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Ladies and gentlemen, thank you for standing by, and welcome to Glory Star New Media Group Holdings Limited's Full Year 2020 Earnings Conference Call. [Operator Instructions]. After the management's prepared remarks, we will have a question-and-answer session. Today's conference call is being recorded, and a webcast replay will be available at Glory Star's IR website.
Now I'd like to hand the conference over to your speaker host today, Mr. Yida Ye, Glory Star's Executive Assistant. Please go ahead, Mr. Ye.
Thank you, Mike. Hello, everyone, and welcome to our earnings conference call for the full year of 2020. Our financial and operating results were released earlier and are currently available on both our IR website at ir.yaoshixinghui.com or ir.gsmg.co and Newswire.
Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which also applies to this call as well, as we will be making forward-looking statements.
Joining us today are our CEO, Mr. Bing Zhang; and CFO, Mr. Perry Lu. Mr. Zhang will start the call by providing an overview of the company's performance and operational highlights for the full year of 2020. Mr. Lu will then provide details on the financial results for the period before we open up the call for your questions.
I will now turn the call over to Mr. Zhang.
Hello, everyone, and thank you for joining Glory Star's Earnings Call for the Full Year of 2020. Despite the outbreak of COVID-19 and macroeconomic challenges, the government's effective control of epidemic has led to a strong economic recovery in China. As a result of the macroeconomic turnaround and our business resiliency, the sum total of the second, third and fourth quarter revenues in 2020 were higher than our total revenues for the full year of 2019. More broadly, our total revenues in 2020 increased by 88.2% year-over-year to USD 123.8 million, where net income attributable to Glory Star in 2020 reached a record high, increasing by 11.2% year-over-year to USD 29.3 million.
We achieved that outperformance by executing our visionary strategy during the period. For example, we developed a series of products in-house to further extend their use cases and refined our user experiences. We also accelerate our efforts to forge more partnerships with leading platforms to further enhance our use to value proposition and diversify our revenue stream. As such efforts and as of year-end, our CHEERS App downloads have increased by 98% year-over-year to 169 million. Daily average users had increased by 180% year-over-year to 5.4 million. And our gross merchandise value had increased by 581% year-over-year to USD 132 million.
Going forward, to fuel our growth momentum, we will continue to refine user experiences, expand product use cases and cover new consumption through quality content offerings and enhance user stickiness by introducing more proprietary technology products and establishing more collaboration with other leading businesses.
Now turning to our business update. During 2020, to broaden the range of our product use cases, we continued to invest in research and development, upgrade our products and enrich our catalog of high-quality content offering. As such, we unlocked a wider variety of product use cases for our users and thus enabled them to more easily access our premium shopping, live streaming, media and game content.
We have remained determined to further extend product use cases in 2021. In February, for example, we announced our cooperation with Hangzhou Beiying, a subsidiary of the leading smart home entertainment solution developer and manufacturer, Dangbei Network. Through this partnership, we aim to expand our footprint in the Internet of Things and smart hardware market, which should also serve to provide our users with more immersive and interactive experiences.
Additionally, we are also focused on launching new products with state-of-the-art technology. We are currently in the process of developing and testing Cheer Chat, which is the first voice-centric social networking product that we launch in the overseas market utilizing the convenience of mobile devices, 5G and related in speech recognition and AI technology. Cheer Chat creates a more personalized, entertaining and interactive experience for our users to socialize online.
Cheer Car [ph], our in-vehicle audio and video content application for electric vehicles, has also entered its internal testing phase. Once launched, this product will enable both drivers and passengers to access our trademark content and service across all maintained systems.
Looking ahead, as the right 5G continues to accelerate, we plan to leverage 5G and AR technology to further refine our user experiences. In line with these efforts, we've increased number of AR applications across the platform including CHEERS video, CHEERS e-Mall, while also expanding these applications into other areas such as interactive content. Meanwhile, to further accompany the gradual expansion of our CHEERS video AR platform, we will work hand in hand with large-scale mobile operators such as China Telecom.
By integrating these cutting-edge 5G and AR technologies across our business, we will also promote the business applications of these technologies and enhance users' content consumption experiences and work to better satisfy users' increasing demand for diverse and personalized entertainment solutions.
Now turning to our progress on the partnership front. In 2020, we actively set out more cooperation opportunities with other leading businesses with a particular focus on leading platforms. Accordingly, we enhanced our user stickiness, enriched our lifestyle scenarios and diversified our revenue stream in May.
For example, we partnered with JD.com to unleash a new generation of content solutions capable of helping JD.com to better satisfy the need of their customers for premium lifestyle-oriented online content.
