Glory Star New
Media Group Holdings Limited (NASDAQ: GSMG) ("Glory
Star" or the "Company"), a leading digital media platform
and content-driven e-commerce company in China,
today announced the commencement of the commercial applications of its
blockchain and non-fungible token ("NFT") technologies through its
digital copyright management platform (the "Platform"). The Platform
will allow Glory Star to further explore
business opportunities in NFT assets as potential new growth drivers for the
Company.
Interest in
NFTs derived from blockchain technology is growing rapidly. According to the
latest data from nonfungible.com, the value of the entire NFT market has grown
from less than $41 million three years
ago to $338 million at the end of 2020,
representing an increase of 724%. Furthermore, with the development of the
digital global economy, production, operation, consumption, entertainment, and
lifestyles are rapidly undergoing a digital transformation. This has led to
data becoming one of the most important assets in this new digital economy.
Consequently, new challenges in data authentication and authorization have also
become important issues to consider, and blockchain technology could play a
significant role in alleviating these challenges.
Glory Star's Platform
has been put to use in the Company's copyright management system for its CHEERS
video platform as well as the SaaS, point-redemption, and live-event modules
for its CHEERS e-Mall. The Company's Platform leverages cutting-edge
technologies such as blockchain, big data, and artificial intelligence to store
the key data for digital intellectual property ("IP") in a blockchain
database. The immutability, traceability, scalability, and transparency of
blockchain technology enables the Company's database to verify the integrity
and security of these assets through all registration, search, and other
processes. This ensures the credibility of the digital IP and the traceability
of user operations to ensure a trustworthy and authoritative copyright
platform.
Furthermore,
the Company's Platform offers effective tools for users to streamline copyright
validation, storage, protection, and other transactional processes for digital
assets to safeguard against copyright infringement. It also provides effective
solutions for industry challenges in copyright verification, monitoring, and
evidence collection. The Platform also provides digital asset blockchain
certificates to validate copyright, deploys a digital-asset DNA database for
cross-checking information and generating verification reports to monitor
copyright, and leverages blockchain technology to enable the collection of
ownership data, confirm the digital asset's ownership online, and execute
copyright transactions to generate funds by trading asset-backed securities
through the blockchain. As previously announced, the Company has signed a cooperation
agreement with Beijing Minsheng Art Museum to promote the application of NFT
technologies for digital content. Both parties plan to further explore the
feasibility of minting joint NFT assets and participating in the trading of NFT
artwork and other collectible digital assets. In addition, Glory Star will
integrate a new category of cultural and art collectibles on the Company's
CHEERS e-Mall platform, which will provide a boost to the circulation and
promotion of Chinese artwork and further improve the content ecology on CHEERS
applications.
Mr. Bing
Zhang, Founder and Chief Executive Officer of Glory
Star, commented, "As an innovator in the entertainment industry, we
have always actively monitored the digital development of culture, media, and technology
with great interest. Our commitment to R&D and investment in new technology
has always been critical to our strategy to integrate our product ecosystem
with the new digital economy. We are confident that such efforts will enhance
the competitiveness of our products and fortify our industry leadership. Going
forward, new applications for blockchain technology will be an important focus
for us to promote rapid growth not only for Glory
Star but for the entire digital content industry as well."
GSMG is Partnered with other Giants: ByteDance,
E-Surfing Media, JD.com, China Mobile & China Teleco
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On to the Numbers and Earnout Targets:
Glory Star New
Media Group Holdings Limited (NASDAQ: GSMG) a leading mobile and online
digital media and entertainment company in China,
today announced its financial results for the full year ended December 31, 2020.
First
Quarter 2021 Operating Metrics Highlights
·
Downloads of
the Company's CHEERS Video Application1 increased by 91.6% year
over year to 192.6 million as of March 31, 2021.
·
Average daily
active users ("DAUs")2 of the Company's CHEERS Video
Application increased by 73.2% year over year to 7.1 million.
·
Stock Keeping
Units ("SKUs") carried on the Company's CHEERS e-Mall platform
increased by 284.2% year over year to 36,887.
·
Gross
merchandise value ("GMV")3 of the CHEERS e-Mall
platform increased by 963.2% year over year to RMB432
million.
In addition,
the Company announced that both of its earnout targets for fiscal year 2019 and
2020 for Glory Star New Media Group Limited ("GS Media") under the
Share Exchange Agreement, dated September 6, 2019 (the
"Agreement"), and as amended by that certain Joinder to the
Agreement, dated as of November 1, 2019 and
the Amendment to the Agreement, dated December 29,
2020, by and among the Company, GS Media, and other parties to the
Agreement, were fully achieved.
·
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.
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