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Glory Star New Media Group
Holdings Limited (GSMG) is a leading mobile entertainment operator in
China. The GSMG ability to integrate premium lifestyle content,
including short videos, online variety shows, online dramas, live streaming,
its Cheers lifestyle video series, e-Mall, and mobile app, along with
innovative e-commerce offerings on its platform enables it to pursue its
mission of enriching people's lives. The GSMG large and active user base
creates valuable engagement opportunities with consumers and enhances platform
stickiness with thousands of domestic and international brands.
GSMG partners with JD.com Inc. (“JD”) is one
of China’s largest e-commerce platforms. As part of the partnership with GSMG,
the company will develop solutions to help JD fulfill their customers’ needs
for premium lifestyle-oriented online content, in the forms of text and
short-form videos. The content production for JD.com is a great
addition to Glory Star’s premium digital client lists which includes Tencent,
Alibaba, Weibo, Iqiyi as well as traditional consumer brand clients such as
Starbucks, Pantene, Louis Vuitton, Samsung and Sony etc.
JD.com is a leading
technology driven e-commerce company transforming to become the leading supply
chain-based technology and service provider. JD.com is the largest retailer in
China, a member of the NASDAQ100 and a Fortune Global 500 company.
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On April 6th GSMG
announced that it has integrated the commercial application of blockchain
technology into its CHEERS Video application and CHEERS e-Mall, as a result of
its strategic deployment and R&D investment in blockchain technology, which
began in 2019.
With the rise of the digital
economy, new forms such as digital payments, online videos, online music,
e-books, online games, and other online content and products are replacing
their traditional models and becoming a mainstream on their markets, thus
making the protection of intellectual property ("IP") a top priority.
Blockchain technology can be utilized as a trusted platform for verifying the
authenticity of IP ownership. Notably, blockchain technology has already played
an essential role in technological innovation and industrial transformation,
paving the way for major breakthroughs and developments in the field of digital
assets and digital rights management.
GSMG has utilized blockchain technology in developing
its digital copyright management platform. This platform will allow creators a
means to manage its digital copyright assets throughout the entire
digital-related transaction process from digital asset registry, validation,
rights confirmation, and verification. In addition, GSMG has launched
its internally developed digital copyright trading system, SaaS system, and
blockchain credits platform on its CHEERS Video app and CHEERS e-Mall. GSMG
expects these new products to further improve the efficiency of digital
copyright transactions and reduce intermediary costs.
GSMG also plans to utilize its competitive advantages
in research and development in the blockchain technology to empower small-
to medium-sized enterprises in the fields of mobile internet and 5G, and to
improve the application and development of blockchain technology in several
different fields, including digital assets, digital payments, digital rights,
and e-commerce.
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On March 29th GSMG
announced financial results for the full year ended December 31, 2020.
Full Year 2020
Operating Highlights
- Downloads of the CHEERS App1 was approximately
169 million as of December 31, 2020, compared to 85 million as of December
31, 2019.
- Average daily active users ("DAUs")2
of the CHEERS App increased to approximately 5.4 million from 1.9 million
for the full year of 2019.
- The Company's e-Mall carried 24,975 Stock
Keeping Units ("SKUs") in total as of December 31, 2020. Gross
merchandise value ("GMV") of the Company's CHEERS App was
approximately US$132 million, compared to US$19.4 million in the full year
of 2019.
Full Year 2020
Financial Highlights
- Revenues for the full year of 2020 increased
by 88.2% to US$123.8 million from US$65.8 million for the full year of
2019. Revenues from the Company's CHEERS App Internet Business increased
by 195.3% to US$83.6 million for the full year of 2020, from US$28.3
million in the full year of 2019, and represents 67.5% of total revenues.
Revenues from the Company's Traditional Media Business increased by 7.2%
to US$40.2 million for the full year of 2020 from US$37.5 million for the
full year of 2019, and accounts for the remaining 32.5% of total revenues.
- Income from operations for the full year of
2020 increased by 14.3% to US$30.7 million, from US$26.8 million for the
full year of 2019.
- Operating margin was 24.8% for the full year
of 2020, compared to 40.8% for the full year of 2019.
- Net income attributable to Glory Star's
shareholders increased by 11.2% to US$29.3 million for the full year of
2020, from US$26.3 million for the full year of 2019.
- Net margin was 23.6% for the full year of
2020, compared to 40.1 % in the full year of 2019.
Income from operations for
the full year of 2020 increased by 14.3% to US$30.7 million from US$26.8
million in the full year of 2019. Operating margin in the full year of 2020 was
24.8% compared to 40.8% for the full year of 2019.
Net income attributable to
Glory Star's shareholders for the full year of 2020 increased by 11.2% to
US$29.3 million from US$26.3 million in the full year of 2019. Net margin in
the full year of 2020 was 23.6% compared to 40.1 % for the full year of 2019.