Additionally, by the end of 2020, CHEERS e-Mall had completed -- has completed its launch of third-party platform services to cover all aspects of lifestyle services. This integration included a partnership with Taobao, which began in November. As a result of this partnership, users are now able to seamlessly access Taobao's merchandise through our CHEERS e-Mall platform, where CHEERS e-Mall SKUs have expanded to more than 100 million, in turn.
We remain focused on expanding our partnership base to increase our market share, refine our user value proposition and enhance our user stickiness. Earlier this year in March, for example, we signed a cooperation agreement with Toutiao, which is ByteDance's content platform for Chinese language news and information. Users can now browse Toutiao's graphic and video content in real time in our CHEERS video app.
Going forward, we plan to explore more opportunities for innovation with Toutiao in other fields, including search and AI. We also plan to remain in active dialogue with potential new partners to drive business growth.
In summary, our efforts to introduce more in-house developed products, expand our product use cases and grow our partnership base continue to see our growth momentum. Looking ahead, we tend to remain true to our mission and are enriching people's lives. And therefore, we'll continue to enriching people's lives through our ongoing commitment to expanding our user base, upgrading our platform and strengthening our research and development capabilities.
At the same time, we'll also aggressively open up our platform to more UGC content creation by extending our blueprint -- our business blueprint through more quality investment and merger and acquisition opportunities throughout the market for the new lifestyle consumption. As the macro economy continues to recover, we remain well positioned to capitalize on lifestyle -- to capitalize on those development trends in the areas of new retail and e-commerce, premium content-driven e-commerce, enterprise software as a service, 5G and AR technologies, instant payments, AI voice, social networking platform, in-vehicle interactive audio and video content and more. We are confident that we have the right strategy in place to maximize our development opportunities in the future and thus create more long-lasting value for our shareholders and investors, in turn.
This concludes my prepared remarks for today. With that, I will now turn the call to Mr. Perry Lu, our CFO, who will provide an overview of our financial highlights.
All right. It's my turn now. And thank you, Mr. Zhang, and hello, everyone. This is Perry. I'm the Chief Financial Officer of the company.
Before explaining our financial details, please note, our numbers are in U.S. dollar terms unless otherwise stated. Despite the macro challenges, we achieved very strong results in 2020 during the year. As a result of China's economic recovery, our diversified business segment, leading R&D capabilities and the active address on consumer taste, we generate substantial growth in both our top line and bottom line with increased financial capability from our recent equity offering. We are confident we'll continue to capitalize on the emerging opportunities to further promote our rapid development in the post-pandemic world.
In the full year of 2020, we grew our revenue by 88.2% year-over-year to $123.8 million. By breaking these numbers down, revenues from our CHEERS App, the Internet business, increased by 195.3% year-over-year to $83.6 million, accounting for 67.5% of our total revenues. Importantly, revenue contribution from our Internet business ramped up significantly in the period mainly due to our continuous optimization of our online digital media and entertainment platform. Meanwhile, our Media business revenue increased by 7.2% year-over-year to $40.2 million. That is accounting for the remaining 32.5% of our total revenues.
Just to break down our revenues further, our advertising revenue increased by 116.3% to $104.7 million in the full year of 2020 as we continued to improve our content offering on our CHEERS platform. That is including short videos, live shows, online games, network dramas and many others, which attract a significant number of active users and advertisers, in turn.
At the same time, CHEERS e-Mall market service revenue grew by 126.4% year-over-year to $1.5 million in the full year of 2020. That is mostly because we continue to optimize our service and merchandise offering of our e-Mall platform through cooperation with many business customers as the pandemic led to the restriction of outdoor activities, we meet strong demand for online entertainment and shopping. We also grew our customized content production revenue at 12.1% year-over-year to $10.2 million in the full year of 2020 as our shopping and streaming revenue continues to gain traction.
Our cost of revenue increased by 20.6% year-over-year to $38.5 million. That is mainly in line with increase in our revenue and partially offset by improved cost management.
Within our operating expenses, selling and marketing expense increased to $43.8 million in the full year of 2020 compared to $3.2 million a year ago. That is primarily due to the increase in advertising fees as well as an increase in marketing and user acquisition activities to attract new customers for the company's CHEERS application and CHEERS e-Mall.
And also, the general and admin expenses increased to $10.1 million in the full year of 2020 compared to $3.1 million a year ago. That is primarily due to increase in share-based compensation and other professional service fees related to company's business combination.
R&D expenses consist primarily salaries and benefits for our R&D department. R&D expenses for the year ended 31st 2019 and 2020 were $0.7 million and $0.7 million, respectively.
And the income from operations increased by 14.3% year-over-year to $30.7 million. And operating margin in full year of 2020 was 24.8% compared to 40.8% a year ago.
