Glory Star Reports First Half Year 2023 Unaudited Financial Results
- Downloads of CHEERS Apps increased by 23%. MAU of CHEERS Video app grew by 9%. MAU of CHEERS e-Mall app increased by 53%. RPR for CHEERS e-Mall was 39%. DTS on CHEERS Video was 51 minutes. Net income was $8.8 million.
- Revenues decreased by 3.57% to $67.4 million.
First Half 2023 Operating Highlights
- Downloads of the CHEERS Apps increased to approximately 395 million as of June 30, 2023, representing an increase of
23% compared to approximately 320 million as of June 30, 2022.
CHEERS Video
- Monthly Active Users ("MAU") of the CHEERS Video app increased to approximately 49.8 million from 45.8 million in the same period of 2022, representing an increase of
9% . - Daily Time Spent ("DTS") on CHEERS Video was approximately 51 minutes.
CHEERS e-Mall
- MAU of the CHEERS e-Mall app increased to approximately 4.6 million from 3.0 million in the same period of 2022, representing an increase of
53% . - Repurchase Rate ("RPR") for CHEERS e-Mall was approximately
39% .
CheerReal
- MAU of the CheerReal app was approximately 1.2 million.
- Number of Digital Art Collections listed on CheerReal platform was 350 units.
First Half 2023 Key Operating Results
The Company monitors the following key metrics to evaluate the growth of its business, measure the effectiveness of its marketing efforts, identify trends affecting its business, and make strategic decisions.
Downloads. We view the number of downloads at the end of a given period as a key indicator of the attractiveness and usability of our CHEERS Apps. As of June 30, 2023, downloads of our CHEERS Video, e-Mall and CheerReal apps in total were approximately 395 million, representing an increase of
MAU. MAU is defined as a user who has logged in or accessed the Company's CHEERS Apps. We calculate MAU using internal company data based on the activity of the user account and as adjusted to remove "duplicate" accounts. MAU is a tool that our management uses to manage their operations. In particular, our management sets targets of MAU and monitors the MAU to see whether to make adjustments as to the promotional activities, advertising campaign, and/or online video contents. For the six months ended June 30, 2023, the average MAU of our CHEERS Video and e-Mall apps were approximately 49.8 million and 4.6 million, growing
RPR. We track RPR to analyze the effectiveness of our marketing as well as customers retention, which is vital to our e-Mall. RPR is calculated as the percentage of our customers who have placed more than one order within a certain period of time. For the 180 days period during the first half of 2023, our CHEERS e-Mall RPR was approximately
DTS. We measure DTS as an additional metric to evaluate the attractiveness of our video content and stickiness of users. The average DTS using our CHEERS Video during first half 2023 was approximately 51 minutes.
First Half 2023 Financial Results
Revenues in the first half year of 2023 were US
Total operating expenses in the first half year of 2023 were US
- Cost of revenues were
US and$16.9 million US for the first half year of 2023 and 2022. The increase in cost of revenues was primarily driven by the increase in production cost. The Company believes higher production cost would improve product contents with higher quality, which would in turn contribute to our reputation in the industry and attract more customers.$14.6 million - Sales and marketing expenses were
US and$38.9 million US for the first half year of 2023 and 2022, mainly due to a decrease in other miscellaneous expenses incurred by sales persons because the Company emphasized cost savings.$42.5 million - General and administrative expenses in the first half year of 2023 increased by
24.9% toUS from$2.3 million US in the same period of 2022, which is mainly attributable to an increase in salary and welfare expenses because of an increase in headcount in our administrative department.$1.8 million - Research and development expenses were
US and$0.6 million US for the first half year of 2023 and 2022, respectively.$0.5 million
Income from operations in the first half year of 2023 was US
Net income were
Basic and diluted earnings per share in the first half year of 2023 were US
Net cash provided by operating activities in the first half year of 2023 was US
As of June 30, 2023, the Company had cash and cash equivalents of US
About Glory Star
As a preeminent provider of next-generation mobile internet infrastructure services in
Glory Star's portfolio includes a wide range of products and services, such as Polaris Intelligent Cloud, CHEERS Telepathy, CHEERS Open Platform, CHEERS Video, CHEERS e-Mall, CheerReal, CheerCar, CheerChat, CHEERS Fresh Group-Buying E-commerce Platform, Digital Innovation Research Institute, CHEERS Livestreaming, variety show series, IP short video matrix, and more. These offerings provide diverse application scenarios that seamlessly blend "online/offline" and "virtual/reality" elements.
With "CHEERS+" at the core of Glory Star's ecosystem, the Company is committed to consolidating and strengthening its core competitiveness, and achieving long-term sustainable and scalable growth.
For more information, please visit http://ir.gsmg.co/.
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. 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 our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the occurrence of any event, change or other circumstances that could affect the Company's ability to continue successful development and launch of its metaverse experience centers; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment and technological developments, competition, changes in regulation, or other economic and policy factors; disruptions or other business interruptions that may affect the operations of our products and services, the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors; other factors, risks and uncertainties set forth in documents filed by the Company with the Securities and Exchange Commission from time to time, including the Company's latest Annual Report on Form 20-F filed with the SEC on March 22, 2023, as amended. 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.
