Baosheng Media Group Holdings Limited · NASDAQ:BAOS
Baosheng Media — IPO Roadshow (January 2021)
29 slides from Baosheng Media's IPO roadshow presentation, Jan 25, 2021
Slide 1: Baosheng Media Group Holdings Limited Investor Presentation
Baosheng Media Group Holdings Limited Investor Presentation （ Nasdaq Ticker : BAOS ） January 2021 SEC File Number 333 - 239800
Slide 2: Free writing prospectus notice
This free writing prospectus relates to the proposed public offering of ordinary shares (“Ordinary Shares”) of Baosheng Media Group Holdings Limited (“we”, “us”, or “our”) and should be read together with the Registration Statement we filed with the Securities and Exchange Commission (the “SEC”) for
Slide 3: Forward-looking statements
This presentation contains forward - looking statements that reflect our current expectations and views of future events, all of which are subject to risks and uncertainties . Forward - looking statements give our current expectations or forecasts of future events . You can identify these statements
Slide 4: Initial Public Offering summary
Baosheng Media Group Holdings Limited Initial Public Offering Nasdaq Capital Market – “BAOS” (approved subject to completion of the offering) 5,000,000 Ordinary Shares $5.00 - $6.00 $25 - 30 million ( A ssuming no exercise of over - allotment option and excluding 300,000 Ordinary Shares ) 15% 20,400
Slide 5: Fiscal Year 2019 Summary
Fiscal Year 2019 Summary Source: 1 Frost & Sullivan entitled “China Online Advertising Market Study, Independent Market Research Report” on July 2019 (the “Frost & Sullivan Report”). See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be ach
Slide 6: no guarantee that any specific outcome will be is a risk of loss.
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 7: Corporate structure and pre/post-IPO ownership
Pubang Landscape (PRC) Pubang Hong Kong (Hong Kong) CYY Holdings (BVI) EJAM Group (PRC) EJAM International (Hong Kong) EJAM BVI (BVI) An Rui Tai BVI (BVI) Deng Guan BVI (BVI) PBCY Investment (BVI) Other Shareholders Public Shareholders Baosheng Group (Cayman Islands) Baosheng BVI (BVI) Baosheng Hong
Slide 8: Online marketing service provider and authorized agency
As an online marketing service provider, we connect advertisers and online media, helping advertisers to manage their online marketing activities in the following ways : • advising on advertising strategies, budget and choice of advertising channels • procuring ad inventory • offering ad optimizatio
Slide 9: Advertising industry value chain
A dvertising Agencies (with direct access to media) A dvertising Agencies (no direct access to media) Provide access to ad inventory Gross media cost and advertising service fee $$$ Rebate and inventive $$$ (for advertising agency with rebate policy) Advertisers Media Audience Gross media cost and a
Slide 10: Revenue model: rebates and fees
Media (or its authorized agency) Baosheng Advertiser Rebates and Incentives Rebates Media (or its authorized agency) Baosheng Advertiser Cost of Procuring Ad and inventory and other advertising services Gross Fee from Advertiser See offering documents for further risks and disclosures. There is no g
Slide 11: Advertising service types
Search ads are normally located at the top, or on the side of the search results page, or the related products of the search engine operators . Auction - based ads: mainly cost per click (“CPC”) Non - auction - based ads: mainly cost per time (“CPT”) Rebates and Incentives In - feed ads are advertis
Slide 12: Acquiring advertisers and campaign process
Acquiring Advertisers Pre - launch Campaign Launch and Performance Review x approach potential advertisers based on market intelligence x exploit industry connections x new businesses from existing advertisers x referrals from advertisers (including advertising agency) and media x from media directl
Slide 13: no guarantee that any specific outcome will be is a risk of loss.
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 14: no guarantee that any specific outcome will be is a risk of loss.