Net income attributable to Glory shareholders increased by 11.2% year-over-year to $29.3 million. Net margin in the full year of 2020 was 24% compared to 40% a year ago.
Basic and diluted net income per share were $0.54 and $0.50, respectively, in the full year of 2020 compared to basic and diluted net income per share of $0.64 and $0.57, respectively, in the full year of 2019. As of December 31, 2020, cash and cash equivalents amounted to $17.7 million as compared to $6.9 million as of December 31, 2019. The increase in cash balance was primarily due to the cash generated from our operating activities and financing activities.
Going forward, we're trying to use our significant liquidity to further enhance CHEERS apps and fuel our business development. This pretty much concludes our prepared remarks for today.
And operators, we are now ready to take questions. Thank you.
[Operator Instructions]. And the first question we have will come from Kwai Wu [ph], Investor.
I have a question for you. What is the company's strategic vision for its business model? Will the company's main business model be more focused on e-commerce or Internet media in the future?
All right. To extend our coverage beyond our core mission of enriching people's life, we provide vibrant content and premium products and services that span across the online entertainment industry, that expand our product use cases and better satisfy users' demand for diverse and personalized entertainment solutions and content consumption.
Throughout the years, we had invested on building a high-quality platform covering all lifestyle-related use cases for users, customers and merchants. This platform has all kinds of characteristics such as e-commerce, digital, media related and many more. Such characteristics enable us to enrich people's lives and meet their highly frequent demands in entertaining -- in entertainment, consumption and other related areas throughout their daily life. As of now, the entire CHEERS ecosystem is built up upon two core focuses of this video content media platform and content-driven e-commerce platform.
We have several different products. First, in our CHEERS media app, which is a high-quality lifestyle content application platform. Second is our high-quality in-house developed content, which includes short-form video, interactive live streaming events, audio and video content, online variety shows, TV programs as well as Internet distribution capabilities. Third is Cheer Car [ph], which is currently in a testing phase and is our in-vehicle audio and video content application for electric vehicles. Fourth is Cheer Chat, which is currently being developed and tested and is our first voice-based social networking product to be launched in the overseas market. Fifth is our CHEERS e-Mall, which offers merchandise under its private-label, partnered brands and other products and services through a software-as-a-service service provider, partners -- I'm sorry, SaaS service provider, partners.
The products on our digital content media platform and content-driven e-commerce portfolio will empower each other and form a closed loop within CHEERS App. As of now, these products have already gained sizable market share. In 2021, we will continue to increase our brand awareness through a number of new marketing initiatives and promotion methods as well as opening us to more user-generated content creation on our platform.
All right. That answers your question. All right. The second question would be, as there are other larger players in the industry also doing video e-commerce, how does the company plan to position and promote itself to survive in an environment monopolized by Tiktok and PUBG? That question came from a shareholder of the company.
First of all, as new entertainment company, we not only have strong Internet product and innovation capabilities, we also have top-tier content production personnel and equipment. We will continue to strengthen our high-quality lifestyle content offerings in the professionally generated content area. In 2021, we will open the platform to all users to create more content, varying from professionally generated content to a mix of professionally generated content, professionally -- professional-user-generated content and user-generated content. We will accelerate the expansion of our content offerings, enrich our product use cases and improve our user experiences, participation and belonging.
Secondly, in terms of business focus, we will focus on high-quality, lifestyle-related areas. We will provide the differentiated products in all lifestyle-related business verticals and enhance our leadership position in this area.
Furthermore, in terms of corporate strategy, we will continue to improve our CHEERS e-Mall product matrix, enhance our strategic cooperation with Taobao and JD.com as well as enrich our private label. We will also extend our businesses in lower-tier cities, optimize our connections with SaaS service providers and other third-party service providers and accelerate the launch of Cheer Chat, Cheer Pay, in-vehicle interactive audio and video content applications and other products in the media and e-commerce sectors.
Last but not least, we will continue to enhance our competitive advantage in R&D, seek collaboration opportunities with the research institute of other companies and with universities and build a comprehensive headquarters with research, innovation and education all in the same place. As of now, for example, we are in the process of building our Cheers Academy in Wuxi.
Okay. That concludes our answers.
Very well, thank you, sir. And as there are no further questions at this time, I would like to hand the conference back over to the management team for any closing remarks. Gentlemen?
Okay. Thank you again for joining our call. If you have any further questions, please feel free to contact us or request through our IR website or you send an e-mail. We look forward to speaking with everyone in our next earnings call. Have a good one.
Thank you.
And we thank everyone for your time also. The conference call has now concluded. At this time, you may disconnect your lines. Thank you, take care, and have a great day, everyone.