Baosheng Media Group Holdings Limited (BAOS) stock plunged 5.56% in the after-market trading session at the price of $1.02 despite no updates. The last reported news was its financial results for the first half of 2021.
BAOS is an online marketing solution provider in Beijing, China. The company facilitates the deployment of online ads, suggests online marketing techniques, and presents advertising optimization services.
BAOS First-Half 2021 Financial Results
On 30th September 2021, BAOS reported its financial results for the first six months of 2021 and presented corporate updates.
Chairwoman and CEO of BAOS, Ms. Wenxiu Zhong, remarked that their business was under high pressure and their operating results dropped due to COVID-19 and the execution of stricter prevention policies during the first half of 2021. They have experienced consumption decline from many of their customers working in the Fintech, education, gaming, and real estate markets. The company has optimized its business strategies and made advancements in the Ocean Engine business to overcome the adverse impacts of COVID-19.
Moving onward, BAOS will restart conducting an in-depth study on the current market conditions and take proper steps to respond accordingly. They plan to institute a series of business inventions in the client staples field of their Ocean Engine mobile marketing forum. Moreover, they will focus on a content creation strategy to improve market models, optimize products, and develop in-depth collaboration. They are hopeful about the future growth of the company, she added.
BAOS Financial Results
For the first half of 2021, BAOS calculated a gross profit of $1.4 million. It dropped 84.3%, or $7.8 million, from $9.2 million for the same period of 2020. The gross margin was 59.8% in the first half of 2021, declined by 33.8% year-over-year. For the first half of 2021, net cash from operating activities totaled $27.8 million.
On 30th June 2021, BAOS had $12.1 million in cash and cash equivalents. For the first half of 2021, the net loss was $0.3 million, or $0.01 per basic and diluted share. The company generated a net income of $6.2 million, $0.30 per share, for the first half of 2020.