Glory Star Acquires Business License and Permit for Cross-Border E-Commerce, Plans to Expand CHEERS e-Mall Platform Services
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 received its business license and permit to operate a cross-border e-commerce business. The Company has received approvals from the Ministry of Commerce of the People's Republic of China (the "PRC Ministry of Commerce") to engage in foreign trade operations, and from the General Administration of Customs of the People's Republic of China (the "PRC Customs") to be a consignee of imported goods and consignor of exported goods. Glory Star plans to utilize its new business license and permit to develop a new cross-border e-commerce business and to further expand and promote its CHEERS e-Mall platform services to importers, exporters, and businesses outside of China.
Glory Star's expansion into cross-border e-commerce is aligned with government objectives. During the Executive Meetings of the State Council chaired by Chinese Premier Li Keqiang on June 22, 2021, state councilors reached an agreement to accelerate the development of new forms and models of foreign trade as well as to improve the supporting policy system for the development of cross-border e-commerce in China.
According to data released by the PRC Customs, the total gross merchandise value ("GMV") of cross-border e-commerce in China in 2020 increased by 31.1% year over year to RMB1.69 trillion. At the China E-Commerce Conference on September 3, 2021, Mr. Ren Hongbin, Deputy Administer of the PRC Ministry of Commerce, further stated that the business scale of cross-border e-commerce in China had increased exponentially by about 10 times in the past five years.
Mr. Bing Zhang, Chairman and Chief Executive Officer of Glory Star, commented, "As a leading content-driven e-commerce company in China, Glory Star remains committed to the premium lifestyle segment. By developing our cross-border e-commerce business through CHEERS e-Mall, we plan to also accelerate our revenue growth. CHEERS e-Mall will be able to leverage its multilateral advantages in global product sourcing, personalized advertising, smart search, word-of-mouth marketing, and cross-border transactions via CHEERS Payment alongside our resources in international and domestic brands, supply chain, sales channels, and technological expertise to better empower its platform business owners. With the development of our cross-border e-commerce business, we are confident that CHEERS e-Mall will continue to be a key growth driver for Glory Star. We also believe that this initiative will trigger a flywheel effect across all of our business development efforts and thus further enable us to sustain our leading position in the competitive world of digital business for the long run."
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. 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 occurrence of any event, change or other circumstances that could affect the Company's ability in developing a new cross-border e-commerce business; the ability of the Company to successfully expand and promote its CHEERS e-Mall platform services; costs related to the proposed development of the Company's proposed cross-border e-commerce business; costs related to the expansion and promotion of the Company's CHEERS e-Mall platform services; the possibility that the Company may not succeed in developing a cross-border e-commerce business due to, among other things, changes in the business environment, competition or other economic and policy factors; and the possibility that the proposed cross-border e-commerce business may be adversely affected by other economic, business, and/or competitive factors. 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, including the Company's Annual Report on Form 20-F filed with the SEC on March 29, 2021, 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.