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 15: China internet users and penetration
648.8 688.3 731.3 772.0 829.0 883.1 934.9 983.2 1025.7 1064.2 47.4% 50.1% 52.9% 55.5% 59.4% 63.1% 66.5% 69.7% 72.5% 75.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 0 200 400 600 800 1000 1200 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E Million Number of Internet Users Internet
Slide 16: China online advertising market by device and channel
2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E Mobile Advertising 37.8 85.6 131.7 217.2 322.9 456.0 613.7 797.6 998.5 1244.7 PC Advertising 114.9 126.7 127.7 134.6 148.1 159.9 169.5 179.1 185.5 186.4 0 200 400 600 800 1000 1200 1400 1600 RMB Billion Source: 1 Frost & Sullivan Report 2014 201
Slide 17: China online advertising market segments
51.8 88.2 141.7 187.8 232.2 310.9 403.3 512.2 633.4 780.2 0 100 200 300 400 500 600 700 800 900 RMB Billion Source: 1 Frost & Sullivan Report 48.5 68.1 84.3 115.4 152.6 197.7 252.2 316.5 381.2 462.2 0 50 100 150 200 250 300 350 400 450 500 RMB Billion 3.1 17.5 30.7 46.3 88.0 131.0 179.5 226.6 279.5
Slide 18: no guarantee that any specific outcome will be is a risk of loss.
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 19: Growth strategy
To capture the potential growth of the online advertising service market, we intend to continuously expand our advertiser base, increase the amount of advertising spend from our advertisers . S ecur ing access to popular media with authorized agency status will in turn help us attract more advertise
Slide 20: Management and directors
Wenxiu Zhong C hairperson of the board and C hief E xecutive O fficer • O ver 14 years of experience in the advertising industry . • B achelor ’ s degree in computer and application from Heibei University of Science and Technology in 2006 . Sheng Gong National Sales Director of SEM Advertising • Ove
Slide 21: no guarantee that any specific outcome will be is a risk of loss.
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results.
Slide 22: Key strengths
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results. W e off er marketing channels ranging from deployi
Slide 23: FY2018-FY2019 revenue, gross profit and net income
16.16 17.85 14.69 15.99 9.19 11.17 FY2018 FY2019 Million s USD Revenue , Goss Profit and N et Income Revenue Gross Profit Net Income 90.9% 89.6% 56.9% 62.6% FY2018 FY2019 Gross Margin and Net Profit Margin Gross Margin Net Profit Margin Note: Fiscal year end is December 31. See offering documents fo
Slide 24: 1H2019-1H2020 revenue, gross profit and net income
10.96 9.80 10.02 9.17 6.77 6.17 1H2019 1H2020 Unaudited Million s USD Revenue , Goss Profit and N et Income Revenue Gross Profit Net Income 91.4% 93.6% 61.7% 63.0% 1H2019 1H2020 Unaudited Gross Margin and Net Profit Margin Gross Margin Net Profit Margin See offering documents for further risks and d
Slide 25: FY2018-FY2019 revenue, gross profit and net income
16.16 14.69 9.19 17.85 15.99 11.17 Revenue Gross Profit Net Income Million s USD Revenue , Goss Profit and N et Income FY2018 FY2019 90.9% 56.9% 89.6% 62.6% Gross Margin Net Profit Margin Gross Margin and Net Profit Margin FY2018 FY2019 See offering documents for further risks and disclosures. There
Slide 26: 1H2019-1H2020 revenue, gross profit and net income
10.96 10.02 6.77 9.80 9.17 6.17 Revenue Gross Profit Net Income Million s USD Revenue , Goss Profit and N et Income 1H2019 1H2020 Unaudited 91.4% 61.7% 93.6% 63.0% Gross Margin Net Profit Margin Gross Margin and Net Profit Margin 1H2019 1H2020 Unaudited See offering documents for further risks and d
Slide 27: Revenue breakdown FY2019
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results. 89% 11% Revenue Breakdown (Fiscal Year 2019) Rebat
Slide 28: Revenue breakdown 1H2020
See offering documents for further risks and disclosures. There is no guarantee that any specific outcome will be achieved. I nve stments may be speculative, illiquid and there is a risk of loss. Past performance is not indicative of future results. 88% 12% Revenue Breakdown (1H2020 Unaudited) Rebat
Slide 29: Contacts
Edric Guo COO Email: yguo@univest.us Tel: +1 - 646 - 775 - 0000 Address: 375 Park Avenue, 15th Floor New York, NY 10152 USA Investor Relations Ascent Investor Relations LLC Tina Xiao President Email: tina.xiao@ascent - ir.com Tel: +1 - 917 - 609 - 0333 Address: 733 Third Avenue, 16th Floor New York,
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