Pull up Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) right this second. This morning, the company released a game-changing

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Just In: Breaking (GSMG) News Releases This Morning Could Turn Major Catalysts

July 14th

SCF Members,

Pull up Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) right this second.

This morning, the company released 2 potential game-changing press releases. Here they are:

#1 New GSMG Potential Catalyst

Glory Star New Media Holdings Outlines Vision for Future in Interview with Chief Entertainment Officer Magazine

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’s Chief Executive Officer, Mr. Bing Zhang, was interviewed by Chief Entertainment Officer Magazine on July 13, 2020. Chief Entertainment Officer Magazine is a social media group focused on covering online entertainment in China. The full transcript of the interview can be accessed on the Company’s investor relations website at ir.gsmg.co/. The following excerpts are English language translations of key highlights from the interview.

Integrating E-Commerce into Live Streaming Content

Mr. Zhang commented, "The premium content on our CHEERS App plays an essential role in our integration of live streaming services with e-commerce services. This premium content can take the form of videos, short-form videos, games, and interactive live streaming. Our professionally curated lifestyle content has enabled us to attract a healthy following of users in pursuit of increasingly modern lifestyles. Our extensive user base of this targeted demographic has made us an ideal partner for premium lifestyle brands and businesses in China. As we continue to leverage the quality of our professionally generated content as well as our market-leading content production capabilities, we will also continue to expand our business partnerships and user base.

Meanwhile, we have adopted a comprehensive brand selection process to ensure the quality of all products on our platform, evaluate each brand’s track record, and maintain robust customer support capabilities. To date, we have integrated cosmetic, personal care, and food products as well as a wide range of digital products into our live streaming & e-commerce model."

A Unique Live Streaming & E-Commerce Business Model

Mr. Zhang highlighted, "The uniqueness of our business model is a result of our strategic focus on our platform's products and users. As of now, we have established distribution agreements with 450 brands and are on track to partner with up to 1,000 brands by the end of 2020. Our partner brands now offer more than 19,000 SKUs across nine different categories on our platform for our users to access while enjoying our curated live streaming content.

Total CHEERS App downloads exceeded 106.5Mn as of April 30, 2020, while CHEERS App average DAUs reached 4.1Mn during the first quarter of 2020. In addition, our products, which are both cost-effective and of a premium quality, as well as our content production expertise have helped to ensure the quality of our user base. During the 6.18 e-commerce shopping festival, for example, half of the paying users on CHEERS e-Mall came from first- and second-tier cities, which is a group of consumers generally characterized by above-average purchasing power.

In order to fully utilize our massive base of highly-targeted users and encourage higher user engagement, we have launched four new interactive features on our CHEERS e-Mall platform. Going forward, we plan to continue introducing more innovative ways to foster interactions between users and live streaming hosts on our platform. Such user engagement will enable us to both convert and monetize our user traffic. Ultimately, our goal is to create a platform through which all parties can host live streaming sessions and market any product during these sessions at the same time."

Glory Star’s Future Plans for Its Live Streaming & E-Commerce Model

Mr. Zhang added, "In the current live streaming market, most brands still rely on a low pricing strategy to attract consumers and facilitate transactions. As a consequence, businesses are not able to generate any profit from the sale of products through live streaming content. We believe that live streaming platforms will have to shift their focus from a low pricing strategy to a strategy based on quality products and services in order to ensure their business model sustainability and attract more users going forward.

Our live streaming content mainly consists of professionally generated content, which has allowed us to better control and standardize our platform’s content quality. Looking ahead, we plan to utilize our live streaming tools in order to help our users create and share their own content, socialize within their individual networks, and integrate their content with products on our CHEERS App to earn rewards. In fact, one of our key strategies for the second half of 2020 is to create a mutually beneficial environment for our users, our partner brands, and our platform."

#2 New GSMG Potential Catalyst

Glory Star New Media Group Holdings Limited Announces Hiring of Capital Market Veteran As its Advisor

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, is pleased to announce that Glory Star has engaged Mr. Steven Antebi, a U.S. capital market veteran, as its adviser. Mr. Antebi is presently the manager of Maple Capital Management, a position he has held from 1993 to the present. Maple invests in Global Equities and structured debt. Mr. Antebi is currently the chairman of the board and co-founder of Crunch Digital and the Royalty Review Counsel. Both companies are leaders in the field of royalty accounting and intellectual property rights management, with particular emphasis on the music industry. Prior to that, Mr. Antebi served for twenty years in various senior positions at Bear Stearns and Company, including institutional sales, trading the firm’s capital in the over the counter market, syndicate distribution, and outside investment banking.

Read The Full Article Here.

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Established in November 2016, Glory Star has pioneered a unique, new business model integrating e-commerce services with premium video content.

The Company has become a leading online digital media and entertainment company in China, with a strong track record both in terms of viewership and production capabilities.

In 2017, the company launched their signature lifestyle video series, Cheers. In 2018, they launched the CHEERS APP to integrate e-commerce services with professionally-produced content.

