Datasea Enters into a $22.3 Million Purchase Agreement to Provide 5G Messaging Services

Rhea-AI Summary

Datasea Inc. (NASDAQ: DTSS) announced a significant purchase agreement between its subsidiary, Guohao Century, and Hangzhou Runsheng Network Technology on July 18, 2022. This agreement, valued at approximately USD 22.3 million, highlights an increasing demand for Datasea's 5G messaging services. Guohao Century will provide services including recharge payment options and telecommunication value-added services, thereby facilitating enhanced marketing efforts for Hangzhou Runsheng. CEO Zhixin Liu emphasized that this partnership positions Datasea favorably for achieving revenue and profitability goals.

Positive

• The agreement with Hangzhou Runsheng is valued at approximately USD 22.3 million.
• Increased demand for 5G messaging services is evidenced by the purchase agreement.
• The partnership allows Datasea to enhance marketing efforts for large clients, potentially improving revenue.

Negative

• None.

BEIJING, July 18, 2022 (GLOBE NEWSWIRE) -- Datasea Inc., (NASDAQ: DTSS) ("Datasea" or the "Company"), incorporated in Nevada on September 2014, is a digital technology corporation engaged in three converging and innovative business segments: 5G messaging, acoustic intelligence, and smart city technology in China. Today, the Company announced that Guohao Century (Beijing) Technology Ltd. ("Guohao Century"), a subsidiary of the Chinese operating company contractually controlled by the Company, has entered into a purchase agreement with Hangzhou Runsheng Network Technology Ltd. ("Hangzhou Runsheng”), a leading marketing service provider offering a suite of powerful marketing automation features to enterprises including China UnionPay, Ping An Group, and JD.com, etc. The agreement reflects an acceleration in demand for Datasea’s 5G messaging services and penetration in the 5G messaging market.

Datasea provides 5G messaging services to enhance communication workflows and drill deep into the brands and organizations on Hangzhou Runsheng’s new client wishlist. With the aim of delivering timely, consistent, and compelling communications to convert browsers to buyers, Guohao Century will act as the supplier and provide: 1) 5G messaging recharge payment services of China Mobile, China Unicom, and China Telecom; 2) A technical interface as a transmission channel to track transaction data; and 3) 5G short messages and telecommunication value-added services for Hangzhou Runsheng. The service fee will be prepaid by Hangzhou Runsheng and the total purchase amount will be approximately USD 22.3 million (RMB 150 million).

Commenting on today's announcement, Zhixin Liu, CEO of Datasea stated, “We are delighted to announce the agreement with Hangzhou Runsheng and create multi-channel and targeted marketing campaigns to help them optimize lead generation, customize clients and prospect communications, and automate marketing activities. Datasea’s 5G messaging get companies more shots on operational goals by sourcing perfect fit prospects and advancing them to communications that fill the sales funnel. The continuous business development and operation in 5G messaging business have put our company in a strong position and set the stage for reaching our revenue and profitability goals.”

About Datasea Inc.

Datasea Inc., through its variable interest entity, Shuhai Information Technology Co., Ltd., a digital technology company in China, engages in three converging and innovative industries: smart city, acoustic intelligence and 5G messaging. Datasea leverages facial recognition technology and other visual intelligence algorithms, combined with cutting-edge acoustic and non-visual intelligence algorithms, to provide smart city solutions that meet the security needs of residential communities, schools and commercial enterprises. Most recently, in response to the growing utilization of 5G technologies and the overall initiative to utilize Datasea’s technology capabilities to expand business coverage and revenue resources, Datasea has also strategically expanded business coverage to 5G messaging and smart payment solutions. 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. Datasea routinely posts important information on its website.

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:

International Elite Capital Inc.
Annabelle Zhang
Telephone: +1(646) 866-7989
Email: Datasea@iecapitalusa.com

FAQ

What is the purchase agreement between Datasea and Hangzhou Runsheng about?

Datasea's subsidiary signed a purchase agreement with Hangzhou Runsheng to provide 5G messaging services valued at approximately USD 22.3 million.

How much is the deal between Datasea and Hangzhou Runsheng worth?

The total purchase amount of the agreement is approximately USD 22.3 million.

When was the partnership between Datasea and Hangzhou Runsheng announced?

The partnership was announced on July 18, 2022.

What services will Guohao Century provide to Hangzhou Runsheng?

Guohao Century will provide 5G messaging recharge payment services, a technical interface for transaction data, and telecommunication value-added services.

What market segment is Datasea focusing on with this agreement?

Datasea is focusing on the 5G messaging market with this agreement.