For investor and media inquiries, please contact:
Wealth Financial Services LLC
Connie Kang, Partner
Email: ckang@wealthfsllc.com
Tel: +86 1381 185 7742 (CN)
GLORY STAR NEW MEDIA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 152,441 | $ | 70,482 | ||||
Accounts receivable, net | 67,159 | 98,034 | ||||||
Prepayment and other current assets | 27,378 | 15,329 | ||||||
Total current assets | 246,978 | 183,845 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 115 | 160 | ||||||
Intangible assets, net | 18,026 | 20,297 | ||||||
Deferred tax assets | 64 | 103 | ||||||
Unamortized produced content, net | 528 | 807 | ||||||
Right-of-use assets | 593 | 750 | ||||||
Prepayment and other non-current assets, net | - | 1 | ||||||
Total non-current assets | 19,326 | 22,118 | ||||||
TOTAL ASSETS | $ | 266,304 | $ | 205,963 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term bank loans | $ | 2,856 | $ | 4,421 | ||||
Accounts payable | 4,992 | 6,405 | ||||||
Advances from customers | 126 | 147 | ||||||
Due to a related party | 1,000 | - | ||||||
Accrued liabilities and other payables | 2,203 | 2,632 | ||||||
Other taxes payable | 21,703 | 19,090 | ||||||
Lease liabilities current | 368 | 208 | ||||||
Total current liabilities | 33,248 | 32,903 | ||||||
Lease liabilities non-current | 191 | 471 | ||||||
Warrant liability | 7 | 86 | ||||||
Total non-current liabilities | 198 | 557 | ||||||
TOTAL LIABILITIES | $ | 33,446 | $ | 33,460 | ||||
Equity | ||||||||
Preferred shares (par value of | $ | - | $ | - | ||||
Ordinary shares (par value of | $ | 9 | $ | 7 | ||||
Additional paid-in capital | 87,470 | 27,009 | ||||||
Statutory reserve | 1,411 | 1,411 | ||||||
Retained earnings | 159,432 | 150,685 | ||||||
Accumulated other comprehensive loss | (15,539) | (6,684) | ||||||
TOTAL GLORY STAR NEW MEDIA GROUP HOLDINGS LIMITED | 232,783 | 172,428 | ||||||
Non-controlling interest | 75 | 75 | ||||||
TOTAL EQUITY | 232,858 | 172,503 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 266,304 | $ | 205,963 |
GLORY STAR NEW MEDIA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME (In | ||||||||
For the Six Months | ||||||||
2023 | 2022 | |||||||
Revenues | $ | 67,435 | $ | 69,933 | ||||
Operating expenses: | ||||||||
Cost of revenues | (16,946) | (14,580) | ||||||
Selling and marketing | (38,870) | (42,502) | ||||||
General and administrative | (2,266) | (1,814) | ||||||
Research and development | (641) | (532) | ||||||
Total operating expenses | (58,723) | (59,428) | ||||||
Income from operations | 8,712 | 10,505 | ||||||
Other (expenses) income: | ||||||||
Interest income (expense), net | 32 | (60) | ||||||
Change in fair value of warrant liability | 79 | 2 | ||||||
Other income, net | 13 | 144 | ||||||
Total other income | 124 | 86 | ||||||
Income before income tax | 8,836 | 10,591 | ||||||
Income tax (expenses) benefits | (37) | 46 | ||||||
Net income | 8,799 | 10,637 | ||||||
Less: net gain (loss) attributable to non-controlling interest | 52 | (170) | ||||||
Net income attributable to Glory Star New Media Group Holdings | $ | 8,747 | $ | 10,807 | ||||
Other comprehensive loss | ||||||||
Unrealized foreign currency translation loss | (8,907) | (7,620) | ||||||
Comprehensive (loss) income | (108) | 3,017 | ||||||
Less: comprehensive loss attributable to non-controlling interests | - | (360) | ||||||
Comprehensive (loss) income attributable to Glory Star New Media | $ | (108) | $ | 3,337 | ||||
Earnings per ordinary share | ||||||||
Basic and Diluted | $ | 0.12 | $ | 0.16 | ||||
Weighted average shares used in calculating earnings per ordinary share | ||||||||
Basic and Diluted | 75,075,035 | 68,123,330 |
GLORY STAR NEW MEDIA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In
| ||||||||
For the Six Months | ||||||||
2023 | 2022 | |||||||
Net cash provided by (used in) operating activities | 27,179 | (30,627) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property, plant and equipment | (4) | (28) | ||||||
Loans made to a third party | (58) | - | ||||||
Prepayments for acquisition of intangible assets | - | (355) | ||||||
Net cash used in investing activities | (62) | (383) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from issuance of ordinary shares in connection with a private placement | 60,000 | - | ||||||
Proceeds from bank loans | 2,598 | 5,398 | ||||||
Repayments of bank loans | (4,041) | (4,473) | ||||||
Payment of loan origination fees | (11) | (83) | ||||||
Borrowings from a related party | 1,000 | - | ||||||
Contribution from shareholders | 463 | - | ||||||
Net cash provided by financing activities | 60,009 | 842 | ||||||
Effect of exchange rate changes | (5,167) | (2,357) | ||||||
Net increase (decrease) in cash and cash equivalents | 81,959 | (32,525) | ||||||
Cash and cash equivalents, at beginning of period | 70,482 | 77,302 | ||||||
Cash and cash equivalents, at end of period | $ | 152,441 | 44,777 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Interests paid | $ | 77 | $ | 136 | ||||
Amortization of right of use assets | $ | 133 | $ | 209 | ||||
Accretion of lease liabilities | $ | 69 | $ | 24 | ||||
Change in fair value of warrant liabilities | $ | (79) | $ | (2) |
View original content:https://www.prnewswire.com/news-releases/glory-star-reports-first-half-year-2023-unaudited-financial-results-301897741.html
SOURCE Glory Star New Media Group Holdings Limited