Datasea secures $100 million in new 5G-AI contracts

BEIJING - Datasea Inc. (NASDAQ:DTSS), a technology firm specializing in 5G and AI services, has announced the signing of two service contracts worth up to $100 million. These 12-month agreements with Qingdao Ruizhi Yixing and Qingdao Dong’an underscore the company’s growth and customer retention in the digital services sector. The contracts represent significant potential revenue for the micro-cap company, which currently has a market capitalization of approximately $20 million. According to InvestingPro data, Datasea has demonstrated strong revenue growth of 113% over the last twelve months.

The contracts, each valued at $50 million, involve the provision of customized 5G-AI digital services, including data top-up solutions and AI-powered communication tools. The renewal with Qingdao Ruizhi Yixing, a long-standing partner, and the addition of Qingdao Dong’an as a new client, reflect confidence in Datasea’s offerings.

Datasea’s CEO, Zhixin Liu, highlighted the importance of these agreements for the company’s revenue targets and their role in maintaining high growth into the fiscal year 2026. Liu emphasized the customer loyalty and the strength of Datasea’s 5G-AI solutions in the Chinese market. While the company has shown impressive top-line growth, InvestingPro analysis reveals challenges with profitability, including a gross profit margin of just 2.13% and negative EBITDA of $9.55 million in the last twelve months. InvestingPro subscribers have access to 10+ additional financial health indicators for DTSS.

The company’s 5G-AI multimodal platform utilizes a proprietary Transformer architecture and distributed AI training methods to integrate data across various modalities for intelligent enterprise solutions. These capabilities cater to a wide range of sectors, including e-commerce and health management.

Datasea, with its core in advanced R&D technology, operates a cloud platform based on AI for its 5G multimodal digital segment. The company also focuses on acoustic high tech to address issues like virus combat and human infection prevention, expanding its reach into medical ultrasonic cosmetology.

The press release also contained forward-looking statements regarding the company’s expectations and market conditions, which are subject to risks and uncertainties that could cause actual results to differ from those projected.

This news is based on a press release statement from Datasea Inc., and it reflects the company’s current contracts and strategic positioning in the 5G-AI market. The stock has shown recent momentum with a 20.3% return over the past week, though InvestingPro’s Fair Value analysis suggests the stock may be overvalued at current levels. The company’s financial health metrics, including a current ratio of 0.64, indicate potential liquidity challenges that investors should monitor.

In other recent news, Datasea Inc. announced an anticipated third-quarter revenue of approximately $51.9 million for the fiscal year ending March 31, 2025. This represents a significant increase of about 164.6% compared to $19.6 million in the same period the previous year. The surge is attributed to the rising demand for the company’s 5G+AI multimodal digital solutions. Datasea’s CEO, Ms. Zhixin Liu, highlighted the strong year-over-year growth and reiterated the company’s goal of achieving an annual revenue target of $90 million.

Additionally, Datasea has been actively expanding its global presence by establishing a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to penetrate the U.S. market. This strategic move aligns with the company’s efforts to enhance its international footprint. The company continues to focus on its core strengths in acoustic high-tech and 5G+AI multimodal digital innovations. Datasea’s recent developments reflect its commitment to leveraging advanced R&D technology to drive long-term shareholder value.

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