BEIJING, May 6, 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 announced that it has separated the operation of its CHEERS e-Mall platform from its CHEERS video application and will operate CHEERS e-Mall independently going forward. In addition, the Company plans to invest more resources to promote the brand influence of both its CHEERS video application and CHEERS e-Mall platform, and to further increase the Company's overall market share in media and entertainment industry.
While the CHEERS video application has maintained high business growth for Glory Star, the CHEERS e-Mall platform has also expanded the Company's presence in video content-driven e-commerce industry and has become another growth driver for the Company. With the independent operation of CHEERS e-Mall, Glory Star will look to deploy more resources to its e-commerce business, expand into the cross-border e-commerce market, and achieve greater business autonomy for its CHEERS e-Mall. Glory Star believes that the independent operation of CHEERS e-Mall platform will allow CHEERS e-Mall to be better integrated with other applications, leading to improved business performances and growth.
Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, "The independent operations of our CHEERS e-Mall application and CHEERS video application will complement each other well. By continuously improving the quality of our content ecosystem, which includes short-form videos, interactive live streaming, audio, and other form of videos, our CHEERS video application will thrive. As such, we will continue to make the content of CHEERS video available to all users while simultaneously constructing a content ecology with Professional User Generated Content ("PUGC") and User Generated Content ("UGC"). On the other hand, we will continue to upgrade CHEERS e-Mall application through improving our supply chain, logistics, big data, mobile payments, and AI-empowered customer service on the platform. As we operate CHEERS e-Mall independently through a new organizational structure, we are confident that CHEERS e-Mall will experience significant improvements in terms of user quantity, consumption frequency, supply chain, logistics, and more, and its geographic coverage will also expand."
"Our customers have welcomed CHEERS e-Mall since its initial launch in April 2019. In fact, CHEERS e-Mall's sales have been increasing at a rate much faster than our original expectations. With the maturation of our private label brand "Cheers Select," improvement of the supply chain through SAAS service providers, launch of the third-party membership services, and expansion of our collaborations with other third-party platforms, such as Taobao, JD.com, and more, we have been able to provide our customers with a better shopping experience and grow the number of SKUs on CHEERS e-Mall to more than a hundred million. In 2020, the GMV of CHEERS e-Mall was more than US$132 million, representing an increase of 581% year over year. Such a rapid pace of growth and monetization capability improvements were in line with our strategic positioning in the content driven e-commerce industry."
"With our accumulated capabilities in content, brand awareness, technology, operations, and capital, we believe we have become one of the top players in the video content driven e-commerce industry over the years. Going forward, we expect the independent operation of CHEERS e-Mall to accelerate our growth and enhance our industry leadership."
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; 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.
Sharon Zhou
Tel: +1 (646) 308-0546
Email: gsnm@icrinc.com
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