Datasea Enters into Manufacturing Agreement to Accelerate Production and Deployment of its Hi-Tech Intelligent Acoustic Products
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Insights
The partnership between Datasea Inc. and Broadway Precision Technology, Ltd. is a strategic move aimed at enhancing production capabilities for Datasea's high-tech intelligent acoustic deodorization and disinfection products. This collaboration is expected to streamline the manufacturing process, aligning it closely with market and sales demands, which could result in improved efficiency and potentially higher profit margins. The synchronization of production with sales forecasts is a common strategy to minimize inventory costs and reduce the risk of overproduction.
Furthermore, the focus on quality and the pursuit of industry-leading standards could position Datasea favorably in the competitive landscape. The partnership with Broadway, a contract manufacturer for reputable international brands, might provide Datasea with access to advanced production technology and quality materials, which is critical for maintaining a strong brand reputation. The emphasis on functional testing and international safety certifications is also a positive indicator for the company's commitment to compliance and marketability, particularly in the U.S. and China markets.
Broadway's extensive manufacturing capabilities, with a workforce of over 4,000 and significant equipment resources, suggest a robust supply chain that can support Datasea's production needs. This is particularly relevant for Datasea's expansion plans in the U.S. and China. Efficient supply chain management is important for technology companies, especially when dealing with innovative products that require high-quality materials and precision manufacturing.
Additionally, the mention of negotiations with major customers, such as hotels and schools, indicates that Datasea is targeting large-scale distribution channels. This could lead to volume orders, necessitating a strong supply chain to fulfill these orders promptly. The direct sales strategy, coupled with distribution agents and livestreaming e-commerce in China, reflects a diversified approach to market penetration, which can help mitigate risks associated with single-channel distribution.
Investors might view the announcement of the Manufacturing Cooperation Agreement as a positive development for Datasea's growth prospects. The ability to scale production to meet the anticipated demand for its upgraded products could be a key driver for revenue growth. However, investors should also consider the capital expenditures associated with ramping up production and the implications for cash flow. The financial terms of the agreement were not disclosed, which leaves questions about the investment required and the potential impact on Datasea's financials.
Additionally, the entry into the U.S. market through partnerships with channel partners like Meglio Interiors LLC suggests a strategic approach to distribution, which could facilitate market entry and brand recognition. However, the success of these partnerships and discussions with large customers will ultimately hinge on the company's ability to deliver a competitive product that meets market expectations. The long-term financial impact will depend on the market's reception of the products and the efficiency of the production and distribution processes.
Zhixin Liu, CEO of Datasea, commented, "We are very pleased to enter into the Agreement with Broadway as we believe it will accelerate the production and marketing of our hi-tech intelligent acoustic products while also supporting product orders currently under negotiation with major customers. We are confident in the market demand for our newly upgraded products and believe that this will lead to future corporate growth. As a global pioneer and developer of hi-tech acoustic intelligent products, Datasea's goal is to advance our proprietary acoustic intelligent solutions, expand our domestic and foreign markets, and provide customers with excellent products and services."
According to the Agreement, Broadway will provide injection molding and production services for the Company newly upgraded hi-tech intelligent deodorization and disinfection models. The manufacturing schedule of the company's products will be synchronized with our market and sales demands, facilitating ongoing negotiations with several key clients for product orders which we expect to sign in the near-term.
Datasea's newly upgraded intelligent deodorization and disinfection products are equipped with an ultrasonic core module featuring functions such as odor removal, powerful sterilization, air purification, and quiet operation for superior hygiene for both homes and offices. Broadway will use its most advanced production technology and high-quality materials to ensure that the quality of the Company's products achieves industry-leading standards. Functional testing of the new products, to include international safety certifications, will be immediately initiated upon production of the products to facilitate marketing and sales of its newly upgraded products in the
For distribution of its newly upgraded hi-tech intelligent deodorization and disinfection products into the U.S. market, the Company has established partnerships with channel partners including Meglio Interiors LLC in
Broadway is a wholly-owned subsidiary of Yongli. Broadway has production facilities in
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
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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
Investor and Media Contacts:
Datasea Investor Relations
Email: investorrelations@shuhaixinxi.com
sunhezhi@shuhaixinxi.com
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david.rudnick@preceptir.com
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