Glory Star New Media Group Holdings Limited (NASDAQ: GSMG, GSMGW)
(“Glory Star” or the “Company”), a leading mobile and online
digital media and entertainment company in China, today released a
letter to shareholders from Mr. Bing Zhang, the Company's Chairman
and Chief Executive Officer. In the letter, Mr. Zhang provided an
overview of the Glory Star’s progress in 2020 and outlined the
Company’s future growth strategies. The original letter was written
in Mandarin Chinese and can be accessed on the Company’s investor
relations website at http://ir.gsmg.co/. The following excerpts are
English language translations of key messages from the letter to
shareholders.
To Shareholders, Colleagues, and
Business Partners,As this is my first letter to you as
Chairman of Glory Star, I would like to take this opportunity to
provide you with an overview of our progress in 2020 to date as
well as our vision for the future. I would also like to thank all
of our colleagues, shareholders, and business partners for their
unwavering support, particularly during this challenging time. We
are deeply serious about the trust placed in us by all parties and
consider it an honor to move towards a common vision of the future
together. In times like these, we cannot help but be reminded about
what really matters, our family, our friends, and our health.
Since our successful listing on the NASDAQ stock
market on February 19, 2020, we have sustained our remarkable
growth trajectory, which continues to be driven by China’s rapid
digitization progress as well as its social and economic
developments. Now, after three years of operations, we have built a
digital entertainment ecosystem that offers premium content,
interactive live streaming, supply chain services, big data
analysis, smart search services, and recommendation services. These
services have helped our CHEERS app to not only attract over 100
million users nationwide, but also form partnerships with hundreds
of established brands and service providers. In the 2020 China
Content E-commerce Industry Overview Report by iResearch, Glory
Star was named one of China's pioneers for the proprietary
professionally generated video content e-commerce sector, the
report also ranked us as number two in the market in terms of sales
volume, which once again demonstrated our industry-leading
position.
So far, in 2020, the outbreak of COVID-19 has
presented each and every one of us with unprecedented challenges.
Additionally, as the pandemic swept the globe, the world economy
was also severely disrupted. These challenges and the resulting
uncertainties will undoubtedly have a profound impact on the future
economic developments of both China and the rest of the world.
However, we believe that behind every adversity lies an
opportunity, and as the outbreak continues to be brought under
control in China at a steady pace, we are all beginning to return
to our normal ways of life while the economy gradually recovers.
Moreover, as a result of the travel restrictions and quarantine
measures, we have also accelerated the pace of our digital
transformation.
Despite the challenges from the outbreak of
COVID-19 in the first half of 2020, our business lines maintained
their solid growth trajectory. As of June 30, 2020, downloads of
our CHEERS App had exceeded 121.0 million while the average daily
active users for CHEERS App had reached 4.9 million. In the first
half of 2020, our video content generated over 17.1 billion views
online. We also delivered strong financial results in the first
half of 2020 as our total revenues reached $29.4 million and our
net income attributable to ordinary shareholders increased to $12.0
million. Gross Merchandise Value in the six months ended June 30,
2020, was approximately $20.0 million. Based on our results in the
first half of the year, we remain fully confident in our ability to
continue delivering robust financial and operating metrics for the
remainder of 2020.
Looking beyond 2020, our goal is to grow our
CHEERS App user base to 800 million users. As such, we will remain
committed to our strategy of 1) fueling our e-commerce initiative
with premium content, and 2) strengthening the capabilities of our
CHEERS App and e-Mall marketplace to serve more of those consumers
who have the desire to achieve a better lifestyle. Over the past
year, Glory Star has also continuously introduced innovative
services and created new business models, including the CHEERS
video series, original short-form videos, e-commerce with PGC live
streaming, online game portfolios, and product review programs.
These content offerings not only enable consumers to experience a
better lifestyle, but have also helped to fuel our business
expansion and will sustain our rapid growth trajectory for years to
come.
In the era of the fast-evolving internet, we
believe that only those solutions capable of creating real value
for customers will be able to stand the test of time. At Glory
Star, we consider the attractiveness of our value propositions to
be the core driver of our business success. Going forward, we will
continue to experiment and drive innovation in order to better
position ourselves at the forefront of the industry and thus
generate increasing value for our users, partners, and shareholders
in turn.
Bing ZhangChairman and Chief Executive Officer
of Glory Star
About Glory Star New Media Group
Holdings LimitedGlory 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 StatementCertain
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.
ContactsGlory Star New Media
Group Holdings LimitedYida YeEmail:
yeyida@yaoshixinghui.com
ICR Inc.Jack WangTel: +1 (646) 308-0546Email:
gsnm@icrinc.com
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