Baosheng Media Group Holdings Restricted Stories Fiscal 12 months

Beijing, China, April 30, 2021 (GLOBE NEWSWIRE) — Baosheng Media Group Holdings Restricted (the “Firm”) (Nasdaq: BAOS), a China-based on-line advertising and marketing answer supplier, at this time introduced its monetary outcomes for the fiscal 12 months ended December 31, 2020.

Ms. Wenxiu Zhong, Chairwoman and CEO of the Firm, commented, “The outbreak of COVID-19 final 12 months created a considerable and detrimental influence on our prospects and ourselves. Regardless of these short-term challenges, the underlying long-term fundamentals of our enterprise stay intact. We have been in a position to outperform most of our friends by counting on our resilient enterprise mannequin. We’ve got made significant progress on our key initiatives targeted on cooperating with our companions to create new advertising and marketing eventualities within the discipline of quick movies and dwell streaming. We use our ecosystem to extend the variety of followers or followers, totally deploy the dwell streaming enterprise, enhance the e-commerce of dwell streaming trade chain, and supply companions with one-stop dwell streaming companies and in-depth custom-made advertising and marketing options.”

Ms. Zhong continued, “Wanting ahead, we intend to strengthen our analysis and growth, discover new advertising and marketing fashions, improve our trade enterprise portfolio and make investments strategically in creating data streaming media enterprise, constructing knowledgeable group, growing our market share and realizing built-in advertising and marketing. We imagine these methods we carried out will allow us to renew development and enhance our profitability because the setting normalizes. Whereas a lot of our short-term focus has been on managing the impacts of COVID-19, we stay devoted to our long-term technique that can enable us to compete in bigger, higher-growth addressable markets. We’re well-positioned to capitalize on alternatives and create long-term worth for our shareholders.”

Fiscal 12 months 2020 Monetary Highlights

    For the 12 months Ended December 31,
($ hundreds of thousands, besides per share knowledge)   2020   2019   % Change
Income   11.9   17.8   -33.3%
Gross revenue   10.7   16.0   -33.4%
Gross margin   89.5%   89.6%   -0.1 pp*
Earnings from operations   5.6   10.5   -46.0%
Web earnings   6.9   11.2   -37.9%
Earnings per share   0.34   0.55   -38.2%

*Notes: pp represents proportion factors

  • Income decreased by 33.3% to $11.9 million in fiscal 12 months 2020 from $17.Eight million in fiscal 12 months 2019.
  • Gross revenue decreased by 33.4% to $10.7 million in fiscal 12 months 2020 from $16.Zero million in fiscal 12 months 2019.
  • Gross margin was 89.5% in fiscal 12 months 2020, in comparison with 89.6% in fiscal 12 months 2019.
  • Earnings from operation decreased by 46% to $5.56 million in fiscal 12 months 2020 from $10.5 million in fiscal 12 months 2019.
  • Web earnings decreased by 37.9% to $6.9 million in fiscal 12 months 2020 from $11.2 million in fiscal 12 months 2019.
  • Fundamental and diluted earnings per share have been $0.34 and $0.55 in fiscal 12 months 2020 and 2019, respectively.

Fiscal 12 months 2020 Monetary Outcomes

Incomes

The Firm acknowledges all revenues on a internet foundation, which includes of (i) rebates and incentives provided by publishers for procuring advertisers to position adverts with them, that are usually calculated close to the promoting spend of the Firm’s advertisers and are intently correlated to the Firm’s gross billing from advertisers; and (ii) internet charges from advertisers, that are basically the charges the Firm expenses its advertisers (i.e. gross billing) internet of the media prices the Firm incurred on their behalf.

Whole income in fiscal 12 months 2020 decreased by $5.9 million, or 33.3%, to $11.9 million from $17.Eight million in fiscal 12 months 2019.

    For the 12 months Ended December 31,
($ hundreds of thousands)   2020   2019   % Change
Rebates and incentive provided by publishers   9.4   15.9   -40.9 %
Web charges from advertisers   2.5   1.9   31.0 %
Whole   11.9   17.8   -33.3 %

The rebates and incentives provided by publishers decreased by $6.5 million, or 40.9%, to $9.Four million in fiscal 12 months 2020 from $15.9 million in fiscal 12 months 2019, which was primarily brought on by the lower of $5.1 million in revenues from cellular app adverts companies because of mixed results of decreased calls for from advertisers affected by COVID-19 and sure orders, and the Firm’s entry into extra internet fee-based contracts with advertisers fairly than rebate-and-incentive contracts, and the lower of $1.1 million in revenues from in-feed adverts companies because of decreased calls for from advertisers affected by COVID-19.

