20-F: Baosheng Media Group Inks Data Promotion Deal with Xiamen Jinri Toutiao

Baosheng Media Group's subsidiaries, Beijing Baosheng Technology and Beijing Baosheng Network Technology, enter into a data promotion business cooperation agreement with Xiamen Jinri Toutiao Information Technology, effective January 1, 2024, to December 31, 2024.

Summary

• Baosheng Media Group, through its subsidiaries Beijing Baosheng Technology and Beijing Baosheng Network Technology, has entered into a data promotion business cooperation agreement with Xiamen Jinri Toutiao Information Technology.
• The agreement, effective from January 1, 2024, to December 31, 2024, outlines the terms for Party B (Baosheng's subsidiaries) to entrust Party A (Xiamen Jinri Toutiao) to provide data promotion services.
• Party A authorizes Party B as a comprehensive agent in the country, excluding specific sectors like automobile manufacturers and real estate developers, with Party A retaining the right to adjust the agency scope.
• Party B is responsible for signing agreements with its customers and ensuring clarity in service items and standards, resolving any disputes arising from customer agreements independently.
• The agreement encompasses various data promotion methods, including non-bidding (CPT, CPM, CPV), bidding data promotion (CPM, CPC), and special agreements for self-produced programs and specific activities.
• Party B is responsible for timely fee renewal to ensure continuous service, with billing methods including CPT, CPM, and CPC in RMB.
• The agreement includes provisions for data protection, platform account management, preferential rights, data promotion rules, and dispute resolution.
• The agreement also covers liability for breach of contract, exemption clauses, anti-commercial bribery measures, and confidentiality.
• Party A has the right to set assessment indicators for Party B's data promotion and terminate the agreement if these indicators are not met.

Sentiment

Score: 7

Explanation: The document is a standard business agreement, with a neutral sentiment. It outlines the terms and conditions for data promotion services, with provisions for both parties' rights and obligations.

Positives

• The agreement outlines a clear framework for data promotion services, defining responsibilities and cooperation terms.
• Party B gains authorization as a comprehensive agent, expanding its reach in the data promotion market.
• The agreement covers various data promotion methods, providing flexibility in service offerings.
• The agreement includes provisions for data protection and user rights, ensuring compliance with regulations.
• The agreement outlines dispute resolution mechanisms, providing a framework for resolving potential conflicts.

Negatives

• Party A retains the right to unilaterally adjust the agency scope and period, potentially impacting Party B's business.
• Party A has the right to set assessment indicators and terminate the agreement if these indicators are not met, creating uncertainty for Party B.
• The agreement includes provisions that could lead to penalties and compensation claims against Party B for various violations.
• The agreement includes exemption clauses that limit Party A's liability in certain situations.

Risks

• Party A's unilateral adjustments to the agency scope and period could negatively impact Party B's business.
• Failure to meet Party A's assessment indicators could lead to termination of the agreement.
• Violations of the agreement could result in penalties and compensation claims against Party B.
• Exemption clauses limit Party A's liability, potentially leaving Party B vulnerable in certain situations.
• Changes in laws and regulations could impact the validity and enforceability of the agreement.

Future Outlook

The agreement outlines the terms for data promotion services between the parties, with potential for renewal based on performance and mutual agreement. The data promotion platform has the right to update the agreements, rules, notices and content from time to time.

Industry Context

This agreement reflects the ongoing trend of online marketing and data promotion in China, with companies seeking to leverage various platforms and strategies to reach their target audiences. The agreement also highlights the importance of compliance with data protection regulations and platform rules in the online advertising industry.

Comparison to Industry Standards

• The agreement's terms, including data promotion methods, fee structures, and compliance requirements, are generally consistent with industry standards for data promotion and advertising services.
• The agreement's focus on data protection and user rights aligns with increasing regulatory scrutiny and consumer awareness of data privacy.
• The agreement's provisions for dispute resolution and liability for breach of contract are standard in commercial agreements.
• The agreement's exemption clauses and limitations of liability are common in service agreements, but their specific terms may vary depending on the bargaining power of the parties.

Stakeholder Impact

• Shareholders: The agreement could positively impact the company's revenue and profitability, potentially increasing shareholder value.
• Employees: The agreement could create opportunities for employees in sales, marketing, and data promotion roles.
• Customers: The agreement could provide customers with access to more effective data promotion services, helping them reach their target audiences.
• Suppliers: The agreement could increase demand for data promotion services, benefiting suppliers in the online advertising ecosystem.

Next Steps

• Party B will implement the data promotion services according to the terms of the agreement.
• Party A will monitor Party B's performance and compliance with the agreement.
• The parties will conduct financial settlements and exchange invoices as agreed.
• The parties will evaluate the agreement's effectiveness and consider renewal or modification as needed.

Key Dates

Keywords

data promotion, Ocean Engine, advertising, agency agreement, marketing, China