 Beijing, Aug. 03, 2020 GLOBE NEWSWIRE -- Glory Star New Media Group Holdings Limited NASDAQ: GSMG, GSMGW Glory Star or the Company, a leading mobile and online digital media and entertainment company in China, today announced its financial results for the second quarter and half year ended June 30, 2020.Second Quarter and Half Year 2020 Key Metrics Highlights Downloads of the CHEERS App1 exceeded 121.0 million as of June 30, 2020, compared to 35.5 million as of June 30, 2019. Average daily active users DAUs2 of the CHEERS App increased to 4.9 million for the three months ended June 30, 2020 from 1.0 million in the same period of 2019. DAUs of CHEERS App increased to 4.5 million for the six months ended June 30, 2020 from 0.7 million in the same period of 2019. Stock Keeping Units SKUs carried in the Companys e-Mall were 19,984 as of June 30, 2020, compared to 3,000 as of June 30, 2019. Gross Merchandise Value GMV3 in the three month ended June 30, 2020 was over 14.1 million, compared to 1.0 million in the same period of 2019. GMVs in the six months ended June 30, 2020 was approximately 20.0 million, compared to 1.0 million in the same period of 2019.Second Quarter and Half Year 2020 Financial Highlights Total revenues in the second quarter of 2020 increased by 6.3 to 19.7 million as compared to 18.5 million in the same quarter of 2019. For the first half of 2020, total revenues decreased by 8.8 to 29.4 million, compared to 32.2 million in the same period of 2019. Total operating expenses in the second quarter of 2020 decreased by 7.2 to 11.1 million as compared to 11.9 million in the same quarter of 2019. For the first half of 2020, total operating expenses decreased by 15.5 to 17.9 million, compared to 21.2 million in the same period of 2019. Income from operations in the second quarter of 2020 increased by 30.7 to 8.6 million as compared to 6.6 million in the same quarter of 2019. For the first half of 2020, income from operations increased by 4.2 to 11.5 million, compared to 11.0 million in the same period of 2019. Non-GAAP income from operations4 in the second quarter of 2020 increased by 68.9 to 11.1 million as compared to 6.6 million in the same quarter of 2019. For the first half of 2020, non-GAAP income from operations increased by 27.7 to 14.1 million, compared to 11.0 million in the same period of 2019. Net income attributable to ordinary shareholders in the second quarter of 2020 increased by 37.4 to 9.1 million as compared to 6.6 million in the same quarter of 2019. For the first half of 2020, net income attributable to ordinary shareholders increased by 11.5 to 12.0 million, compared to 10.7 million in the same period of 2019. Non-GAAP net income attributable to ordinary shareholders5 in the second quarter of 2020 increased by 75.4 to 11.6 million as compared to 6.6 million in the same quarter of 2019. For the first half of 2020, non-GAAP net income attributable to ordinary shareholders increased by 35.5 to 14.6 million, compared to 10.7 million in the same period of 2019.___ 1. Glory Star defines this metric as the total number of downloads of the CHEERS App as of the end of the period. 2. Glory Star defines daily active users, or DAUs, as a user who has logged in or access Glory Stars online video content andor its e-commerce platform using the CHEERS App, whether on a mobile phone or tablet. Glory Star calculates DAUs using internal company data based on the activity of the user account and as adjusted to remove duplicate accounts. 3. Glory Star defines gross merchandise value, or GMV, as the total value of all orders for products and services placed in our online direct sales business and on our online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. 4. Non-GAAP income from operations is defined as income from operations excluding share-based compensation expenses. See Glory Star New Media Group Holdings Limited Reconciliation of GAAP and Non-GAAP results set forth at the end of this press release. 5. Non-GAAP net income attributable to ordinary shareholders is defined as net income attributable to ordinary shareholders excluding share-based compensation expenses. See Glory Star New Media Group Holdings Limited Reconciliation of GAAP and Non-GAAP results set forth at the end of this press release.Mr. Bing Zhang, Founder and Chief Executive Officer of Glory Star, commented, We concluded the second quarter of 2020 with solid financial and operating results as we leveraged our state-of-the art technology and premium content production capabilities to form additional partnerships and grow our e-commerce marketplace in the period. Since May, the outbreak of COVID-19 has been gradually brought under control in China, and we have thus been able to resume producing our industry-leading lifestyle content and