Baosheng Media Group Holdings Ltd (NASDAQ: BAOS)

Baosheng Media Group Holdings Limited is an online marketing solution provider based in China. The company assists advertiser clients in managing their online marketing activities to achieve business goals. It advises on online marketing strategies, offers value‑added advertising optimization services, and facilitates deployment of various ad formats such as search ads, in‑feed ads, mobile app ads, and social media marketing ads. Additionally, as an authorized agency for certain online media, it helps those media procure advertisers and facilitates ad placement on their channels. The company conducts its operations through wholly owned PRC subsidiaries, including Beijing Baosheng, Baosheng Network, and Beijing Zhiding, which together deliver its core services.

The company generates revenue primarily through two models. First, it earns rebates and incentives from media or their authorized agencies for procuring advertisers to place ads on those media’s inventory. Second, it earns net fees from advertisers when it purchases ad inventory on their behalf and provides advertising services, reporting the difference between gross fees charged and media costs incurred as net fees. In 2023, gross billing amounted to $18.8 million, media costs to $17.8 million, and net revenue to $0.9 million. In 2024, gross billing fell to $12.1 million, media costs to $11.5 million, and net revenue to $0.6 million. In 2025, gross billing rose to $18.4 million, media costs to $17.8 million, and net revenue remained at $0.6 million. The revenue mix shows that rebates and incentives contributed $488,692, or 85.9% of total revenue in 2025, $402,462, or 64.5% in 2024, and $887,038, or 96.2% in 2023. Net fees from advertisers accounted for $80,301 (14.1%) in 2025, $221,625 (35.5%) in 2024, and $34,796 (3.8%) in 2023. Service offerings include search ads (mainly CPC or CPT pricing), in‑feed ads (mostly CPM or CPC), mobile app ads (generally CPT or CPA), and social media ads (predominantly CPT).

Baosheng Media Group Holdings Limited operates in a highly fragmented and competitive online advertising market in China. It differentiates itself through a broad and diverse advertiser base spanning e‑commerce, online education, travel, finance, gaming, car services, and advertising agencies. The company’s established relationships with media entities and its authorized agency status with popular platforms such as Super Huichuan give it direct access to premium ad inventory. Coupled with an experienced management team and deep industry insights, these strengths enable the firm to attract and retain advertisers despite intense competition from other online advertising service providers and offline advertising channels. The firm believes it can effectively compete on the basis of access to media resources, size of its advertiser base, experience of its management and service professionals, sufficiency of funding, quality of service, brand recognition, optimization capability, and technological competency.

The company’s customers consist of both advertisers and media entities. Its advertiser base includes firms from sectors such as e‑commerce, online education, online travel agencies, financial services, online gaming, car services, and third‑party advertising agencies. In 2025, it served 714 advertisers, compared with 528 in 2024 and 285 in 2023. The top five advertisers contributed 83.4% of gross billing in 2025, 85.0% in 2024, and 54.2% in 2023. Industry breakdown of gross billing for 2025 shows e‑commerce & online service platforms at 71.0%, online travel agencies at 19.0%, car services at 3.5%, third‑party advertising agencies at 4.1%, and others at 1.7%, with online education and financial services each below 0.5%. Notable advertiser customers have included Shenzhen Oriental Modern Information Technology Co., Ltd., Beijing Dajia Network Information Technology Co., Ltd., Ctrip Network Technology (Shanghai) Co., Ltd., Guazi Automobile Service (Tianjin) Co., Ltd., and Beijing Quna Software Technology Co., Ltd. On the media side, the company acts as an authorized agency for platforms like Super Huichuan and various short‑video and news portal apps, earning rebates from those partners.