Another Potential Catalyst - Last Week's Major PR

Glory Star New Media Holdings Limited Announces Partnership with Nanfang Food Basket to Expand CHEERS e-Mall Offerings and Support China’s Agricultural Industry

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 it has established a strategic cooperation agreement with Nanfang Food Basket, an integrated sales platform for agricultural products in China. Nanfang Food Basket is operated by Nanfang Media Group, which has established a top brand presence in China with a service coverage of roughly 200Mn people. The partnership between the Company and Nanfang Food Basket will focus on leveraging the substantial user traffic and dynamic media capabilities of the Company’s CHEERS e-Mall platform to improve the marketing and sales performances of Nanfang Food Basket for its agricultural products, which include fresh fruits, vegetables, and dairy products. In addition, CHEERS e-Mall users in all parts of China will still be able to enjoy a delivery time of just a few days for these agricultural products, despite them being sourced from China’s more rural and poverty-stricken areas.

...

Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star, commented, “We are pleased to announce our partnership with Nanfang Food Basket and are excited about its long-term potential. This collaboration not only marks our entrance into China’s agricultural industry, but also showcases our commitment to empowering China’s agricultural industry players through supply chain digitization. By bringing Nanfang Food Basket’s agricultural products onto our CHEERS e-Mall platform, we will enhance our partner’s sales and marketing efforts while simultaneously augmenting our product offerings, user engagement, and platform stickiness to create a truly W-W situation. Importantly, Chinese farmers, who have experienced significant difficulties as a result of the CV-19 outbreak, will also benefit from this exchange as we provide them with more effective sales and marketing channels for their agricultural products. Looking ahead, we remain confident that our expansion of e-commerce offerings, cooperation with agricultural industry players, and unique combination of media and e-commerce will continue to fuel our expansion as we advance through the rest of 2020 and beyond.”

Read The Full Article Here.

Another Potential Catalyst - Major GSMG News From May

CHEERS e-Mall GMV Growth Exceeds 4,000% YoY during the 6.18 E-Commerce Shopping Festival in China

BEIJING, June 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 Gross Merchandise Value (GMV) for its CHEERS e-Mall online e-commerce platform grew by 4,009% year over year to RMB50.6 million and order volume increased by more than 780% year over year in 2020 during the 6.18 e-commerce shopping festival, a highly popular mid-year e-commerce shopping bonanza occurring annually in China.

Read The Full Article Here.

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Recently, the company announced a content update on its partnership with JD.com that they believe will bring them millions in revenue:

GSMG Glory Star New Media Group Holdings, Anticipates a Multi-Mn Dollar Revenue Stream with Industry Leader JD.com for Premium Entertainment Services in China

GSMG partners with JD.com Inc. (“JD”), one of China’s largest e-commerce platforms. As part of the partnership with GSMG, the company will develop solutions to help JD fulfill their customers’ needs for premium lifestyle-oriented online content, in the forms of text and short-form videos. The content production for JD.com is a great addition to Glory Star’s premium digital client lists which includes Tencent, Alibaba, Weibo, Iqiyi as well as traditional consumer brand clients such as Starbucks, Pantene, Louis Vuitton, Samsung and Sony.

JD.com is a leading technology driven e-commerce company transforming to become the leading supply chain-based technology and service provider. JD.com is the largest retailer in China, a member of the NASDAQ100 and a Fortune Global 500 company.

To further the high earnings power here, GSMG management remains committed to its successful strategy of integrating premium lifestyle content with innovative e-commerce offerings to benefit from the growth of consumerism in China.

This Partnership Could Be A True Game-Changer!

While the outbreak of CV-19 has gradually been brought under control, we are excited to resume our content production in May as part of our partnerships with all of our clients,” commented Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star. “In the past three years, we have leveraged our industry-leading content production and content marketing capabilities to serve consumer brands both at home and abroad. Through our collaboration, our premium content will help JD better serve its massive customer base by establishing a complete content service ecosystem. As we actively explore additional collaboration opp's with JD for a long-term partnership, we are confident that our partnership will serve as an important driver for our growth and a success case for us to forge more strategic partnerships going forward.

Prior to this announcement, the company announced their 2019 financials in what looks to be a press release that has flown under-the-radar to this point.

Huge Potential GSMG Catalyst: Operating + Financial Update

Take a look at some of the operating and financial highlights for yourself:

  • Downloads of the CHEERS App exceeded 85 million for the year ended December 31, 2019, compared to 12 million for the year ended December 31, 2018.
  • Average daily active users (“DAUs”) of the CHEERS App increased to 1.9 million from 0.4 million in the full year of 2018.
  • Glory Star’s e-Mall sold over 13,180 Stock Keeping Units (“SKUs”), recording over RMB133.76 million (US$19.36Mn) in gross merchandise value (“GMV”) through its CHEERS App in the same period.
  • Revenues increased by 16.7% to US$65.8Mn from US$56.4Mn in the full year of 2018.
  • Income from operations increased by 94.4% to US$26.8Mn from US$13.8Mn in the full year of 2018.
  • Operating margin expanded to 40.8% from 24.5% in the full year of 2018.
  • Net income attributable to Glory Star’s shareholders increased by 94.5% to US$26.3Mn from US$13.5Mn in the full year of 2018.
  • Net margin expanded to 40.0% from 24.0% in the full year of 2018.

