BEIJING - Datasea Inc. (NASDAQ:DTSS), a technology firm with a focus on acoustic high tech and 5G-AI communication, has recently signed a Sales Agreement with Shenzhen Xiaoranfang Marketing Co., Ltd. The deal, valued at approximately $8.45 million, involves the sale of Datasea's acoustic high-tech products and is expected to be a significant contributor to the company's future revenue growth.
The agreement was announced today and marks a new phase in Datasea's efforts to enhance the domestic and international sales of its high-tech offerings. Shuhai Jingwei, a wholly-owned subsidiary of Datasea, will see its "Hailijia" and "Star Dream" series of products promoted and sold through various online platforms, including Amazon (NASDAQ:AMZN) in the U.S. and mainstream e-commerce channels in China such as Taobao, JD (NASDAQ:JD).com, and PDD.
These products boast ultrasonic core modules and are designed to provide sterilization, deodorization, air purification, and sleep aid functions.
Xiaoranfang Marketing, recognized for its expertise in e-commerce and new media marketing, will leverage its experience to promote Datasea's products. The firm has a history of operating on international platforms like Amazon, which is expected to aid in reaching a broader market.
Zhixin Liu, CEO of Datasea, expressed optimism about the agreement, citing the potential for market demand and the opportunity for a breakthrough in the company's performance and growth. Similarly, Chen Siqi, CEO of Xiaoranfang Marketing, highlighted the effectiveness of Datasea's products, including a 99.83% rate of killing the COVID-19 virus, and expressed confidence in the success of the partnership.
Datasea, which has its R&D technology as the backbone of its products, has been focusing on ultrasonic sterilization and other innovative solutions in acoustics and 5G-AI multimodal communication. The company's recent establishment of Datasea Acoustics LLC in Delaware in July 2023 underscores its commitment to expanding its global presence and serving the U.S. market with cutting-edge acoustic products.
This news is based on a press release statement.
InvestingPro Insights
Datasea Inc. (NASDAQ:DTSS) has shown a remarkable ability to attract investor interest, as evidenced by its significant return over the last week and strong performance over longer periods, including the last month and three months. This momentum may be seen as a positive indicator in light of the company's latest sales agreement, potentially reflecting market optimism about the company's growth prospects. According to the real-time data provided by InvestingPro, Datasea's one-week price total return stands at 15.58%, with an even more impressive one-month price total return of 58.08% and a three-month price total return of 226.19%.
Despite the recent price upticks, the company faces challenges highlighted by InvestingPro Tips. Datasea is reported to be quickly burning through cash and has not been profitable over the last twelve months. Additionally, the company suffers from weak gross profit margins, which stood at a mere 1.92% for the last twelve months as of Q2 2024. These financial metrics suggest that while the sales agreement may contribute to future revenue growth, the company's fundamental financial health requires careful monitoring.
The market capitalization of Datasea is currently at $23.63 million USD, with a striking revenue growth of 232.5% in the last twelve months as of Q2 2024. However, the company's P/E ratio remains negative at -1.99, reflecting the challenges it faces in achieving profitability. Investors interested in deepening their analysis on Datasea can find a comprehensive set of InvestingPro Tips, including insights on the company's valuation, cash flow yield, and debt levels. For those looking to take advantage of this intelligence, there are 16 additional tips available on InvestingPro, and by using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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