The web charges from advertisers elevated by $0.6 million, or 31.0%, to $2.5 million in fiscal 12 months 2020 from $1.9 million in fiscal 12 months 2019. As a result of the Firm entered into extra internet fee-based contracts with advertisers fairly than rebate-and-incentive contracts for cellular app adverts companies, the Firm’s internet charges earned from advertisers for cellular app adverts companies elevated by $0.7 million.

The Firm has promoting company revenues from Search Engine Advertising and marketing (“SEM”) companies and non-SEM companies.

    For the 12 months Ended December 31,
    2020     2019  
($ hundreds of thousands)   Income   Value of Income   Gross Margin   Income   Value of Income   Gross Margin
SEM companies   8.2   1.0   87.7 %   8.4   1.5   82.3 %
Non-SEM companies   3.7   0.3   93.3 %   9.4   0.4   96.1 %
Revenues   11.9   1.3   89.5 %   17.8   1.9   89.6 %

The revenues from SEM companies take the type of rebates and incentives provided by publishers. The revenues from SEM companies decreased by $0.Three million, or 3.2%, to $8.2 million in fiscal 12 months 2020 from $8.Four million in fiscal 12 months 2019. The lower in revenues from SEM companies was primarily because of a lower of $0.44 million, or 81.7% from non-Sogou publishers because the gross billing quantity positioned from the Firm’s advertisers with these publishers decreased by $2.7 million, or 68.2%.

The revenues from non-SEM companies are within the type of each rebates and incentives provided by publishers and the web charges from advertisers. The revenues from non-SEM companies decreased by $5.7 million, or 60.2%, to $3.7 million in fiscal 12 months 2020 from $9.Four million in fiscal 12 months 2019. In fiscal 12 months 2020, the rebates and incentives from non-SEM companies amounted to $1.Three million, representing a lower of $6.Three million, or 83.2% as in comparison with $7.5 million in fiscal 12 months 2019. Such lower was primarily because of a lower in gross billing by $24.9 million, or 47.7%, from much less in-feed adverts and cellular app adverts positioned by the Firm’s current advertisers, as their enterprise operations have been affected by the COVID-19 pandemic. The web charges the Firm earned from non-SEM companies elevated from $1.9 million in fiscal 12 months 2019 to $2.5 million in fiscal 12 months 2020, which was primarily due to a rise in internet charges of $0.7 million earned from cellular app adverts companies as a result of the Firm entered into extra internet fee-based contracts with advertisers fairly than rebate-and-incentive contracts for its cellular app adverts companies.

Value of revenues

The price of revenues was primarily comprised of payroll and welfare bills incurred by employees chargeable for advertiser companies and media relations, and taxes and surcharges. Whole value of revenues decreased by $0.6 million, or 32.3%, to $1.Three million in fiscal 12 months 2020 from $1.9 million in fiscal 12 months 2019. The lower was primarily attributable to a lower of employees prices by $0.6 million, or 33% because of a results of a lower by 17 headcount (month-to-month common headcount) and an exemption of the Firm’s social welfare bills by native authorities in response to the COVID-19 pandemic, and a lower of taxes and surcharges of $0.04 million, or 26% because of decreased revenues for the 12 months ended December 31, 2020.

Gross revenue

Gross revenue decreased by $5.Three million, or 33.4%, to $10.7 million in fiscal 12 months 2020 from $16.Zero million in fiscal 12 months 2019. General gross margin decreased by 0.1 proportion factors to 89.5% in fiscal 12 months 2020, from 89.6% in fiscal 12 months 2019.

Promoting and advertising and marketing bills

Promoting and advertising and marketing bills elevated by $0.5 million, or 130.4%, to $0.9 million in fiscal 12 months 2020 from $0.Four million in fiscal 12 months 2019. This improve in promoting bills was primarily because of a rise of $0.5 million in leisure bills for advertising and marketing and promotions because the Firm elevated its advertising and marketing efforts in the course of the fiscal 12 months ended December 31, 2020 to mitigate the detrimental influence of the COVID-19 and preserve long-term buyer relationship.

Common and administrative bills

Common and administrative bills decreased by $1.Zero million, or 20.8%, to $4.1 million in fiscal 12 months 2020 from $5.1 million in fiscal 12 months 2019. The lower was primarily because of a lower of $0.Four million in consulting {and professional} companies, a lower of $0.6 million in journey and leisure bills as a result of the Firm diminished such actions because of the COVID-19 pandemic, and a lower of $0.2 million in wage and welfare bills as a result of the native authorities exempted the Firm’s social welfare bills because of the outbreak of COVID-19, partially towards elevated provision for uncertain accounts of $0.Three million for accounts receivable which was supplied in accordance with the dangerous debt coverage, and elevated depreciation and amortization bills of $0.1 million because of purchases of property, tools and intangible belongings within the second half 12 months of 2019.

