Company overview

Cheer Holding attracts viewers to its CHEERS App with original lifestyle content, short videos and live streams, then sells advertisers access to those audiences through video ads and paid product placements. It also distributes content through television stations and third-party video platforms. The app business supplies most revenue, and advertising accounts for nearly all revenue across the company. Third-party advertising agencies help sell campaigns to brands and collect payment, even when Cheer Holding deals directly with an advertiser.

Smaller sources of income include licensing its own shows, producing content to customers’ specifications, and charging merchants service fees and sales commissions on CHEERS e-Mall, where viewers can buy products.

The business depends on keeping viewers engaged with appealing content while controlling production costs. Advertisers generally do not commit to long-term contracts. Chinese content rules limit what the company can distribute, and authorities can require content removal or restrict operations.

Cheer Holding is a Cayman Islands holding company operating through Chinese subsidiaries and businesses it controls by contract rather than direct ownership. These contractual arrangements, known as VIEs, accommodate foreign-investment restrictions; the licensed operating entities hold key business assets, so the company depends on those contracts to direct them and receive their economic benefits.