Datasea Announces Continued Expansion with Agreements to Place its Acoustic High-Tech Products in an Additional 200 Beauty Stores in Northern China

Rhea-AI Summary

Datasea (NASDAQ: DTSS) has expanded its acoustic high-tech business through new agreements with 12 health management companies in Tianjin, China. These agreements will place Datasea's products in 200 additional beauty stores across Northern Chinese markets, expecting to generate sales of 120,000 units and revenue of $8.2 million by year-end 2025.

This expansion follows previous agreements with 263 beauty salons signed in December 2024, targeting 140,000 units and $11 million in revenue. The combined agreements now cover 463 stores with projected total sales of 260,000 units and revenue of $19 million by year-end 2025.

The product lineup includes acoustic sterilizers, sleep products, and 5G+AI Digital Service Systems for the beauty industry. The company forecasts full-year revenue of $90 million for its fiscal year ending June 30, 2025, and plans to expand to up to 10,000 beauty and body care locations across Northern China.

Positive

• Secured agreements for product placement in 200 additional beauty stores
• Projected additional revenue of $8.2 million by year-end 2025
• Total projected revenue of $19 million from 463 stores by year-end 2025
• Forecasted full-year revenue of $90 million for fiscal year 2025

Negative

• None.

Insights

Financial Analyst

The announced expansion represents a compelling growth trajectory for Datasea, with the total store count reaching 463 locations and projected revenue of $19 million by year-end 2025. This projection is particularly noteworthy given the company's current market capitalization of approximately $14.7 million, suggesting significant potential upside if execution meets expectations.

Breaking down the unit economics: The average revenue per unit calculates to approximately $73 ($19 million/260,000 units), indicating a mass-market pricing strategy. The revenue per store projection of approximately $41,000 annually ($19 million/463 stores) appears reasonable for the beauty salon segment in Northern China.

However, investors should consider several critical factors:

• The company's ambitious target of scaling to 10,000 beauty and body care locations represents a 2,060% increase from current levels, raising questions about operational capacity and capital requirements.
• The projected $90 million revenue for fiscal year 2025 (ending June 30) implies significant acceleration from current levels and would require flawless execution.
• The dual revenue stream from hardware sales (acoustic products) and software services (5G+AI Digital System) could provide recurring revenue opportunities but may face integration challenges in traditional beauty salon settings.

The expansion strategy in Northern China's tier-1 cities like Tianjin demonstrates strong market validation, but investors should monitor quarterly execution metrics and customer adoption rates to verify the sustainability of this growth trajectory.

Technology Industry Analyst

Datasea's technology stack represents a sophisticated convergence of acoustic engineering and artificial intelligence, creating potential barriers to entry in the beauty salon market. The integration of ultrasonic sterilization technology with 5G-enabled AI systems demonstrates a forward-thinking approach to digitizing traditional beauty services.

The technology implementation presents several strategic advantages:

• The 5G+AI Digital System enables data-driven personalization and operational efficiency, potentially increasing customer retention and reducing operational costs for salon partners.
• Non-contact sleep aid products leverage acoustic technology for wellness applications, opening additional revenue streams beyond traditional beauty services.
• The digital infrastructure allows for centralized management and data analytics across multiple locations, creating network effects as the system scales.

However, the technological complexity presents implementation considerations:

• The success of the AI system will depend heavily on data collection and algorithm optimization across diverse customer bases.
• Training requirements for beauty salon staff to effectively utilize the technology stack could impact adoption rates.
• Integration with existing salon management systems and workflows may require significant customization efforts.

The scalability of the technology platform across 10,000 locations will test both the robustness of the system architecture and the company's ability to provide consistent service quality across a distributed network.

With the New Agreements, Products to be Placed in a Total of 463 New Stores with 
Total Projected Sales of 260,000 Units and Revenue of $19 Million 
Expected by Year End 2025

BEIJING, Jan. 23, 2025 /PRNewswire/ -- Datasea Inc. (Nasdaq: DTSS), a Nevada-based digital technology company specializing in acoustic high-tech and 5G AI multimodal digital innovation ("Datasea" or "the Company"), today announced a major update for its acoustic high-tech business. Following the successful signing of agreements with 263 beauty salons and body care stores in Northern China at the end of December 2024, Guozhong Haoze (Beijing) Technology Ltd. ("Guozhong Haoze"), a subsidiary of the Chinese operating company contractually controlled by the Company, has now entered into 12 additional agreements with health management companies in Tianjin, one of the largest cities in China, further expanding its reach in January 2025 (the "New Agreements"). The Agreements will place Datasea's acoustic high-tech products in an additional 200 beauty stores across key Northern Chinese markets, including Hebei Province, which are expected to drive sales of 120,000 additional units and provide added revenue of approximately $8.2 million by year end 2025.