Curiosity expense, internet

Curiosity expense, internet elevated by $0.14 million, or 280.7%, to $0.18 million in fiscal 12 months 2020 from $0.04 million in fiscal 12 months 2019, which was primarily attributable to a rise of curiosity expense of $0.05 million accrued on financial institution loans borrowed in March 2020, a rise of curiosity expense of $0.06 million accrued on the quantity because of a associated social gathering, Pubang Panorama Structure (HK) Firm Restricted, and a rise of curiosity expense of $0.04 million incurred on borrowings from third events because of a rise of $0.7 million in common excellent steadiness in the course of the 12 months ended December 31, 2020.

Subsidy earnings

Subsidy earnings in fiscal 12 months 2020 primarily consisted of subsidy earnings from native tax authority of $0.9 million and $0.03 million acquired from a neighborhood authorities to advertise and appeal to funding and establishing of enterprise, in comparison with subsidy earnings in fiscal 12 months 2019 primarily consisted of subsidy earnings from native tax authority of $0.Eight million.

Different earnings (bills), internet

Different earnings, internet primarily consisted of acquire from disposal of the intangible asset, copyrights, of $0.6 million in fiscal 12 months 2020. Different bills, internet primarily consisted of accrued labor value compensation bills of $0.06 million in fiscal 12 months 2019, which arose from an unsettled authorized continuing with a person.

Earnings tax profit (expense)

Earnings tax expense was $0.1 million in fiscal 12 months 2020, as in comparison with earnings tax advantages of $0.02 million in fiscal 12 months 2019. The Firm transferred nearly all of its enterprise to the working subsidiaries in Horgos and Kashi, Xinjiang province since 2019, the place the Firm enjoys a five-year revenue tax exemption for the reason that first 12 months during which the enterprise operational income is earned. For the 12 months ended December 31, 2020, the earnings tax expense arose from the valuation allowance on deferred tax belongings acknowledged for Beijing Baosheng Know-how Firm Restricted as of December 31, 2019 because of uncertainties surrounding future utilization.

Net earnings

Web earnings was $6.9 million in fiscal 12 months 2020, in comparison with $11.2 million in fiscal 12 months 2019. Fundamental and diluted earnings per share was $0.34 in fiscal 12 months 2020, in comparison with $0.55 in fiscal 12 months 2019.

Monetary Situation

As of December 31, 2020, the Firm had money and money equal of $6.6 million, in comparison with $8.1 million as of December 31, 2019.

Web money utilized in working actions was $3.Four million in fiscal 12 months 2020, in comparison with internet money supplied by working actions of $9.Four million in fiscal 12 months 2019.

Web money supplied by investing actions was $1.2 million in fiscal 12 months 2020, in comparison with internet money utilized in investing actions of $1.6 million in fiscal 12 months 2019.

Web money supplied by financing actions was $0.Eight million in fiscal 12 months 2020, in comparison with $2.1 million in fiscal 12 months 2019.

About Baosheng Media Group Holdings Restricted

Baosheng Media Group Holdings Restricted, headquartered in Beijing, China, is a web based advertising and marketing answer supplier in China. The Firm advises advertisers on on-line advertising and marketing methods, presents value-added promoting optimization companies and facilitates the deployment of on-line adverts of assorted varieties equivalent to search adverts, in-feed adverts, cellular app adverts and social media advertising and marketing adverts. The Firm is devoted to serving to its advertiser purchasers handle their on-line advertising and marketing actions with a view to reaching their enterprise targets. For extra data, go to the Firm’s web site at http://ir.bsacme.com/

Ahead-Wanting Statements

All statements different than statements of historic reality in this announcement are forward-looking statements. These forward-looking statements contain identified and unknown dangers and uncertainties and are primarily based on present expectations and projections about future occasions and monetary traits that the Firm believes could have an effect on its monetary situation, outcomes of operations, enterprise technique and monetary wants. Traders can determine these forward-looking statements by phrases or phrases such ascould,” “will,” “count on,” ”anticipate,” “purpose,” “estimate,” “intend,” “plan,” “imagine,” “potential,” “proceed,” “is/are seemingly toor different related expressions. The Firm undertakes no obligation to replace forward-looking statements to replicate subsequent occurring occasions or circumstances, or adjustments in its expectations, besides as could be required by regulation. Though the Firm believes that the expectations expressed in these forward-looking statements are cheap, it can not guarantee you that such expectations will flip out to be appropriate, and the Firm cautions traders that precise outcomes could differ materially from the anticipated outcomes and encourages traders to evaluate different elements that could have an effect on its future outcomes in the Firm’s registration assertion and in its different filings with the SEC.

