Datasea and its Wholly-Owned Subsidiary Enter into Several Agreements to Provide Smart Community Security Services in China

Rhea-AI Summary

Datasea Inc. (NASDAQ:DTSS) announced agreements to provide Smart Community Security Services in China through its subsidiary Guozhong Haoze. This initiative includes a purchase agreement with Tianjin Yidong Fenxiang for hardware worth RMB 119,640 (~$18,497), enabling contactless body temperature measurement. Collaborations with multiple property management firms will see the installation of security systems and training sessions. The service agreements allow Datasea to earn 90% of advertising revenue from the installed systems, with terms ranging from one to five years.

Positive

• Secured multiple agreements for Smart Community Security Services.
• Total value of hardware contract is approximately $18,497.
• Potential revenue generation through advertising income from security systems.

Negative

• Dependence on successful monetization of advertising revenue.
• Potential operational risks associated with Community Services agreements.

BEIJING, CN / ACCESSWIRE / February 11, 2021 / Datasea Inc. (NASDAQ:DTSS) ("Datasea"), a technology company engaged in providing smart security solutions, smart hardware, and education-related technologies in China, announced today that Datasea and its wholly-owned subsidiary company Guozhong Haoze (Beijing) Technology Ltd. ("Guozhong Haoze"), had signed several agreements to provide Smart Community Security Services (the "Community Services"). Guozhong Haoze was formed in 2020 to develop and market the Company's smart security system products.

Datasea has entered into a purchase agreement with Tianjin Yidong Fenxiang Technology Co., Ltd. (" Yidong Fenxiang") to provide hardware equipment with functions like thermal imaging temperature measurement. As a part of the Community Services, the hardware equipment facilitates contactless body temperature measurement and uses artificial intelligence-based face recognition technology to assist in identifying the potential public healthcare risks. The total value of this engagement is RMB 119,640 (or approximately $18,497).

In addition, Guozhong Haoze has entered into cooperation agreements with Tianjin Zhaofeng Property Management Co., Ltd., Tianjin Jingming Property Management Co., Ltd., Tianjin Aisen Property Management Co., Ltd., Tianjin Qishengyuan Real Estate Investment Co., Ltd., Tianjin Jinghaizhanghe Logistics Co., Ltd., Tianjin Yidingshang Property Management Co., Ltd., Tianjin Hengfushenghong Property Management Co., Ltd., and Tianjin Yiyuan Property Management Co., Ltd.

Under the terms of these agreements, Guozhong Haoze will install public community security systems, perform regular maintenance and host software operations training sessions for eight new customers in nine residential communities they manage, in exchange for 90% of the display-related advertising income generated on the hardware equipment. The public community security systems include: (1) the hardware equipment and (2) the software, which comprises online management platforms for residents and property management teams, and an e-commerce platform for residential communities. The term of the service agreement with Tianjin Yiyuan Property Management Co., Ltd is one year. Except that, the term of each of the other service agreements is five years.

"Datasea's Community Services focus on the needs of households and property management while facilitating intelligent upgrades for the whole community. The company anticipates installing the hardware equipment in community space with high foot traffic and therefore generates revenue from the display-related advertising. The e-commerce platform is designed to bring convenience for residents, and Datasea will charge maintenance fee from the third-party service providers that use the e-commerce platform to generate sales," said Zhixin Liu, CEO of Datasea." We believe in the vitality of the community and business potential surrounding it. We aim to use our technologies to facilitate community engagement."

About Datasea Inc.

Datasea is a technology company in China engaged in providing smart security solutions , smart hardware, and developing education-related technologies. Datasea leverages its proprietary technologies, intellectual property, innovative products, and market intelligence to provide comprehensive and optimized security solutions and education-related technologies to its clients. Datasea has been certified as one of the High Tech Enterprises (jointly issued by the Beijing Science and Technology Commission, Beijing Finance Bureau, Beijing State Taxation Bureau, and Beijing Local Taxation Bureau) and one of the Zhongguancun High Tech Enterprises (issued by the Zhongguancun Science Park Administrative Committee) in recognition of the company's achievement in high technology products. For additional company 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" and similar statements. 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, including Datasea's ability to monetize the advertising and related revenue sources from the Community Services agreements, 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:
International Elite Capital Inc.
Annabelle Zhang
Telephone: +1(646) 866-7989
Email: Datasea@iecapitalusa.com

SOURCE: Datasea Inc.

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FAQ

What is Datasea's recent agreement regarding Smart Community Security Services?

Datasea has signed agreements to offer Smart Community Security Services in China, focusing on smart hardware and security solutions.

What is the financial value of Datasea's hardware agreement?

The hardware agreement with Tianjin Yidong Fenxiang is valued at RMB 119,640, approximately $18,497.

How will Datasea generate revenue from its Smart Community Security Services?

Datasea will earn 90% of the advertising revenue generated from the installed security systems.

What are the terms of Datasea's service agreements?

The service agreements' terms vary from one year to five years, depending on the property management companies involved.