Basic and diluted net income
per share for the full year of 2020 were US$0.54 and US$0.50, respectively. In
comparison, the Company's basic and diluted net income per share for the full
year of 2019 were US$0.64 and US$0.57, respectively. As of December 31, 2020,
the Company had cash and cash equivalents of US$17.7 million, compared to
US$6.9 million as of December 31, 2019.
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On March 16th GSMG
announced that it had signed a strategic cooperation agreement with E-Surfing
Media Co., Ltd., a subsidiary of China Telecom, to develop new
Augmented Reality ("AR") intelligence solutions for users on both
companies' platforms. Under the agreement, GSMG and E-Surfing Media will
conduct in-depth collaborations for 5G and AR technologies in areas such as AR
applications, intelligent on-demand videos, intelligent retail and more, which
will help promote the application of 5G and AR technologies in both content
development and content consumption.
Pursuant to the agreement,
both companies will share content, resolve technological challenges jointly,
and increase their business collaborations. In addition, by leveraging their
industry leadership in digital content and e-commerce, both parties will
enhance their core competencies, bolster their technical strengths, and further
promote the application of AR technologies on the CHEERS video and E-Surfing
Media platforms to further empower users and stimulate new consumption
behaviors through AR technology.
GSMG plans to integrate AR technology into all business
formats going forward, including its CHEERS video application, its CHEERS
e-mall, and within its new economic and cultural industrial park in Wuxi.
Furthermore, upon the signing of the agreement, GSMG will also be able
to utilize E-Surfing Media's 5G technology resources to build an AR platform on
its CHEERS video application. By integrating 5G and AR technologies into its
platform, GSMG can continue to improve and integrate its users' demands
for diverse and personalized entertainment solution, enhance its users' visual
and consumption experiences, and promote the development and application of 5G
and AR technologies in the industry.
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On March 9th GSMG
announced that it has signed an annual content cooperation agreement with
Beijing Youzhuju Network Technology Co., Ltd., a wholly-owned subsidiary of
ByteDance Ltd. Youzhuju is the operating
entity of Toutiao, which is ByteDance's content platform for Chinese language
news and information. Under the agreement, Youzhuju will provide to GSMG Toutiao's
real-time graphics and video content for integration into the Company's CHEERS
video platform. The agreement further provides that both GSMG and
Youzhuju will jointly develop and deploy software development kits and
application program interfaces to ensure the smooth integration and
transmission of Toutiao's provided content on the GSMG CHEERS Platform. GSMG
and Toutiao recognize the enormous market potential of the 5G era and thus plan
to work together going forward in order to explore more innovative
opportunities for cooperation in many other fields, including search and AI.
GSMG has already integrated many forms of content into
its CHEERS app, including CHEERS e-Mall, an original short-form video IP
matrix, high-quality short- and medium-form user generated video content,
audio, self-produced TV dramas and variety shows, the CHEERS series variety
programs, interactive live broadcasts, games, graphics, and more. GSMG
will be able to include Toutiao's high-quality, personalized, and original
content on its CHEERS video platform through its cooperation with Youzhuju.
This will help to further expand the number of content scenarios on the CHEERS
video platform as well as enrich the platform's overall content ecosystem,
which will enable GSMG to satisfy the diverse information needs of its
users and significantly enhance their immersion and activity. More importantly,
the cooperation between GSMG and Youzhuju will play a significant role
in strengthening connections between users, content, and consumption on the
CHEERS video platform as well as improving the GSMG ability to convert
its CHEERS e-Mall traffic.
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On March 4th GSMG
announced that it was honored to receive a team of Malanshan Video Cultural
Park in the company’s Beijing headquarters. The Malanshan Team was led by
Deputy Secretary of the Kaifu District Committee of Changsha and Secretary of
the Party Working Committee of the Park, Benmiao Zou, and included Member of
the Party Working Committee and Deputy Director of the Management Committee of
the Park, Yan Huang, Director of China Merchants Cooperation Bureau Bin Hu, and
others. During the visit, the Malanshan Team participated in discussions with
the GSMG management team, which included its CEO Bing Zhang, CFO Perry
Lu, CIO Qingfei Tang, and executive assistant Yida Ye.
As part of the discussion,
the Secretary of the Party Working Committee of the Park, Benmiao Zou shared
the Park's recent development and commented that the Park will focus on the
Internet, content production, cloud computing, cloud storage, 5G, audio-visual
technology, e-sports, copyright integrated services, public services, and other
key areas, while promoting the construction and development of companies and
projects by means of supporting infrastructure, reducing taxes and related
fees, supporting cultural and technological innovation, as well as optimizing
the business operating environment.
Following their discussions,
GSMG and the Malanshan Team agreed to establish an effective
communication mechanism, strive to implement the cooperation vision at the
industrial-level, jointly promote the sustainable and healthy development of
the cultural and technology industry, and help promote further development of
the Malanshan network information industry.
For more information on GSMG visit: http://www.yaoshixinghui.com/
