With the announcement of new sales agreements, Datasea Inc. (NASDAQ: DTSS) has experienced a significant boost in the value of its stock, which is presently up 22.97% to $5.46. Through its Chinese subsidiaries, Datasea has signed three major deals with a combined value of over $61.7 million. These agreements include the business’s high-tech acoustic devices and 5G-AI communications segments.
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Details Of The Agreements
On May 15, 2024, Datasea’s subsidiary, Guozhong Haoze, finalized a 5G AI Multimodal Communication Agreement with Shenzhen Juhaowan Technology Co., Ltd., a provider of online lifestyle services and applications. This agreement allows Juhaowan to purchase 5G multimodal communication delivery services from Guozhong Haoze over the next 12 months, with an estimated total value of up to $30 million.
The second agreement, signed on May 13, 2024, involves Datasea’s Heilongjiang Xunrui subsidiary and Shenzhen Yuzhongqing Technology Co., Ltd., a company specializing in internet services. This agreement also enables Yuzhongqing to procure 5G multimodal communication delivery services from Heilongjiang Xunrui over a 12-month period, with an estimated total value of up to $30 million.
The third agreement, finalized on June 8, 2024, was established through Datasea’s Shuhai Jingwei subsidiary with Tianjin Qianli Culture Communication Co., Ltd., a provider of internet promotion and marketing services. This agreement involves the purchase of approximately 20,000 units of Datasea’s “Tianer” and “Star Sleep” branded products, including air disinfection machines, restroom deodorization and disinfection devices, and sleep aids, by December 31, 2024. The total contract value is approximately $1.7 million.
Strategic Implications And Market Impact
These new agreements are anticipated to significantly boost customer orders for Datasea’s 5G AI communications and acoustic products segments. Both business units are gaining remarkable traction due to their high value in the 5G communications and healthy living markets.
Datasea is confident that the core AI functionalities of these segments will drive further technological innovation and expand their market share. Datasea Inc.’s recent strategic moves and successful entry into these lucrative agreements underscore the company’s growth potential and technological prowess, contributing to the notable increase in its stock value.
