Glory Star(GSMG) - 2021 Q4 - Annual Report

Financial Performance - Total revenues increased by 23.6% to US$153.0 million for the full year of 2021 from US$123.8 million for the full year of 2020[2] - Net income attributable to Glory Star New Media Group Holdings Limited's shareholders was $35,287 thousand in 2021, compared to$48,990 thousand in 2020, reflecting a decrease of 28%[18] - The company reported a comprehensive income of $38,178 thousand in 2021, down from$55,458 thousand in 2020, reflecting a decrease of 31.2%[19] - Net income for 2021 was $35,352 million, a decrease of 27.9$48,959 million in 2020[21] - Basic earnings per ordinary share for 2021 was $0.54, down from$0.91 in 2020, indicating a decline in profitability per share[19] User Engagement and App Performance - Downloads of the CHEERS App reached approximately 271 million as of December 31, 2021, a 60% increase from approximately 169 million as of December 31, 2020[1] - Monthly active users (MAUs) of the CHEERS App increased to approximately 47.6 million from 37.7 million for the full year of 2020[1] - Gross Merchandise Value (GMV) of the CHEERS App was approximately US$409 million, compared to US$132 million for the full year of 2020[1] Revenue Streams - Advertising revenues increased by 27.0% to US$132.9 million for the full year of 2021 from US$104.7 million for the full year of 2020[5] - CHEERS e-Mall marketplace service revenues increased by 348.7% to US$6.8 million for the full year of 2021 from US$1.5 million for the full year of 2020[5] Operating Expenses and Cash Flow - Income from operations increased by 18.3% to US$36.3 million for the full year of 2021 from US$30.7 million for the full year of 2020[6] - Operating expenses increased to $116,725 thousand in 2021, up from$93,094 thousand in 2020, primarily driven by higher selling and marketing expenses[18] - Net cash provided by operating activities increased by 431.5% to US$46.5 million for the full year of 2021 from US$8.7 million for the full year of 2020[2] - Cash and cash equivalents at the end of 2021 reached $77,302 million, up from$17,731 million in 2020, representing a 335.5% increase[21] Strategic Plans and Future Growth - The Company plans to implement a new metaverse retail strategy and develop the CheerChat application, anticipated to launch in 2022[4] - The company plans to focus on market expansion and new product development to drive future growth[18] Balance Sheet and Liabilities - Cash and cash equivalents decreased to $77,302 thousand from$17,731 thousand, indicating a significant change in liquidity position[16] - Total assets decreased to $143,396 thousand in 2021 from$195,173 thousand in 2020, representing a decline of 26.5%[16] - Total liabilities increased to $38,949 thousand in 2021, compared to$35,709 thousand in 2020, marking an increase of 6.6%[16] Other Financial Metrics - Research and development expenses rose to $920 thousand in 2021, compared to$691 thousand in 2020, highlighting increased investment in innovation[18] - The company experienced a significant change in fair value of warrant liability, with a loss of $809 million in 2021 compared to a loss of$19,714 million in 2020[21] - Accounts receivable improved significantly, with a change of $19,904 million in 2021 compared to a decrease of$24,043 million in 2020[21] - Depreciation and amortization expenses were $2,090 million in 2021, down from$2,910 million in 2020[21] - The company reported a substantial increase in share-based compensation for employees, totaling $4 million in 2021 compared to$5,381 million in 2020[21] - The effect of exchange rate changes resulted in a gain of $881 million in 2021, compared to a gain of$1,108 million in 2020[21]