BEIJING, Aug. 10,
2023 /PRNewswire/ -- Glory Star New Media Group
Holdings Limited (NASDAQ: GSMG) ("Glory Star", the "Company" or "we"), a
leading digital media platform and content-driven e-commerce
company in China, today announced its unaudited financial
results for the first half year of 2023 ended June 30,
2023.
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 23%
compared to approximately 320 million as of June 30, 2022.
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 9% and 53% respectively as compared to the same
period in 2022. The average MAU of the CheerReal app was
approximately 1.2 million.
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 39%.
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$67.4 million compared to US$69.9
million in the same period of 2022, representing a decrease of
US$2.5 million, or 3.57% from
US$69.9 million for the six months
ended June 30, 2022.
Total operating expenses in the first half year of
2023 were US$58.7 million, compared to US$59.4
million in the same period of 2022.
- Cost of revenues were US$16.9
million and US$14.6 million
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.
- Sales and marketing expenses were US$38.9 million and US$42.5 million 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.
- General and administrative expenses in the first half
year of 2023 increased by 24.9% to US$2.3
million from US$1.8 million 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.
- Research and development expenses were US$0.6 million and US$0.5
million for the first half year of 2023 and 2022,
respectively.
Income from operations in the first half year of
2023 was US$8.7 million, compared to US$10.5
million in the same period of 2022.
Net income were US$8.8
million and US$10.6 million,
respectively, for the six months ended June
30, 2023 and 2022.
Basic and diluted earnings per share in the first
half year of 2023 were US$0.12 and US$0.12,
respectively, compared to US$0.16 and US$0.16,
respectively, in the same period of 2022.
Net cash provided by operating activities in the
first half year of 2023 was US$27.2 million, compared
to net cash used in operating activities of US$30.6 million in the same period of
2022.
As of June 30, 2023, the Company had cash and cash
equivalents of US$152.4 million, compared to US$70.5
million as of December 31, 2022.
About Glory Star
As a preeminent provider of next-generation mobile internet
infrastructure services in China,
Glory Star is dedicated to building
a digital ecosystem that integrates "platforms, applications,
technology, and industry" into a cohesive system, thereby creating
a new, open business environment for web3.0 that leverages AI
technology. The Company is developing a 5G+VR+AR+AI shared universe
space that builds on cutting-edge technologies including
blockchain, cloud computing, extended reality, and digital
twin.
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 U.S. dollars in
thousands, except share and per share data)
|
|
|
|
|
|
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 $0.0001 per share; 2,000,000 authorized;
none issued and outstanding)
|
|
$
|
-
|
|
|
$
|
-
|
|
Ordinary shares (par
value of $0.0001 per share; 200,000,000 shares
authorized as of June 30, 2023 and December 31,2022;
92,317,950
shares and 68,124,402 shares issued and outstanding as
of June 30,
2023 and December 31, 2022, respectively)
|
|
$
|
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
SHAREHOLDERS' EQUITY
|
|
|
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 U.S. dollars
in thousands, except share and per share data)
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
|
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
Limited's shareholders
|
|
$
|
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
Group Holdings Limited's
shareholders
|
|
$
|
(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 U.S. dollars in
thousands)
|
|
|
|
|
|
For the Six
Months
Ended
June 30,
|
|
|
|
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