BEIJING, March 10, 2025 (GLOBE NEWSWIRE) — Cheer Holding, Inc. (NASDAQ: CHR) (“Cheer Holding,” or the “Company”), a leading provider of advanced mobile internet infrastructure and platform services, today announced its financial results for the full year ended December 31, 2024.
Operating Highlights For The Year Ended December 31, 2024
Total downloads of CHEERS Apps were approximately 523.3 million as of December 31, 2024, representing a growth of 10.4% from December 31, 2023. Specifically:
CHEERS Video
CHEERS e-Mall
Cheer Real
CHEERS Telepathy
Financial Highlights For The Year Ended December 31, 2024
Selected Financial Results
Revenues
Our revenues were about $147.2 million for the year ending December 31, 2024, down approximately $5.1 million or 3.37% from $152.3 million in 2023. This decline was primarily driven by a $4.8 million drop in advertising revenue, as customers reduced their advertising orders in response to cost-saving measures amid a challenging macroeconomic environment.
Operating expenses
Operating expenses consist of cost of revenues, selling and marketing, general and administrative and research and development expense.
Net income
As a result of the foregoing, we had a net income of approximately $26.0 million in the year ended December 31, 2024, as compared to a net income of approximately $30.5 million in the year ended December 31, 2023.
Cash, cash equivalents and working capital
As of December 31, 2024 and 2023, our principal sources of liquidity were cash and cash equivalents of approximately $197.7 million and $194.2 million, respectively. Working capital at December 31, 2024 was approximately $265.7 million.
About Cheer Holding, Inc.
As a preeminent provider of next-generation mobile internet infrastructure and platform services in China, Cheer Holding 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.
Cheer Holding’s portfolio includes a wide range of products and services, such as Polaris Intelligent Cloud, CHEERS Telepathy, CHEERS Open Data 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 Cheer Holding’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, AI initiatives and technology infrastructure; 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 10, 2025. 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)
CHEER HOLDING, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. dollars in thousands, except share and per share data)
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 197,660 | $ | 194,227 | |||
| Restricted cash | – | 298 | |||||
| Accounts receivable, net | 77,074 | 81,170 | |||||
| Prepayment and other current assets, net | 30,834 | 31,179 | |||||
| Total current assets | 305,568 | 306,874 | |||||
| Property, plant and equipment, net | 33 | 85 | |||||
| Intangible assets, net | 40,531 | 20,255 | |||||
| Deferred tax assets | 72 | 41 | |||||
| Unamortized produced content, net | 16 | – | |||||
| Right-of-use assets | 371 | 377 | |||||
| Total non-current assets | 41,023 | 20,758 | |||||
| TOTAL ASSETS | $ | 346,591 | $ | 327,632 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities: | |||||||
| Short-term bank loans | $ | 9,590 | $ | 4,216 | |||
| Accounts payable | 2,039 | 9,599 | |||||
| Contract liabilities | 27 | 130 | |||||
| Accrued liabilities and other payables | 1,941 | 3,764 | |||||
| Due to related parties | 1,100 | – | |||||
| Other taxes payable | 25,095 | 28,178 | |||||
| Lease liabilities current | 109 | 330 | |||||
| Total current liabilities | 39,901 | 46,217 | |||||
| Long-term bank loan | 1,370 | 1,408 | |||||
| Lease liabilities non-current | 250 | – | |||||
| Total non-current liabilities | 1,620 | 1,408 | |||||
| TOTAL LIABILITIES | $ | 41,521 | $ | 47,625 | |||
| Shareholders’ Equity | |||||||
| Preferred shares (par value of $0.0001 per share; 2,000,000 shares authorized as of December 31, 2024 and 2023; nil and nil shares issued and outstanding as of December 31, 2024 and 2023, respectively) | $ | – | $ | – | |||
| Class A Ordinary shares (par value of $0.001 per share; 200,000,000 shares authorized as of December 31, 2024 and 2023; 10,285,568 and 10,070,012 shares issued and outstanding as of December 31, 2024 and 2023, respectively)* | 10 | 10 | |||||
| Class B Ordinary shares (par value of $0.001 per share; 500,000 shares and nil shares authorized as of December 31, 2024 and 2023; 500,000 and nil shares issued and outstanding as of December 31, 2024 and 2023, respectively) | – | – | |||||
| Additional paid-in capital | 113,485 | 106,215 | |||||
| Statutory reserve | 1,411 | 1,411 | |||||
| Retained earnings | 207,128 | 181,162 | |||||
| Accumulated other comprehensive loss | (17,041 | ) | (8,869 | ) | |||
| TOTAL CHEER HOLDING, INC SHAREHOLDERS’ EQUITY | 304,993 | 279,929 | |||||
| Non-controlling interest | 77 | 78 | |||||
| TOTAL SHAREHOLDERS’ EQUITY | 305,070 | 280,007 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 346,591 | $ | 327,632 | |||
CHEER HOLDING, INC.
CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(In U.S. dollars in thousands, except share and per share data)
| For the Years Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| Revenues | $ | 147,196 | $ | 152,327 | $ | 157,079 | |||||
| Operating expenses: | |||||||||||
| Cost of revenues | (39,388 | ) | (39,549 | ) | (40,580 | ) | |||||
| Selling and marketing | (75,289 | ) | (76,200 | ) | (82,534 | ) | |||||
| General and administrative | (3,499 | ) | (5,658 | ) | (5,908 | ) | |||||
| Research and development | (3,428 | ) | (1,635 | ) | (1,331 | ) | |||||
| Total operating expenses | (121,604 | ) | (123,042 | ) | (130,353 | ) | |||||
| Income from operations | 25,592 | 29,285 | 26,726 | ||||||||
| Other income (expenses): | |||||||||||
| Interest income (expense), net | 262 | 3 | (93 | ) | |||||||
| Change in fair value of warrant liability | – | 86 | (62 | ) | |||||||
| Other income, net | 80 | 1,215 | 282 | ||||||||
| Total other income | 342 | 1,304 | 127 | ||||||||
| Income before income tax | 25,934 | 30,589 | 26,853 | ||||||||
| Income tax benefit (expense) | 34 | (61 | ) | (413 | ) | ||||||
| Net income | 25,968 | 30,528 | 26,440 | ||||||||
| Less: net gain (loss) attributable to non-controlling interest | 2 | 51 | (450 | ) | |||||||
| Net income attributable to Cheer Holding, Inc.’s shareholders | $ | 25,966 | $ | 30,477 | $ | 26,890 | |||||
| Other comprehensive loss | |||||||||||
| Unrealized foreign currency translation loss | (8,175 | ) | (2,233 | ) | (13,357 | ) | |||||
| Comprehensive income | 17,793 | 28,295 | 13,083 | ||||||||
| Less: comprehensive (loss) gain attributable to non-controlling interests | (1 | ) | 3 | (478 | ) | ||||||
| Comprehensive income attributable to Cheer Holding, Inc.’s shareholders | $ | 17,794 | $ | 28,292 | $ | 13,561 | |||||
| Earnings per ordinary share | |||||||||||
| Basic and dilutive | $ | 2.51 | $ | 3.53 | $ | 3.95 | |||||
| Weighted average shares used in calculating earnings per ordinary share | |||||||||||
| Basic and dilutive | 10,327,198 | 8,637,504 | 6,812,387 | ||||||||
CHEER HOLDING, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. dollars in thousands)
| For the Years Ended December 31, | |||||||||||
| 2024 | 2023 | 2022 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income | $ | 25,968 | $ | 30,528 | $ | 26,440 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| (Reversal of provision) provision for doubtful accounts | (20 | ) | 2,096 | 440 | |||||||
| Provision for unamortized produced content | – | 112 | 770 | ||||||||
| Depreciation and amortization | 3,781 | 3,385 | 2,884 | ||||||||
| Amortization of right-of-use assets | 41 | 394 | 454 | ||||||||
| Loss from early termination of right-of-use assets | 15 | – | – | ||||||||
| Deferred income tax (benefits) expense | (33 | ) | 63 | (53 | ) | ||||||
| Share based compensation for employees | 1,745 | – | – | ||||||||
| Share based compensation for non-employees | – | – | 391 | ||||||||
| Written off of property and equipment | 2 | 2 | – | ||||||||
| Amortization of loan origination fees | 10 | 16 | 76 | ||||||||
| Change in fair value of warrant liability | – | (86 | ) | 62 | |||||||
| Income from waive of other payables | (156 | ) | – | – | |||||||
| Changes in assets and liabilities | |||||||||||
| Accounts receivable | 1,924 | 15,205 | (42,105 | ) | |||||||
| Prepayment and other current assets | (514 | ) | (22,270 | ) | 16,872 | ||||||
| Unamortized produced content | (16 | ) | 682 | 170 | |||||||
| Accounts payable | (7,402 | ) | 3,325 | (5,576 | ) | ||||||
| Contract liabilities | (101 | ) | (14 | ) | (356 | ) | |||||
| Accrued liabilities and other payables | – | (370 | ) | 565 | |||||||
| Other taxes payable | (2,347 | ) | 9,477 | 7,346 | |||||||
| Lease liabilities | (22 | ) | (371 | ) | (641 | ) | |||||
| Net cash provided by operating activities | 22,875 | 42,174 | 7,739 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Purchase of property, plant and equipment | (1 | ) | (3 | ) | (25 | ) | |||||
| Purchase of intangible assets | (24,861 | ) | – | – | |||||||
| Prepayments for acquisition of intangible assets | – | – | (7,964 | ) | |||||||
| Net cash used in investing activities | (24,862 | ) | (3 | ) | (7,989 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from short-term bank loans | 12,507 | 4,660 | 6,096 | ||||||||
| Repayments of short-term bank loans | (6,949 | ) | (4,802 | ) | (6,244 | ) | |||||
| Proceeds from long-term bank loans | – | 1,412 | – | ||||||||
| Payment of loan origination fees | (32 | ) | (58 | ) | (87 | ) | |||||
| Contribution (withdrawal of) from shareholders | 5,525 | (791 | ) | 743 | |||||||
| Borrowings from related parties | – | 1,600 | – | ||||||||
| Repayments to related parties | (500 | ) | – | – | |||||||
| Proceeds from issuance of ordinary shares in connection with a private placement | – | 80,000 | – | ||||||||
| Net cash provided by financing activities | 10,551 | 82,021 | 508 | ||||||||
| Effect of exchange rate changes | (5,429 | ) | (149 | ) | (7,078 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 3,135 | 124,043 | (6,820 | ) | |||||||
| Cash, cash equivalents and restricted cash, at beginning of year | 194,525 | 70,482 | 77,302 | ||||||||
| Cash, cash equivalents and restricted cash, at end of year | $ | 197,660 | $ | 194,525 | $ | 70,482 | |||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
| Interests paid | $ | 325 | $ | 271 | $ | 247 | |||||
| Income tax paid | $ | – | $ | – | $ | – | |||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FLOW INFORMATION: | |||||||||||
| Acquisition of intangible assets from prepayments | $ | 4,464 | $ | 4,464 | $ | – | |||||
| Right-of-use assets obtained in exchange for operating lease liabilities | $ | 385 | $ | – | $ | – | |||||
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