Datasea Enters into a Sales Agreement for its Acoustic Products Bringing its Evolutionary Technology to Market in a Strategic Milestone to Develop Rapid Online Sales

Rhea-AI Summary

Datasea Inc. (Nasdaq: DTSS) announces a Sales Agreement with Xiaoranfang Marketing for $8.45 million of acoustic high tech products, aiming to boost revenue growth domestically and internationally.

Insights

Market Research Analyst

The agreement between Datasea and Xiaoranfang Marketing represents a substantial sales commitment that could materially impact Datasea's revenue streams. The specificity of the deal, pegged at $8.45 million, provides a clear forecast of expected revenue, which is a positive signal for investors and analysts monitoring the company's performance. This deal also highlights the potential for Datasea's products in both domestic and international markets, indicating a strategy of aggressive expansion and diversification of sales channels.

Investors should note the significance of the sales channels mentioned, such as mainstream e-commerce platforms in China and Amazon in the U.S. The embrace of e-commerce is a strategic move that aligns with current consumer purchasing trends and the global shift towards online retail. The ability to penetrate the U.S. market, especially through a platform as ubiquitous as Amazon, could offer substantial growth opportunities for Datasea, subject to the competitive dynamics of the acoustic high tech product segment.

Financial Analyst

The announcement of an $8.45 million sales agreement is a robust indicator of Datasea's near-term financial outlook. The revenue from this deal alone could provide a significant boost to the company's financials, depending on the current revenue baseline. Shareholders might expect an uptick in share price as the market digests the news, although the actual impact will depend on the execution of the agreement and the company's ability to meet delivery and quality expectations.

From a valuation perspective, this deal could improve Datasea's price-to-earnings ratio if the additional revenue contributes to net income. However, the cost structure associated with the expansion, the terms of the sales agreement and the capacity of Datasea to fulfill the order without incurring excessive additional costs are important factors that will influence the final financial outcome.

Technology Industry Analyst

The acoustic high tech sector is a niche but growing segment of the technology market. Datasea's focus on 5G-Artificial Intelligence multimodal communication technology could position it at the forefront of a burgeoning industry. The partnership with Xiaoranfang Marketing is an endorsement of Datasea's product offerings and a testament to their market readiness.

However, the success of this deal will hinge on the company's ability to scale production and maintain product quality. The integration of 5G and AI into acoustic products is a complex endeavor and maintaining a competitive edge will require continuous innovation and potentially significant R&D investment. The company's long-term growth will be contingent on its ability to protect its intellectual property and adapt to rapid changes in technology trends.

BEIJING, April 4, 2024  /PRNewswire/ -- Datasea Inc. (Nasdaq: DTSS) ("Datasea" or the "Company"), a digital technology company incorporated in Nevada, dedicated to innovative business in acoustic high tech and 5G-Artificial Intelligence multimodal communication technology in the United States and China, today announced that the Company's wholly-owned subsidiary, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. ("Shuhai Jingwei"), entered into a Sales Agreement (the "Agreement") with Shenzhen Xiaoranfang Marketing Co., Ltd. ("Xiaoranfang Marketing") for the sale of up to approximately $8.45 million (RMB 60 million) of the Company's acoustic high tech products. The signing of this Agreement signifies a new milestone for Datasea in promoting the domestic and international sales of its acoustic high tech products and it is expected to be a key driver of the Company's future revenue growth.

Zhixin Liu, CEO of Datasea, commented, "We are delighted to have signed this Agreement with Xiaoranfang Marketing. This marks a significant milestone in advancing the market promotion and sales of our leading-edge acoustic high tech products. In addition to comprehensive promotion of our "Hailijia" and "Star Dream" series of high-tech acoustic products on mainstream e-commerce channels in China, this partnership is also expected to drive online sales in the U.S. market, including on platforms such as Amazon. We are optimistic about the market demand and prospects for orders, and believe this will provide a new breakthrough and momentum for the Company's performance and growth."

According to the Agreement, Xiaoranfang Marketing has agreed to conduct online sales of the Company's "Hailiji"' brand's air disinfection machines and closet and bathroom deodorization and disinfection products, and its "Star Dream" brand of sleep aids, among other series of acoustic high tech products, in both the Chinese and international markets. This includes traditional mainstream e-commerce platforms such as Taobao, JD.com, and PDD in China, and emerging new media platforms, such as Douyin, Kuaishou, and Little Red Book. Xiaoranfang Marketing will also access international channels like Amazon in the U.S. to promote the Company's products.

The "Hailijia" and "Star Dream" series of acoustic high tech products are equipped with ultrasonic core modules, and feature core functions that provide powerful sterilization, odor elimination, air purification, and sleep aids which can be used in household and work environments to provide  clean, safe and healthy living environments.

Xiaoranfang Marketing is a prominent marketing and promotion firm in China with extensive experience in e-commerce, new media marketing and product sales. They have substantial expertise in online sales channels through mainstream Chinese internet platforms and new media platforms as well as experience in operating and managing international Amazon platforms. The Company believes that Xiaoranfang Marketing is a perfect fit for the promotion and sales of the Company's high tech acoustic products in both the domestic and the international markets.

Chen Siqi, CEO of Xiaoranfang Marketing, stated, "We are excited to collaborate with Datasea as their "Hailijia" and "Star Dream" series of acoustic high tech products are uniquely engineered to kill a variety of bacteria and viruses, including COVID-19 and H1N1, using sound wave technology. Datasea's rate for killing the COVID-19 virus is an astonishing 99.83%, providing users with clean and safe living environments. We are confident that our experience with digital sales promotion and online sales channels, with our large customer base, will promote sales of Datasea's products and achieve a win-win situation."

About Datasea Inc.

Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in its innovative industries, Acoustics and 5G-AI 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, precision manufacturing in its Acoustics business, 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 hi-tech and its intent to offer leading edge acoustic products and 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 Contacts: 

Datasea 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 recent announcement made by Datasea Inc. (DTSS)?

Datasea Inc. (DTSS) announced a Sales Agreement with Xiaoranfang Marketing for the sale of up to approximately $8.45 million of acoustic high tech products.

Who is the subsidiary of Datasea Inc. (DTSS) involved in the Agreement?

The Company's wholly-owned subsidiary, Shuhai Jingwei (Shenzhen) Information Technology Co., ('Shuhai Jingwei'), entered into the Sales Agreement.

What is the expected impact of the Agreement on Datasea Inc. (DTSS)?

The Agreement is expected to be a key driver of the Company's future revenue growth by promoting the sales of its acoustic high tech products domestically and internationally.

Which products of Datasea Inc. (DTSS) will be promoted through this partnership?

The 'Hailijia' and 'Star Dream' series of high-tech acoustic products of Datasea Inc. (DTSS) will be promoted through this partnership.