For extra data, please contact:

Investor Relations Contact:
Tina Xiao
Ascent Investor Relations LLC
+1-917-609-0333
[email protected]

 BAOSHENG MEDIA GROUP HOLDINGS LIMITED
CONSOLIDATED BALANCE SHEETS
As of December 31, 2020 and 2019
(Expressed in U.S. greenback, apart from the variety of shares)

    December 31,
2020
    December 31,
2019
 
ASSETS                
Present Property                
Money and money equivalents   $ 6,576,658     $ 8,120,622  
Restricted money     3,695,598       2,896,326  
Notes receivable           57,406  
Accounts receivable, internet of provision for uncertain accounts     65,154,845       54,623,760  
Prepayments     6,058,481       5,520,806  
Media deposits     6,837,879       8,662,456  
Deferred providing value     425,537        
Different present belongings     3,323,532       2,527,261  
Whole Present Property     92,072,530       82,408,637  
                 
Property and tools, internet     909,236       1,084,331  
Intangible belongings, internet     5,504       778,425  
Proper of use belongings     353,238       422,907  
Deferred tax belongings           107,643  
Whole Property   $ 93,340,508     $ 84,801,943  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Present Liabilities                
Financial institution borrowing   $ 1,532,567     $  
Mortgage from third events           4,305,396  
Accounts payable     35,376,612       35,832,633  
Advance from advertisers     3,287,653       595,561  
Advertiser deposits     5,881,908       6,561,975  
Dividends payable, present     3,371,648        
Tax payable     570,540       376,263  
As a result of associated events     715,546       635,133  
Working lease liabilities, present     351,551       391,629  
Accrued bills and different liabilities     591,622       735,249  
Whole Present Liabilities     51,679,647       49,433,839  
                 
Dividends payable, noncurrent           3,157,290  
Working lease liabilities, noncurrent           26,320  
                 
Whole Liabilities     51,679,647       52,617,449  
                 
Commitments and Contingencies                
                 
Shareholders’ Fairness                
Extraordinary Share (par worth $0.0005 per share, 100,000,000 shares licensed; 20,400,000 and 20,400,000 shares issued and excellent at December 31, 2020 and 2019*)     10,200       10,200  
Extra paid-in capital     3,814,665       3,814,665  
Statutory reserve     898,133       680,874  
Retained earnings     35,743,917       29,016,485  
Collected different complete earnings (loss)     1,193,946       (1,337,730 )
Whole Shareholders’ Fairness     41,660,861       32,184,494  
                 
Whole Liabilities and Shareholders’ Fairness   $ 93,340,508     $ 84,801,943  

 BAOSHENG MEDIA GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Years Ended December 31, 2020, 2019 and 2018
(Expressed in U.S. greenback, apart from the variety of shares)

    For the Years Ended
December 31,
 
    2020     2019     2018  
Revenues   $ 11,911,229     $ 17,846,900     $ 16,156,876  
Value of revenues     (1,256,353 )     (1,855,164 )     (1,469,927 )
Gross revenue     10,654,876       15,991,736       14,686,949  
                         
Working Bills                        
Promoting and advertising and marketing bills     (947,834 )     (411,391 )     (450,779 )
Common and administrative bills     (4,063,867 )     (5,129,987 )     (4,547,071 )
Whole Working Bills     (5,011,701 )     (5,541,378 )     (4,997,850 )
                         
Earnings from Operations     5,643,175       10,450,358       9,689,099  
                         
Different Earnings (Bills)                        
Curiosity expense, internet     (183,896 )     (48,311 )     (192,140 )
Subsidy earnings     955,439       819,755       189,683  
Different earnings (bills), internet     638,611       (65,754 )     (187,690 )
Whole Different Earnings (Bills), Web     1,410,154       705,690       (190,147 )
                         
Earnings Earlier than Earnings Taxes     7,053,329       11,156,048       9,498,952  
                         
Earnings tax profit (expense)     (108,638 )     18,528       (306,042 )
                         
Web Earnings   $ 6,944,691     $ 11,174,576     $ 9,192,910  
                         
Different Complete Earnings (Loss)                        
Overseas foreign money translation adjustment     2,531,676       (333,548 )     (1,371,911 )
Complete Earnings   $ 9,476,367     $ 10,841,028     $ 7,820,999  
                         
