

54,165,033

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Other payables and accrued liabilities

$

518,122

$

353,292

Other payables - related parties

10,711

540,000

Loans payable - employee

-

308,089

Current liabilities of discontinued operations

-

52,442,854

Total current liabilities

528,833

53,644,235

Total liabilities

528,235

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:

Preferred shares,$0.001 par value,1,000,000 shares authorized,no shares issued or

outstanding

-

-

Ordinary shares,74,25,623,822 and

7,174,626 shares issued and outstanding as of June 30,2020 and 2019,respectively

25,624

7,175

Additional paid-in-capital

69,689,789

54,237,082

Deferred stock compensation

(1,201,183)

(3,161,200)

Deficit

(61,923,732)

(64,031,446)

Statutory reserves

-

6,248,092

Accumulated other comprehensive income

-

7,221,095

Total shareholders' equity

6,590,498

520,798

Total liabilities and shareholders' equity

$

7,033

COLOR STAR TECHNOLOGY CO.,INC.)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Years ended June30,

2020

2019

2018

SELLING,GENERAL AND ADMINISTRATIVE EXPENSES

$

(1,598,984)

$

(2,065,829)

$

(918,605)

RESEARCH AND DEVELOPMENT EXPENSES

(120,000)

-

-

STOCK COMPENSATION EXPENSE

(3,444,617)

(4,592,200)

(1,388,501)

LOSS FROM OPERATIONS

(5,163,601)

(6,658,029)

(2,307,106)

OTHER INCOME (EXPENSE),NET

Interest income

-

84

13

Finance expense

(5,041)

(1,477)

(26)

TOTAL OTHER EXPENSE,NET

(5,393)

(13)

LOSS BEFORE PROVISION FOR INCOME TAXES

(5,168,642)

(6,422)

(2,119)

PROVISION FOR INCOME TAXES

-

-

-

LOSS FROM CONTINUING OPERATIONS

(5,119)

DISCONTINUED OPERATIONS:

Loss from discontinued operations,net of applicable income taxes

(12,245,168)

(7,729,108)

(5,092,846)

Net gain on sale of discontinued operations,net of applicable income

taxes

5,787,213

-

-

LOSS FROM DISCONTINUED OPERATIONS

(6,457,955)

(7,846)

NET LOSS

$

(11,626,597)

$

(14,530)

$

(7,399,965)

COMPREHENSIVE LOSS

Net loss

$

(11,965)

Other comprehensive (loss) income - foreign currency translation (loss) gain

-

(335,080)

347,097

COMPREHENSIVE LOSS

$

(11,723,610)

$

(7,052,868)

LOSS PER ORDINARY SHARE

Weighted average number of shares:

Basic

11,640,018

5,841,614

2,942,945

Diluted

11,945

Loss per share - basic and diluted

Continuing operations

$

(0.44)

$

(1.14)

$

(0.78)

Discontinued operations

$

(0.55)

$

(1.32)

$

(1.73)

Total

$

(0.99)

$

(2.46)

$

(2.51)

COLOR STAR TECHNOLOGY CO.,INC.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the years ended June 30,

2020

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(11,965)

Net loss from discontinued operations

(6,846)

Net loss from continuing operations

(5,119)

Adjustments to reconcile net loss to net cash (used in) provided by

operating activities:

Stock compensation expense

3,617

4,200

1,501

Changes in operating assets and liabilities

Other receivables

-

-

(2,300)

Prepayments and advances

(1,145,000)

15,458

(40,458)

Other payables and accrued liabilities

130,036

509,381

2,000

Other payables - related parties

-

540,000

720,000

Net cash used in operating activities from continuing operations

(2,738,989)

(1,383)

(239,376)

Net cash provided by (used in) operating activities from

discontinued operations

203,854

(73,759)

2,394

Net cash (used in) provided by operating activities

(2,535,135)

(1,076,142)

2,450,018

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of equipment

(2,000)

-

-

Cash acquired through acquisition of Color China

5,272

-

-

Proceeds from sales of discontinued operations

600,000

-

-

Net cash used in investing activities from continuing operations

(1,394,728)

-

-

Net cash used in investing activities from discontinued operations

-

(135,705)

(138,151)

Net cash used in investing activities

(1,728)

(135,151)

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings from shareholders

300,000

-

-

Proceeds from sale of ordinary shares,net of offering costs

4,502,901

950,000

600,000

Net cash provided by financing activities from continuing operations

4,802,000

Net cash used in financing activities from discontinued operations

(7,294)

(427,333)

(6,395,823)

Net cash provided by (used in) financing activities

4,795,607

522,667

(5,823)

EFFECTS OF EXCHANGE RATE CHANGE IN CASH,CASH EQUIVALENTS AND RESTRICTED CASH

(1,943)

(62,025)

149,203

NET CHANGE IN CASH,CASH EQUIVALENTS AND

RESTRICTED CASH

863,801

(751,205)

(3,334,753)

CASH,CASH EQUIVALENTS AND RESTRICTED CASH,beginning of year

347,486

1,098,691

4,433,444

CASH AND CASH EQUIVALENTS,end of year

$

1,211,287

$

347,486

$

1,691

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