DataSea Announces 5G Multimodal Communication Technology Service Agreement

Rhea-AI Summary

Datasea Inc. announces a new Cooperation Agreement with Hangzhou Chongda Technology Co., Ltd. to boost sales of 5G multimodal communication services in China, with an estimated value of $30 million. The agreement aims to expand customer base and revenue generation opportunities in the 5G market.

Insights

Market Research Analyst

The strategic alliance between Datasea and Chongda is a significant development, likely to bolster Datasea's market share in the 5G multimodal communication sector. By securing a deal of considerable magnitude, Datasea not only forecasts a substantial revenue increase but also solidifies its market presence. The projected revenue from this agreement represents a significant leap from Datasea's reported earnings in the first half of 2024, indicating aggressive expansion and potential market penetration.

The partnership with Chongda, a company with a broad customer base in marketing services, could provide Datasea with access to a wider audience and diverse clientele, potentially improving its competitive edge. The demand for 5G services in China is on an upward trajectory and Datasea's ability to capture this demand through strategic agreements is crucial for its growth. This collaboration could serve as a benchmark for future deals and may attract investor interest due to the anticipated positive impact on Datasea's financial performance.

Telecommunications Expert

5G multimodal communication technology is pivotal for the next wave of digital transformation in China. It encompasses not just faster data speeds but also the integration of various communication methods, such as voice, video and data, over 5G networks. Datasea's focus on this technology suggests a commitment to innovation and meeting the sophisticated needs of modern enterprises and consumers.

The estimated value of the agreement with Chongda implies a robust demand for such services. Given the complexity of 5G multimodal communication, Datasea's ability to deliver these services efficiently may indicate a high level of technical proficiency and infrastructure readiness, which are essential for maintaining a competitive advantage in this field. The partnership could also serve as an impetus for further R&D investments, potentially leading to more advanced offerings and a stronger foothold in the industry.

Financial Analyst

An estimated agreement value of $30 million is a significant figure that can impact Datasea's financials and stock performance. Investors will likely scrutinize the company's ability to realize this revenue, considering the execution risks and the actual conversion rate of the agreement into sales. The announcement of ongoing negotiations with other major potential clients further indicates that Datasea is actively seeking to expand its revenue streams, which may be viewed positively by the market.

However, it is important to assess the sustainability of such growth, the competitive landscape of the 5G multimodal communication market in China and Datasea's operational efficiency. The company's ability to scale its services to meet the demands of a larger customer base while maintaining quality will be a critical factor for long-term success. Investors should also consider the regulatory environment in China, which can influence the deployment and adoption of 5G technologies.

New Agreement Expected to Fuel Revenue and with an Estimated Value of $30 Million

BEIJING, Feb. 15, 2024 /PRNewswire/ -- Datasea Inc., (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada incorporated digital technology corporation engaged in innovative business segments for intelligent acoustics and 5G multimodal communication technology in China announced today that on February 2, 2024, Guozhong Times (Beijing) Technology Ltd. ("Guozhong Times"), a subsidiary of the Chinese operating company contractually controlled by the Company, has entered into a Cooperation Agreement (the "Agreement") with Hangzhou Chongda Technology Co., Ltd. ("Chongda") to increase the sales of 5G multimodal communication services in China.

Datasea CEO Zhixin Liu commented, "We are pleased to enter into this new collaboration as it will help to identify potential customers that need our 5G multimodal communication delivery services, and enable us to quickly roll out our unique platform to new customers. We believe that Datasea can capitalize on more opportunities of this nature to generate revenue and it is in line with our mission to become a leading provider of digital technology solutions as well as our unwavering commitment to the 5G multimodal communication market in China. At the same time, the company is negotiating with major potential clients of 5G multimodal communication services and expects to reach more agreements."

Under the Agreement, Chongda can purchase 5G multimodal communication delivery services over the course of the 12 months commencing on February 3, 2024, with an estimated total value of approximately US$ 30 million (approximately RMB 215 million).

Chongda, a leading provider of marketing services, offers high-quality mobile phone plans, prepaid fuel service plans, and prepaid electricity top up plans to tens of thousands of Chinese enterprises, e-commerce platforms and individuals. The Agreement between Guozhong Times and Chongda exemplifies that Guozhong Times is highly active in providing 5G multimodal communication services, data interfaces and a 5G multimodal communication platform for related services and management.

The demand for 5G multimodal communication services in China is high and such demand is expected to continue to rise. Datasea recorded US $18.3 million in revenue from 5G multimodal communication related services in the first and second quarters of 2024 in aggregate, proving its ability to provide customers with efficient and top-notch services. This achievement underscores Datasea's leading market positioning in delivering efficient and customized services to individual and enterprise users.

About Datasea Inc.

Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in innovative industries, Intelligent Acoustics and 5G multimodal communication, especially focusing on ultrasonic, infrasound and directional sound technology. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal communication segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies in intelligent acoustics, utilizing ultrasonic sterilization to combat viruses and prevent human infections, and is also developing innovations in directional sound and medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to mark its global presence. This underlies Datasea's commitment to Intelligent Acoustics and its intent to offer leading edge acoustic solutions to the US market. For additional information, please visit: www.dataseainc.com.

Cautionary Note Regarding Forward-Looking Statements 
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements  (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact: 

Datasea Inc. Investor relations
Email:  investorrelations@shuhaixinxi.com
             sunhezhi@shuhaixinxi.com

Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

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SOURCE Datasea Inc.

FAQ

What is the estimated value of the Cooperation Agreement between Datasea Inc. and Hangzhou Chongda Technology Co., Ltd.?

The estimated total value of the Cooperation Agreement is approximately US$30 million.

Who is the subsidiary of the Chinese operating company that entered into the Cooperation Agreement with Chongda?

Guozhong Times (Beijing) Technology Ltd. is the subsidiary of the Chinese operating company that signed the Cooperation Agreement with Chongda.

What type of services does Chongda provide?

Chongda offers high-quality mobile phone plans, prepaid fuel service plans, and prepaid electricity top-up plans to Chinese enterprises, e-commerce platforms, and individuals.

What revenue did Datasea record from 5G multimodal communication services in the first and second quarters of 2024?

Datasea recorded US$18.3 million in revenue from 5G multimodal communication services in the first and second quarters of 2024 combined.

What is Datasea's market positioning in delivering services to individual and enterprise users?

Datasea's market positioning is highlighted by its ability to provide efficient and customized services to individual and enterprise users.