BEIJING - Datasea Inc. (NASDAQ:DTSS), a Nevada-based company specializing in acoustic high-tech and 5G AI multimodal digital innovation, with a current market capitalization of $17.29 million, has secured agreements to distribute its products across approximately 263 beauty salons and body care stores in northern China. According to InvestingPro analysis, the company is currently trading below its Fair Value. The agreements, signed by Guozhong Haoze (Beijing) Technology Ltd., a subsidiary of Datasea, with 14 beauty industry service and management companies, aim to boost the company's presence in the region and are projected to generate substantial revenue growth.
The company anticipates the sale of around 140,000 of its acoustic high-tech products by the end of 2025, which includes items such as acoustic air sterilizers and sleep products, alongside the provision of a 5G AI Digital Service System tailored for the beauty industry. This system is expected to enhance the customer experience and service quality in partner stores.
Datasea CEO, Ms. Zhixin Liu, expressed confidence that these partnerships will strategically position the company to market its products effectively and expand the adoption of its digital system within the beauty industry. The agreements are estimated to contribute sales of over $11 million by the end of 2025. Despite impressive revenue growth of 263% in the last twelve months, InvestingPro data shows the company maintains thin gross profit margins of just 1.56%.
The company's strategy includes expanding its customer base to potentially 10,000 beauty and body care stores in provinces such as Tianjin, Hebei, Beijing, and Inner Mongolia over the next 2-5 years. This expansion is intended to drive sales of both acoustic hardware products and the technical services provided by the company's 5G AI Digital System.
Datasea's commitment to technological innovation and market expansion in China's beauty and body care industry underpins its ambition for significant growth and sustained profitability. The information in this article is based on a press release statement from Datasea Inc.
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