CHEERS e-Mall GMV Exceeds 370% YoY to Reach RMB141 Million for 11.11 Shopping Festival

Rhea-AI Summary

Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) reported significant growth during the 2020 11.11 Shopping Festival, with a 370% increase in gross merchandise value (GMV), reaching RMB141.0 million. The CHEERS e-Mall saw over 56,100 orders and daily active users surpassed 7 million. A new collaboration with Taobao and Tmall broadened product offerings, benefiting 150 million users. Notably, sales in third-tier cities accounted for over 51% of total GMV, and female users represented over 57% of active users, particularly driving sales in beauty and apparel.

Positive

• 370% increase in gross merchandise value (GMV) to RMB141.0 million.
• Daily active users exceeded 7 million.
• Collaboration with Taobao and Tmall enhanced product offerings.
• Sales from third-tier cities exceeded 51% of total GMV.
• Female users represented over 57% of active users.

Negative

• None.

BEIJING, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) (“Glory Star” or the “Company”), a leading mobile and online digital media and entertainment company in China, today announced that the Company achieved strong results during the 2020 11.11 Shopping Festival (the “Shopping Festival”). During the Shopping Festival, the gross merchandise value (“GMV”) of the Company’s CHEERS e-Mall online e-commerce platform grew by 370% as compared to the same period in 2019 to RMB141.0 million, order volume increased to 56,100, and daily active users (“DAUs”) exceeded 7 million.

Representing an important change from previous years, CHEERS e-Mall decided to cooperate with Taobao and Tmall for the first time during this year’s Shopping Festival. As part of this collaboration, CHEERS users were able to purchase a large number of first-rate goods from both Taobao and Tmall on CHEERS e-Mall using coupons and rebate rewards specifically designed for CHEERS users. During the Shopping Festival, more than 150 million Cheers users benefited from this cooperation, obtaining access to a wider selection of quality goods at affordable prices from around the globe.

Highlights From the 2020 11.11 Shopping Festival

• The number of SKUs on CHEERS e-Mall exceeded 24,000 and included several renowned and high-quality domestic and foreign brands, including Estee Lauder, Givenchy, SK-II, La Mer, Apple, Huawei, TCL, Haier, and more.
• According to data from Glory Star, the provinces of Shandong, Guangdong, Hebei, Henan, Sichuan, and Jiangsu were the top six provinces in terms of transaction volume. Meanwhile, as a percentage of total GMV, GMV generated in third-tier cities and below exceeded 51.0%.
• According to Glory Star’s data, female users accounted for more than 57.0% of total active users and became the primary consumer group, which led to higher sales in such categories as beauty and apparel, fashion goods, mobile phones, and home appliances.
• As of midnight on November 11, 2020, sales from commodity investments in gold previously launched in September 2020 reached RMB4.35 million.
• Sales from 3C products, such as Apple’s iPhone 12 series and Huawei’s Mate 40 series, household appliance brands, such as Sony, Toshiba, Samsung, Philips, TCL, and Haier, and cosmetics brands, such as Estee Lauder and SK-II, all increased significantly as compared to same period of 2019.

Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, said, “We executed several new initiatives to achieve terrific results during this year’s 2020 11.11 Shopping Festival. In light of these successes, we will continue to pursue more innovative cooperation models, unlock the potential of new content-based consumption scenarios, and provide our users with more high-quality and convenient goods and services at the most competitive prices. Meanwhile, we also aim to better meet the aspirations of our users and customers for a better life, while further promoting a consumption upgrade throughout the broader society.”

About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a leading mobile entertainment operator 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. 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; and other factors listed in the Company’s Annual Report on Form 10-K for the year ending December 31, 2019 and in other filings made by the Company with the Securities and Exchange Commission from time to time. 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.
Sharon Zhou
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com

FAQ

What were the sales results for Glory Star during the 2020 11.11 Shopping Festival?

During the 2020 11.11 Shopping Festival, Glory Star reported a 370% increase in GMV, reaching RMB141.0 million.

How many daily active users did Glory Star's CHEERS e-Mall have during the shopping festival?

The CHEERS e-Mall had over 7 million daily active users during the 2020 11.11 Shopping Festival.

What impact did the collaboration with Taobao and Tmall have on Glory Star's sales?

The collaboration allowed CHEERS users to access a wider selection of quality goods, benefiting over 150 million users.

What demographic accounted for the majority of Glory Star's active users during the shopping festival?

Female users accounted for more than 57% of total active users during the 2020 11.11 Shopping Festival.

How did sales from third-tier cities perform for Glory Star during the Shopping Festival?

Sales from third-tier cities and below exceeded 51% of the total GMV during the 2020 11.11 Shopping Festival.