Cheer Holding’s Subsidiary Recognized Once Again as National High-Tech Enterprise, Boosting Business Prospects
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The designation of Cheer Holding's subsidiary as a National High-Tech Enterprise is a significant milestone that can have a notable impact on the company's market positioning. This status often correlates with enhanced credibility and trust among customers and investors, potentially leading to increased sales and investment inflows. Moreover, the tax incentives associated with this recognition could improve Cheer Holding's financial metrics, particularly its net income, by reducing its tax burden. This financial leverage can be reinvested in further innovation or used to improve the balance sheet, making the company more attractive to investors seeking growth and stability in the tech sector.
From a financial perspective, the tax incentives provided to National High-Tech Enterprises can have a direct impact on Cheer Holding's profitability. The reduction in tax rates can lead to an improved bottom line, which might be reflected in the company's financial statements in subsequent quarters. Investors should monitor the company's effective tax rate and net profit margins in future earnings reports to gauge the actual financial impact of this designation. Additionally, the market may react positively to this news in the short-term, potentially leading to an uptick in stock price as investors anticipate the benefits of the tax incentives and the company's strengthened position in the high-tech industry.
The reiteration of the National High-Tech Enterprise status is a testament to Cheer Holding's sustained R&D efforts and its ability to maintain technological leadership. This indicates that the company is not only investing in technology but is also successful in developing innovative solutions that meet stringent criteria. For industry stakeholders, this could signal that Cheer Holding is poised to maintain or even expand its competitive edge in the mobile internet infrastructure and platform services sector. The recognition may also facilitate partnerships and business opportunities, as other entities may seek to collaborate with a company that is officially recognized for its high-tech capabilities.
BEIJING, Feb. 06, 2024 (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 subsidiary, Glory Star (Beijing) Media Co., Ltd., has been granted the prestigious designation of National High-Tech Enterprise for the second time.
Under the provisions of the Enterprise Income Tax Law of the People's Republic of China and the relevant tax incentives for high-tech enterprises, this recognition entitles the Company to benefit from national policies aimed at promoting high-tech businesses, thereby strengthening its financial performance.
The consecutive recognition of Cheer Holding's subsidiaries as National High-Tech Enterprises serves as a testament to the Company's unwavering commitment to technological innovation, research and development prowess, and industry leadership. This prestigious recognition will expedite the transformation of the Company's technological advancements into practical solutions, bolstering its overall competitiveness and yielding positive results for its business growth.
The reiteration of Cheer Holding's recognition as a National High-Tech Enterprise not only highlights the Company's prominent position in the industry but also underscores its commitment to driving technological advancement and contributing to the overall development of China's digital economy.
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 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; 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 22, 2023, as amended. 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)
FAQ
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