Weighted common variety of strange share excellent                        
Fundamental and Diluted*     20,400,000       20,254,247       20,000,000  
                         
Earnings per share                        
Fundamental and Diluted   $ 0.34     $ 0.55     $ 0.46  
                         
Dividend distributed per frequent share                        
Fundamental and Diluted   $     $     $ 0.36  

BAOSHENG MEDIA GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2019 and 2018
(Expressed in U.S. greenback, apart from the variety of shares)

    For the Years Ended
December 31,
 
    2020     2019     2018  
Money Flows from Working Actions:                        
Web earnings   $ 6,944,691     $ 11,174,576     $ 9,192,910  
Changes to reconcile internet earnings to internet money (utilized in) supplied by working actions:                        
Depreciation and amortization bills     449,035       340,894       36,142  
Amortization of right-of-use belongings     92,979       410,516        
Provision for uncertain accounts of accounts receivables     1,960,604       1,561,805       630,980  
Provision for uncertain accounts of prepayments and different present belongings           66,711       5,559  
Acquire from disposal of intangible belongings     (639,792 )            
Deferred tax bills (advantages)     108,638       (18,528 )     (46,031 )
Modifications in working belongings and liabilities:                        
Notes receivable     57,936       208,676       (278,358 )
Accounts receivable     (12,463,921 )     2,982,760       (29,467,731 )
Prepayments     (153,907 )     (3,150,578 )     (1,062,112 )
Media deposits     2,280,182       1,493,687       (4,735,613 )
Different present belongings     (590,378 )     (46,275 )     (1,970,304 )
Accounts payable     (2,730,134 )     5,093,900       9,262,850  
Advance from advertisers     2,506,020       (7,931,953 )     7,033,117  
Advertiser deposits     (1,063,757 )     (1,540,450 )     3,181,764  
Earnings tax payable     121,077       (338,653 )     149,831  
Accrued bills and different liabilities     (182,909 )     (527,212 )     741,307  
Working lease liabilities     (89,568 )     (415,517 )      
Web Money (Utilized in) Supplied by Working Actions     (3,393,204 )     9,364,359       (7,325,689 )
                         
Money Flows from Investing Actions:                        
Purchases of property and tools     (1,007 )     (691,376 )     (635,846 )
Purchases of intangible belongings           (887,575 )     (48,857 )
Proceeds from disposal of intangible belongings     1,245,619              
Mortgage to associated events           (7,438 )      
Web Money Supplied by (Utilized in) Investing Actions     1,244,612       (1,586,389 )     (684,703 )
                         
Money Flows from Financing Actions:                        
Capital injection from shareholders           1,797,731       1  
Proceeds from financial institution borrowing     1,448,394              
Proceeds from borrowings from third events     6,611,917       6,947,661       19,421,731  
Compensation of borrowings to 3rd events     (6,901,596 )     (2,605,373 )     (19,421,731 )
Proceeds from borrowings from associated events     36,115             650,823  
Compensation of borrowings to associated events           (29,867 )      
Cost of issuance value associated to preliminary public providing     (422,457 )            
Funds of dividends to shareholders           (4,052,802 )      
Web Money Supplied by Financing Actions     772,373       2,057,350       650,824  
                         
Impact of alternate price adjustments on money, money equivalents and restricted money     631,527       (70,130 )     (194,373 )
                         
Web (lower) improve in money, money equivalents and restricted money     (744,692 )     9,765,190       (7,553,941 )
Money, money equivalents and restricted money at starting of 12 months     11,016,948       1,251,758       8,805,699  
Money, money equivalents and restricted money at finish of 12 months   $ 10,272,256     $ 11,016,948     $ 1,251,758  
                         
Reconciliation of money, money equivalents and restricted money to the consolidated steadiness sheets                        
Money and money equivalents   $ 6,576,658     $ 8,120,622     $ 1,251,758  
Restricted money     3,695,598       2,896,326        
Whole money, money equivalents and restricted money   $ 10,272,256     $ 11,016,948     $ 1,251,758  
                         
Supplemental Money Move Data                        
Money paid for curiosity expense   $ 191,486     $ 28,750     $ 210,339  
Money paid for earnings tax   $     $ 252,878     $ 182,939  
                         
Non-cash working, investing and financing actions                        
Proper of use belongings obtained in alternate for working lease obligations   $ 355,450     $ 840,892     $  
Settlement of borrowings from a 3rd social gathering by netting off towards accounts receivable due from a 3rd social gathering   $ 4,055,502     $     $  

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