SHANGHAI, Nov. 8, 2018 /PRNewswire/ -- Acorn International,
Inc. (NYSE: ATV) ("Acorn" or the "Company") today announced that it
has completed an initial assessment of the potential impact of the
trade war between the US and China
and, based on facts and information currently available and
assumptions the Company believes to be reasonable at the present
time, expects the trade war's impact on Acorn is likely to be
limited.
During 2018, the Company has not sold any products into the
United States. Products sourced from the United States accounted for less than 1%
of all costs of goods sold by the Company during 2018.
Consequently, an increase in tariffs between the U.S. and
China is not expected to have a
material impact on the Company's net sales, costs of goods sold, or
profit margin.
"Although we can't predict the exact impact trade tensions
between the US and China will have
on consumer spending in China, we
expect sales of luxury goods and discretionary items to be hit the
hardest, while sales of mid- and lower-priced staples are less
likely to be affected," said Mr. Robert
Roche, Acorn's Executive Chairman.
Mr. Jacob A. Fisch, Acorn's
President and CEO added, "As a Chinese company selling mid-priced
products sourced primarily in China directly to Chinese consumers, we do not
foresee any meaningful impact on our e-commerce business from
tariffs imposed by the US Government, or China's retaliatory tariffs in response.
Additionally, our product mix features health-related products,
including those targeting children and older adults, which are both
affordable and, we believe, relatively nondiscretionary. In
determining who is likely to be impacted by the trade war, it is
important to distinguish between businesses highly affected by the
trade in goods between the U.S. and China, and those, like ours, that is
fundamentally a domestic business insofar as we source and sell our
products principally within China."
About Acorn International, Inc.
Acorn International is a leading marketing and branding company
in China, leveraging a twenty-year
direct marketing history to monetize brand IP, content creation and
distribution, and product sales, through digital media in
China. Previously the leading TV
infomercial company in China,
Acorn today has three divisions support its growth: 1) Product
Division, 2) Content Division, and 3) Influencer Management
Division.
In the Product Division, Acorn sells product primarily through
e-commerce channels in China, as
well as through offline distribution and outbound marketing. In the
Content Division, Acorn monetizes content. Specifically, in the
Content Division, Acorn has redirected its direct marketing
know-how to digital media in China, launching Acorn Streaming, which is
primarily focused on live streaming and pre-recorded video content
creation and distribution. In the Influencer Management Division,
Acorn brings, through the creation of digital social content,
leading U.S. celebrity talent and brands to China, representing their in-country digital
presence. For more information visit
www.acorninternationalir.com.
Safe Harbor
Statement
This news release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "anticipates," "believes,"
"estimates," "expects," "future," "going forward," "intends,"
"outlook," "plans," "target," "will," "potential," and similar
statements. Such statements are based on management's current
expectations and current market and operating conditions, and
relate to events that involve known or unknown risks,
uncertainties, and other factors, all of which are difficult to
predict and many of which are beyond the Company's control,
including the duration and intensity of the US-China trade war,
which may cause the Company's actual results, performance, or
achievements to differ materially from those in the forward-looking
statements. Further information regarding these and other risks,
uncertainties, or factors is included in the Company's filings with
the U.S. Securities and Exchange Commission. The Company does not
undertake any obligation to update any forward-looking statement as
a result of new information, future events, or otherwise, except as
required by law.
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SOURCE Acorn International, Inc.