BEIJING - Datasea Inc. (NASDAQ:DTSS), a Nevada corporation specializing in high-tech intelligent acoustics and 5G-Artificial Intelligence (AI) communication technology, has announced three new sales agreements through its Chinese subsidiaries, which are projected to contribute significantly to the company's revenue growth for the fiscal year 2025. The agreements, valued at approximately $61.7 million, include two for the 5G-AI communications segment and one for high-tech acoustic products.
The company's CEO, Ms. Liu Zhixin, expressed optimism about the new customer orders for both the 5G AI communications and acoustics products segments. She believes that the core AI functionality of these segments will drive further technological innovation and increase market share.
The agreements are detailed as follows: Guozhong Haoze, a subsidiary of Datasea, signed a deal on May 15, 2024, with Shenzhen Juhaowan Technology Co., Ltd. for 5G AI multimodal communication services, estimated at $30 million.
Another agreement was signed on May 13, 2024, by Heilongjiang Xunrui, another subsidiary, with Shenzhen Yuzhongqing Technology Co., Ltd., also for 5G AI multimodal communication services, with a similar estimated value.
Additionally, on June 8, 2024, Shuhai Jingwei, a Datasea subsidiary, entered into a sales contract with Tianjin Qianli Culture Communication Co., Ltd. for approximately 20,000 units of "Tianer" and "Star Sleep" branded acoustic products, amounting to $1.7 million.
Datasea Inc. operates in the sectors of Intelligent Acoustics and 5G multimodal communication, focusing on technologies like ultrasonic sterilization and directional sound.
The company's R&D in AI serves as the backbone for its products and services. In July 2023, Datasea expanded its global presence by establishing a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, USA. The information presented in this article is based on a press release statement and does not constitute an endorsement of Datasea's claims.
In other recent news, Datasea Inc., a digital technology company, has been involved in several significant developments. The company has entered into a partnership with iPower Inc., aiming to enhance product distribution in the US online market.
This collaboration will leverage Datasea's expertise in acoustic high-tech and 5G-AI multimodal communication technology and iPower's established online merchandising and logistical capabilities.
In another development, Datasea's CEO, Zhixin Liu, plans to acquire up to $3 million of the company's common stock using personal funds over the next 12 months, citing her belief in the company's growth potential. This acquisition plan follows regulatory compliance and market conditions.
Furthermore, Datasea has inked a sales agreement worth approximately $8.45 million with Shenzhen Xiaoranfang Marketing Co., Ltd. for the sale of its acoustic high-tech products.
This deal is expected to contribute significantly to the company's future revenue growth. These developments reflect recent activities within Datasea, as the company continues to expand and strengthen its operations.
InvestingPro Insights
Datasea Inc. (NASDAQ:DTSS) has recently made headlines with its new sales agreements, which are expected to boost the company's revenue growth. The market is responding to these developments, and the latest data from InvestingPro shows some intriguing figures. Datasea's market capitalization stands at $17.8 million, reflecting the size of the company in the competitive tech industry. Despite the optimism surrounding the new deals, it's important to note that the company's P/E ratio is at -0.87, indicating that it has not been profitable over the last twelve months.
One of the InvestingPro Tips highlights that Datasea has been quickly burning through cash, which could be a concern for investors looking for long-term stability. Additionally, the stock is known for its high price volatility, which might be attractive for some traders but can also suggest a higher risk profile. With a Price / Book ratio of 10.99 as of Q3 2024, the valuation appears steep, especially when considering the company's recent performance and the absence of dividends to shareholders.
For those interested in a deeper analysis, there are 12 additional InvestingPro Tips available on InvestingPro's platform, which could provide further insights into DTSS's financial health and stock performance. Prospective investors and current shareholders may find these tips useful for making informed decisions. To access these tips and more detailed metrics, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/DTSS.
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