Glory Star New Media Group Holdings Limited (GSMG) stock fell today following the announcement of the completion of the first tranche of the previously announced subscription agreement. GSMG stock saw a decline of 5.05% to drop at $2.82 a share at the time of this writing. The stock was green in the previous trade and went up by 4.95% at closing. Let’s dig in to explore more about this stock.

What’s Happening?

Glory Star New Media Group Holdings Limited operates by providing advertising and content production services in China. GSMG stock on August 30, 2021, completed the selling of $2,000,000 ordinary shares and warrants to purchase ordinary shares. Each ordinary share and warrant had a combined purchase price of $3.50. The gross proceeds for this sale reached approximately $10,000,000. GSMG stock is planning to use net proceeds for working capital and general corporate purposes.

GSMG stock’s Financial View in First Half 2021:

• GSMG stock generated US$71.9 million in revenue in the first half of 2021. This represents a 144.6% increase as compared to US$29.4 million in the prior-year same period.
• Income from operations jumped from US$11.5 million in the first half of 2020 to US$16.2 million in the first half of 2021. This represents a 40.9 % increase over the year.
• GSMG stock reported US$16.4 million Non-GAAP income from operations in the first of the ongoing year. This amount was US$14.1 million in the same tenure of the previous year.
• Net income attributable to ordinary shareholders was US$16.9 million, 44% lower as compared to the prior-year same period.
• Non-GAAP net income attributable to ordinary shareholders was US$16.9 million for the reported half, 15.8% up from the same prior-year period.
• Operating expenses of the stock significantly increased by 211.2% to US$55.7 million in the first half of 2021.

Key Developments of GSMG stock:

• As of June 30, 2021, 215.6 million individuals had downloaded the CHEERS App of the company. Glory star recorded $121 million downloads as of June 30, 2020.
• Daily active users were 7.1 million as of June 30, 2021, as compared to 4.5 million as of June 30, 2020.
• As of June 30, 2021, Glory Star’s e-Mall recorded approximately US$181.2 million of GMV. June’s monthly GMV was US$50.5 million

Wrap Up:

GSMG stock was green initially but then became gloomy in the intraday trading. However, this stock has gained 7.72% year-to-date. Investors must do deep research before making any decision.