Glory Star Signs Annual Contract With Iflytek and Receives First Purchase Orders of RMB9.5 Million
BEIJING, Dec. 1, 2020 /PRNewswire/ -- 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 completed the signing of the "Annual Programmatic Advertising Purchase Contract" (the "Contract") with Iflytek Co., Ltd (SSE: 002230) ("Iflytek"), a leading voice recognition software provider and artificial intelligence technology company in China. Pursuant to the Contract, the Company will receive advertising purchase orders from Iflytek for the promotion of Iflytek's brand and products on the Company's Cheers video platform until December 31, 2021.
As of October 31, 2020, the Company has already reached over 150 million downloads of its Cheers video application, with its average daily active users exceeding 7 million. As part of the Contract, the Company will utilize its competitive advantages in quality content distribution, the traffic aggregation capabilities of its Cheers video platform, and other Cheers platform resources to promote Iflytek's brand and products. The Company has received its first advertising purchase orders for RMB9.5 million from Iflytek covering October and November of 2020. To date, the Company has received the first payment of RMB4.5 million from Iflytek pursuant to the Contract. Glory Star plans to continue bolstering its reputation and brand influence as a promoter of intelligent technology services and leveraging its cooperation with Iflytek.
Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, "We are delighted to announce the signing of the advertising cooperation with Iflytek and believe that it signifies a true win-win arrangement. Iflytek will benefit from our expansive distribution network, lifestyle content creation capabilities, and experience in targeting its core demographic. On the other hand, we will be able to access a wider range of users and fuel the growth of our platform's quality user traffic, strengthening the core of our advertising value proposition in turn. In light of the growing interest for our programmatic advertising solutions, we remain confident in our ability to continue expanding our online advertising business throughout the remainder of the year."
About Glory Star New Media Group Holdings Limited
Glory 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 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; 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.