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WebsiteIntroduction
CHEER HOLDING INC (NASDAQ: CHR, “치어 홀딩스”) operates as a provider of mobile internet infrastructure and platform services in the People’s Republic of China. The company’s mission centers on creating a digital ecosystem that integrates platforms, applications, technology, and industry to support a web3.0 business environment underpinned by AI, blockchain, cloud computing, extended reality, and digital-twin capabilities. Its long-term vision includes the development of a 5G + VR + AR + AI shared-universe space.
| Ticker | Exchange | Price (2025-10-03) | Change (%) | Volume |
|---|---|---|---|---|
| CHR | NASDAQ | $0.1796 | +36.89 | 36,885,224 |
Corporate Structure and Governance
Cheer Holding, Inc. comprises two primary operating segments:
- Cheers APP Internet Business, which delivers digital content, e-commerce, and AI-driven services through its CHEERS app suite;
- Traditional Media Business, focusing on mobile and online advertising, content production, and live-broadcast offerings.
The company is incorporated in the Cayman Islands and headquartered in Beijing. Its equity is divided into Class A and Class B ordinary shares, with Chief Executive Officer Bing Zhang controlling approximately 69.9% of voting power following the October 2, 2025, public offering. Detailed employee counts are not publicly disclosed, although its operations span multiple subsidiaries engaged in platform development and traditional media.
Digital Ecosystem by fabio
Recent Developments and News
On October 1, 2025, Cheer Holding announced the pricing of a best-efforts public offering of 12,686,565 units at $0.67 per unit (Form 6-K). The offering, which closed on October 2, 2025 (Form 424B4), generated gross proceeds of approximately $8.5 million. Each unit comprises:
- One Class A ordinary share (or a pre-funded warrant to purchase one Class A share)
- One Series A warrant
- One Series B warrant
Series A and B warrants each allow holders to purchase a Class A share at $0.7035 per share, with Series B warrants featuring a zero exercise price option allowing holders to receive 5.1235 shares without additional cash payment. Holders of pre-funded warrants are limited to a 4.99% ownership cap (9.99% if elected).
Financial and Strategic Analysis
For the twelve months ended June 2024, Cheer Holding reported statutory net income of $34.1 million but free cash flow of $8.3 million, resulting in an accrual ratio of 0.27, which may indicate future profitability challenges. During the same period, share count increased by 11%, which impacts earnings per share metrics. Management plans to allocate the net proceeds from the October 2025 offering for general working capital and sales and marketing expenses to facilitate user acquisition. Placement agent fees total 8% of gross proceeds (7% selling commission plus 1% expense allowance), and directors and major shareholders are subject to a 90-day lock-up.
Market Position and Industry Context
Operating in the realms of AI-enabled applications, extended reality, and blockchain, Cheer Holding targets the evolving web3.0 landscape in China. Its CHEERS ecosystem—which spans e-commerce, short-video content, live broadcasts, and NFT collections—positions the company alongside digital media and platform service peers. In the traditional advertising and content production sectors, it competes with both domestic internet firms and established media networks, differentiating its offerings through AI-driven content creation tools and metaverse-related products.
TL;DR
On October 2, 2025, Cheer Holding closed a public offering raising $8.5 million through the sale of 12.7 million units (shares plus warrants). The company’s share price increased 36.89% on October 3, 2025, amidst concerns over a high accrual ratio of 0.27 and a free cash flow of $8.3 million compared to a profit of $34.1 million for the year ended June 2024. Proceeds are designated for working capital and marketing initiatives aimed at user growth. Future cash-conversion improvements are anticipated in fiscal 2026.
