Datasea Hosts Product Promotion Event and Signs Sales Agreement for up to 300,000 High-Tech Acoustic Units

Rhea-AI Summary

Datasea (NASDAQ: DTSS) hosted a product promotion event '5G AI: Unlocking the Future with Sound' on November 23, 2024, showcasing its acoustic high-tech products. During the event, the company signed a strategic sales agreement with Qingrong Digital Chain Technology for up to 300,000 units of acoustic products. The five-year agreement is expected to generate approximately $20.8 million in annual sales. The event, attended by over 200 industry leaders and representatives, featured Datasea's acoustic air sterilizers and sleep aid products. The company also established strategic cooperation with the Tianjin Women Entrepreneurs Association to drive sales in North China.

Positive

• Secured strategic sales agreement worth $20.8M annually for 300,000 acoustic units
• Partnership with Qingrong provides access to thousands of home decoration stores across China
• Strong market interest demonstrated by 200+ industry leaders attending product event

Negative

• None.

Insights

Financial Analyst

This strategic sales agreement marks a significant revenue opportunity for DTSS, with potential annual sales of $20.8 million over five years. For a company with a market cap of just $17.8 million, this deal represents more than 116% of its current market value in annual revenue potential.

However, investors should approach these projections with caution. The agreement states "up to" 300,000 units, indicating this is a maximum rather than a guaranteed commitment. The success will depend on Qingrong's ability to effectively distribute through their home decoration store network and actual market demand. The $69 per unit implied price ($20.8M/300,000 units) seems reasonable for acoustic technology products, but margins and actual sell-through rates will be important metrics to monitor.

Market Research Analyst

The strategic positioning in China's beauty industry through the 5G-AI multimodal platform, combined with the Tianjin Women Entrepreneurs Association partnership, creates multiple growth channels. The focus on both residential and commercial applications for acoustic products shows market diversification.

The distribution strategy through home decoration stores is particularly noteworthy, as it places these acoustic products in a high-traffic, relevant retail environment where consumers are already in a home-improvement mindset. This could drive better conversion rates compared to traditional electronics retail channels. The Tianjin government's support and regional expansion plans in North China provide additional credibility to the growth strategy.

The agreement is expected to generate up to approximately $20.8 million annually

BEIJING, Dec. 2, 2024 /PRNewswire/ -- Datasea Inc. (Nasdaq: DTSS) ("Datasea" or the "Company"), a Nevada digital technology company focused on innovations in acoustic high-tech and 5G AI multimodal digital technologies, today announced that, on November 23, 2024, the Company hosted a product promotion event for its acoustics high-tech products, named "5G AI: Unlocking the Future with Sound. In addition, during the event Datasea entered into a strategic sales agreement with Qingrong Digital Chain Technology Co., Ltd. ("Qingrong") for the sale of up to an aggregate of 300,000 units of the Company's acoustic high-tech products.

Ms. Zhixin Liu, CEO of Datasea, commented, "We are thrilled with the success of our promotion event and the new collaborations that it has fostered. Our acoustic products, supported by innovative technology and a user-centered design, have received strong recognition from the Tianjin government and the Tianjin Women Entrepreneurs Association. Further, the agreement with Qingrong, a key channel partner, represents a significant leap forward for our acoustics segment, and it lays the foundation for a broader market presence, growing product visibility, an increased revenue. The agreement is expected to generate up to approximately $20.8 million (approximately RMB 150 million) in sales annually over the next five years."

The "5G AI: Unlocking the Future with Sound" Promotion Event:

The large-scale promotion event, "5G AI: Unlocking the Future with Sound ", was held at the Haihai Building in the High-Tech Zone of Tianjin, and it showcased Datasea's latest advances in acoustic technology and the Company's 5G-AI multimodal platform. More than 200 industry leaders, channel distributors, and representatives from various associations participated, including the Tianjin High-Tech Zone Women's Federation and the Tianjin Women Entrepreneurs Association.

Key Highlights of the Event:

1. Product Innovation: Introduced Datasea's upgraded Acoustic air sterilizers and Sleep Aid products, along with the Company's 5G-AI multimodal application service platform, which mainly focus the needs of the beauty industry in China.
2. Strong Participation: Over 200 attendees and industry representatives attended, demonstrating strong interest in acoustics technology, with several entities expressing plans to actively expand their offline store channels with the Company's acoustics products.
3. Empowering Women Entrepreneurs: Collaboration with the Tianjin Women Entrepreneurs Association and the High-Tech Zone Women's Federation to promote women-led business ventures, reflecting Datasea's commitment to supporting diverse market opportunities.
4. Strategic Market Entry: The Company signed a strategic cooperation agreement with the Tianjin Women Entrepreneurs Association, providing support for the Company's efforts to drive sales of its products in Tianjin and the greater North China region.
5. Significant Sales Agreement: The Company signed a strategic sales agreement with Qingrong for up to an aggregate of 300,000 acoustic units, emphasizing Datasea's growing market demand and innovative product appeal.

The Sales Agreement with Qingrong

Under the strategic sales agreement with Qingrong, which has a term of five years, Qingrong plans to sell up to an aggregate of 300,000 units of Datasea's acoustic products annually, including air disinfection machines and sleep aids. These products, equipped with ultrasonic core modules, offer powerful sterilization, odor elimination, air purification, and sleep enhancement, suitable for both residential and commercial use. During the term of the agreement, Qingrong will resell these products through its extensive network of thousands of home decoration stores across China.

About Datasea Inc.

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 US 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 value of Datasea's (DTSS) new sales agreement with Qingrong?

The sales agreement with Qingrong is expected to generate approximately $20.8 million (RMB 150 million) in annual sales over the next five years.

How many acoustic units will Datasea (DTSS) supply under the Qingrong agreement?

Under the five-year strategic sales agreement, Qingrong plans to sell up to 300,000 units of Datasea's acoustic products annually.

What products did Datasea (DTSS) showcase at their November 2024 promotion event?

Datasea showcased their upgraded Acoustic air sterilizers, Sleep Aid products, and 5G-AI multimodal application service platform at the event.