Glory Star Fulfills Fiscal Year 2019 and 2020 Earnout Targets and Provides First Quarter 2021 Business Update

Rhea-AI Summary

Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) reported substantial growth in its first quarter 2021 metrics compared to the previous year. The downloads of the CHEERS Video Application surged by 91.6% to 192.6 million, while daily active users rose 73.2% to 7.1 million. The CHEERS e-Mall platform saw a remarkable 963.2% increase in gross merchandise value, reaching RMB432 million. The company also fulfilled its earnout commitments for fiscal years 2019 and 2020, bolstering its growth trajectory in e-commerce and digital media.

Positive

• CHEERS Video Application downloads up 91.6% YoY to 192.6 million.
• Daily active users increased 73.2% YoY to 7.1 million.
• Gross merchandise value of CHEERS e-Mall up 963.2% YoY to RMB432 million.
• Fulfilled earnout targets for fiscal years 2019 and 2020.

Negative

• None.

BEIJING, May 11, 2021 /PRNewswire/ -- 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 updated its operating metrics for the first quarter ending March 31, 2021.

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.

Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, "Our first quarter operating metrics reflects strong growth momentum, new opportunities from easing government restrictions, and successful execution of our transition strategy.  We fulfilled our earnout commitments for 2019 and 2020, while continuing to drive the growth of our online business. Our online business contributed 67.5% of our total revenues last year, and we expect it to comprise an even greater portion of our business this year. With our CHEERS e-Mall operations now independently operated, we are pushing forward our evolution from an offline production company into a content-driven internet company. Premium content is a core part of this strategy, and we launched a new show and several new livestreaming programs for our CHEERS e-Mall during the quarter. Going forward, we are confident that our continued transition, investment in supporting technologies, and production of premium content will position us to capitalize on the growth trend for the content-driven e-commerce industry."

1. Glory Star defines this metric as the total number of downloads of the CHEERS Video Application as of the end of the period.
2. Glory Star defines daily active users, or DAUs, as a user who has logged in or access Glory Star's online video content and/or its e-commerce platform using the CHEERS Video Application, whether on a mobile phone or tablet. Glory Star calculates DAUs using internal company data based on the activity of the user account and as adjusted to remove "duplicate" accounts.
3. Glory Star defines gross merchandise value, or GMV, as the volume of merchandise sold through its CHEERS e-Mall platform at the end of the period.

About Glory Star New Media Group Holdings Limited

Glory Star New Media Group Holdings Limited is a leading digital media platform and content-driven e-commerce company in China. Glory Star's 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 Company's large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking states include, but are not limited to, the Company's ability to develop its online retail and SaaS industry value chains, expand its business relationship with existing clients and continue its business growth trajectory.  These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; and a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

Contacts
Glory Star New Media Group Holdings Limited
Yida Ye
Email: yeyida@yaoshixinghui.com

ICR LLC.
Robin Yang
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com

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SOURCE Glory Star New Media Group Holdings Limited

FAQ

What are the key highlights from Glory Star's Q1 2021 report?

In Q1 2021, Glory Star reported a 91.6% increase in CHEERS Video Application downloads, 73.2% growth in daily active users, and a 963.2% rise in gross merchandise value to RMB432 million.

How did Glory Star perform in fulfilling its earnout targets?

Glory Star successfully fulfilled its earnout targets for fiscal years 2019 and 2020 as per the Share Exchange Agreement.

What is the outlook for Glory Star's online business?

The online business constituted 67.5% of Glory Star's total revenues last year and is expected to grow as the company transitions to a content-driven internet company.

What is the stock symbol for Glory Star New Media Group?

The stock symbol for Glory Star New Media Group Holdings Limited is GSMG.