Pursuant to the New Agreements, the Company is targeting the sale of an estimated 120,000 units of Datasea's acoustic high-tech products which comprise acoustic sterilizers, sleep products and 5G+AI Digital Service Systems specifically developed for the beauty industry. The New Agreements demonstrate the growing market acceptance of Datasea's acoustic high-tech products and the successful implementation of its strategic plan to position these products in certain sectors including the beauty and body care industry.

As of today, Datasea has placed its acoustic high-tech products in total 263 beauty salons and body care stores targeting a projected sale of 140,000 units and revenue of $11 million by calendar year end 2025.

Ms. Zhixin Liu, CEO of Datasea, commented, "We are very pleased to announce our latest progress in the dynamic scaling of our acoustic high-tech products. We also anticipate developing additional avenues for our innovative healthy-living systems which will further amplify our sales of acoustic high-tech segment. The positive response from our new partners validates the market's confidence in our acoustic high-tech products and 5G+AI Digital Systems, and we expect that this momentum will continue to accelerate throughout 2025. We believe that those new Agreements will help us achieve our forecasted full-year revenue of $90 million for our fiscal year ended June 30, 2025."

Key Aspects of the New Agreements

1. Increased Reach for Acoustic High-Tech Products
• Datasea partners with 12 health management companies in Tianjin and Hebei to place its products in 200 additional beauty stores.
• The primary products in the agreements include the Ultrasonic Sterilizer and the Non-Contact Sleep Aid.
• These advanced acoustic products aim to improve service quality and enhance customer experience in partnered stores.
2. Expansion of 5G+AI Digital Beauty System
• The Company will continue to deploy its 5G+AI Digital System tailored for beauty industry needs, offering personalized customer services, data-driven marketing, and efficient store management.
• The system enables optimized service workflows, AI-powered customer insights, and enhances retail store operations, helping stores offer more customized and efficient services to their customers.
3. Revenue Growth and Market Validation
• New agreements to drive sales of 120,000 units with a projected additional revenue of approximately $8.2 Million by year end 2025.
• This expansion builds on the momentum from the 263 stores announced on January 6, 2025 and reinforces the positive market reception of Datasea's products and systems.

Foundation for Continued Growth and Expansion

The Company remains focused on expanding its footprint across Northern China, with plans to increase the number of partnered stores up to 10,000 beauty and body care locations in the coming years, covering additional provinces and Cities including Beijing and Inner Mongolia. Datasea aims to continue driving sales growth in its acoustic high-tech product segment while delivering value through its 5G+AI Digital System, which enhances customer service and helps its partners optimize business operations.

About Datasea Inc.

Datasea is a leading provider of products, services, and solutions for enterprise and retail customers in converging and innovative industries, Acoustics High tech, and 5G+AI multimodal digital platform, 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 digital 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 Acoustics High tech and its intent to offer leading edge acoustic solutions to the U.S. 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

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 projected revenue from DTSS's new beauty store agreements in Northern China?

The new agreements are expected to generate approximately $8.2 million in revenue by year-end 2025 from 200 additional beauty stores.

How many total stores will carry DTSS acoustic products after the latest expansion?

After the latest expansion, DTSS products will be placed in a total of 463 stores across Northern China.

What is DTSS's total projected unit sales target for 2025 from beauty store agreements?

DTSS projects total sales of 260,000 units from all beauty store agreements by year-end 2025.

What is Datasea's (DTSS) revenue forecast for fiscal year 2025?

DTSS forecasts full-year revenue of $90 million for its fiscal year ending June 30, 2025.

What products will DTSS distribute through the beauty store agreements?

DTSS will distribute acoustic sterilizers, sleep products, and 5G+AI Digital Service Systems specifically developed for the beauty industry.