providing highly-effective content marketing services to our partners. As a result, we grew our CHEERS e-Mall user base and established more partnerships with internationally renowned luxury brands in the second quarter to further solidify out content leadership at the high-end of Chinas luxury e-commerce market. In line with these successes, our CHEERS e-Mall continued to perform well in the period, especially during the 6.18 e-commerce shopping festival in 2020. Looking ahead, we plan to continue bolstering our in-house content production capabilities, expanding our e-commerce platform, and developing those marketing solutions capable of meeting our industry partners needs. We remain confident that our superior content production capabilities and unique ability to engage with Chinas younger demographic will not only help to fuel our growth momentum, but also deliver lasting shareholder value over the long term.Mr. Ian Lee, Chief Financial Officer of Glory Star, added, We are pleased to report another quarter of strong financial growth in spite of the challenging macro environment. GSMG delivered solid financial performance across our key financial metrics of revenue, cost reduction, profitability, and operating efficiency. Looking ahead, we remain committed to further optimizing our operating efficiency through cost structure management while also investing in those initiatives that are capable of enhancing our content production capabilities going forward. Second Quarter and Half Year 2020 Key MetricsWe monitor the following key metrics to evaluate the growth of our business, measure the effectiveness of our marketing efforts, identify trends affecting our business, and make strategic decisions:CHEERS App Downloads. We define this metric as the total number of downloads of the CHEERS App as of the end of the period. Because we have expanded into e-commerce through our CHEERS App, we believe that this is a key metric in understanding the growth in this business. The number of downloads demonstrates whether we are successful in our marketing efforts in converting viewers of our professionally-produced content on other platforms to the CHEERS App. 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 App and the increased traffic to our e-Mall platform. As of June 30, 2020, downloads of the CHEERS App exceeded 121.0 million as compared to 35.5 million as of June 30, 2019. We believe that this increase in downloads demonstrates the success that we have in converting viewers of our content to the CHEERS App.Daily Active Users DAUs. We define daily active users, or DAUs, as a user who has logged in or accessed our online video content andor our e-commerce platform using the CHEERS App, whether on a mobile phone or tablet. We calculate DAUs using internal company data based on the activity of the user account and as adjusted to remove duplicate accounts. DAU is a tool that our management uses to manage their operations. In particular, our management sets daily targets of DAUs and monitors the DAUs to see whether to make adjustments as to the promotional activities, advertising campaign, andor online video contents. For the three months ended June 30, 2019 and 2020, the average DAUs were 1.0 million and 4.9 million, respectively. For the six months ended June 30, 2019 and 2020, the average DAUs were 0.7 million and 4.5 million, respectively. Gross Merchandise Value GMV. We define gross merchandise value, or GMV, as the total value of all orders for products and services placed in our online direct sales business and on our online marketplaces, regardless of whether the goods are sold or delivered or whether the goods are returned. As we grow our e-Mall platform, it is important to monitor the volume of merchandise that we have sold through the e-Mall. By keeping track of the GMV, it allows us to determine the attractiveness of our CHEERS App platform to our merchants and users. As of June 30, 2020, the Companys e-Mall has carried 19,984 SKUs in total, compared to 3,000 as of June 30, 2019. For the three and six months ended June 30, 2020, our e-Mall has recorded over 14.1 million and 20.0 million of GMV, respectively, achieving an impressive monthly GMV of 7.7 million in June 2020, up from only 0.5 million in June 2019. We believe that the growth in the GMV will be driven significantly with our ability to attract and retain users to the CHEERS App through our professionally-produced content and to further enhance our product offerings.COVID-19 Affecting Our Results of Operations In December 2019, COVID-19 started to spread in China, and then to other parts of the world in early 2020. The COVID-19 pandemic has resulted in quarantines, travel restrictions, and temporary closure of stores and facilities in China and elsewhere. 