Baosheng Media Group Holdings Limited (BAOS) stock soared 79.75% in the after-hours trading session at the price of $2.84 despite no fundamental reason. The last published news was its financial results for the first six months of 2021. BAOS is a marketing solution provider that offers value-added marketing optimization services, guides marketers on advertising strategies, and promotes the deployment of ads on various social media platforms.
BAOS First Half of 2021 Financial Results
On 30th September 2021, BAOS published its financial results for the first six months ended on 30th June 2021 and provided corporate updates.
Financial Highlights
BAOS reported revenue of $2.4 million in the first half ended 30th June 2021. It represents a drop of 75.4% from $9.8 million in the first half ended 30th June 2020. The gross profit was $1.4 million in the first half of 2021. It is a loss of 84.3% or $7.8 million from $9.2 million in the first half of 2020. For the first half of 2021, the net loss was $0.3 million compared to $6.2 million in the first six months of 2020. Loss per share (basic and diluted) was $0.01 in the first six months of 2021. As of 30th June 2021, cash and cash equivalents were approximately $12.1 million. Cash and cash equivalents were $6.6 million as of 31st December 2020.
Management Comments
Ms. Wenxiu Zhong, Chief executive officer of BAOS, remarked that their business was under high pressure in the first half of 2021 due to rising COVID-19 cases and the implementation of strict preventive measures. Both the consumer market and domestic travel market underwent losses. They have witnessed consumption declines from their clients operating in the Fintech, education, gaming, and real estate industries. BAOS has actively optimized the business strategies and made progress in their Ocean Engine sector. It has also established alliances with Alibaba and Bytedance to counter the unfavorable impacts of COVID-19 and the governmental policies on its financial results, Mr. Zhong added.
Looking ahead, the company will conduct an in-depth study on the current business environment and take proper steps to respond accordingly. BAOS plans to launch a series of market innovations in the Ocean Engine mobile marketing platform. Meanwhile, it will focus on a content innovation plan to optimize goods and services, develop in-depth collaboration, and improve business models. They are very confident about the future progress of the company, Ms. Zhong continued.