These robust financial and operating results were driven by the GSMG innovative business model, increasingly competitive value propositions, and ability to capitalize on the growing market opp. GSMG remained committed to bolstering production capabilities for tailored content and increasing collaborations with experienced producers to develop popular network dramas.

Notably, by leveraging professionally-generated content, GSMG has attracted an increasing number of users to its CHEERS App, as evidenced by the sevenfold increase in CHEERS app downloads on a year-over-year basis and the 365.9% growth in DAUs for 2019. As a result of such improvements, GSMG significantly increased the GMV for its CHEERS App during the full year of 2019.

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Even with CV-19 pandemic, GSMG's CHEERS APP was off to a hot start in 2020. Here are more operating highlights from Q1 2020:

First Quarter 2020 Operating Highlights

  • Downloads of the CHEERS App exceeded 100.5Mn as of March 31, 2020, compared to 17.2Mn as of March 31, 2019.
  • Average daily active users (“DAUs”) of the CHEERS App increased to 4.1Mn from 0.5Mn in the same period of 2019.
  • The Company’s e-Mall carried over 9,602 Stock Keeping Units (“SKUs”) as of March 31, 2020, and recorded over RMB40.6 million (US$5.8Mn) in gross merchandise value (“GMV”) through its CHEERS App in the first quarter of 2020.

Over 100Mn Downloads! Over 4.1Mn Daily Active Users!

Can you say GSMG is trending in the right direction? If you don't think so, just take a look at its 2-month chart:

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Since the middle of May, GSMG has been on a steady grind from a low on May 13 of $2.27 all the way to a high of $5.00 while settling at $3.79 at close yesterday.

That said, it's interesting to note that GSMG has been holding its gains as of recent.

Could this be signalling trader confidence that GSMG has the potential to keep posting vertical growth in the short-term?

Plus, with Yahoo Finance reporting GSMG to have roughly 14.99Mn shares in its float, the slightest bit of positive corporate news could be enough to continue this recent vertical growth surge.

Between the company's strong partnership with JD.com and its 2019 operating and financial highlights, plus a strong operating start in Q1 2020, GSMG may be currently undervalued at current levels.

Another Potential GSMG Catalyst - Working With Multiple International Luxury Brands

Glory Star New Media Group Holdings Limited Completes Content Production Programs for Multiple International Luxury Brands

BEIJING, June 09, 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 it has successfully completed content production programs for multiple international luxury brands, including Fendi, Prada, Gucci, and Burberry.

According to the Luxury Goods Worldwide Market Study, Fall-Winter 2019 report produced by Bain & Company, the worldwide demand for luxury goods continued to grow in 2019, which resulted in a global industry worth approximately €281Bn as of the end of the year. Currently, China has begun to lead the way toward recovery from the CV-19 pandemic, and Chinese consumers are set to cement their status as crucial growth drivers for the industry going forward. According to Bain & Company’s Luxury Study 2020 Spring Update released in May 2020, Chinese consumers are expected to account for approximately 50% of the total global market for luxury goods in 2025 compared to 35% in 2019. Based on data from data for the 2019 McKinsey China Luxury Report, the growth of China’s luxury spending will be primarily driven by a significant uptick of upper-middle-class households. The total number of China’s upper-middle-class households is expected to reach 350Mn by 2025 with a compound annual growth rate of 28% from 2018 to 2025.

As part of Glory Star’s content production strategies with international luxury brands, Glory Star will leverage its award-winning lifestyle content production services and social media platforms to help expand the online presence of these brands in China. Glory Star will also utilize the leading traffic conversion capabilities and extensive content library of its CHEERS app to enable luxury brands to better penetrate China’s emerging luxury market more effectively.

Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star, commented, “We are excited to work with such internationally renowned luxury brands. These working relationships will allow us to further solidify our leadership as a premium content provider in the high-end segment of the luxury e-commerce market. Meanwhile, our access to world-class brands and expanding library of custom content will further boost user retention, user engagement, and user stickiness on our platform. Looking ahead, we are confident that these working relationships will make meaningful contributions to our business expansion efforts as we advance through the rest of 2020 and beyond.

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Drop what you're doing. Get GSMG on your radar right now before it's too late.

  • #1 Potential Catalyst: This is a NASDAQ stock.
  • #2 Potential Catalyst: The company is part of a red-hot sector with major upside potential.
  • #3 Potential Catalyst: This company has partnered with one of China's biggest e-commerce platforms.
  • #4 Potential Catalyst: The company has major revenue potential as 2019 was a record year.
  • #5 Potential Catalyst: The stock's low float share structure.

If there are any more updates, I'll get them out to you quickly today.

To Your Trading Success,

Axel Adams

Editor, SCF


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(Always Remember The Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)​


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