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Acorn International Foresees Little Impact From Trade War on its Business

SHANGHAI, Nov. 8, 2018 /PRNewswire/ -- Acorn International, Inc. (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.

Acorn International Inc.'s new corporate logo (PRNewsfoto/Acorn International, Inc.)

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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