BEIJING - Datasea Inc. (NASDAQ:DTSS), a Nevada-incorporated digital technology company, has announced a Manufacturing Cooperation Agreement with Broadway Precision Technology, Ltd., a subsidiary of Shanghai Yongli Belt Industry Co., Ltd. (300230.SZ). The agreement, focused on the production of Datasea's upgraded intelligent acoustic deodorization and disinfection products, is set to align the company's manufacturing schedule with market and sales demands.
Zhixin Liu, CEO of Datasea, expressed confidence in the collaboration with Broadway to enhance the production and marketing of their high-tech intelligent acoustic products. The partnership is expected to support ongoing negotiations with major customers and lead to future corporate growth. Datasea's products, featuring ultrasonic modules for odor removal, sterilization, and air purification, aim to set industry standards in quality.
Broadway, with facilities across China, Thailand, Mexico, and the US, will utilize advanced production technology and high-quality materials for Datasea's products. Immediate functional testing and international safety certifications are planned to facilitate the products' entry into the U.S. and China markets.
The company has established partnerships with U.S. channel partners and is in discussions with large customers, including hotels and schools. In China, distribution will occur through direct sales, agents, and livestreaming e-commerce.
Datasea, specializing in acoustic and 5G-AI multimodal communication technology, focuses on ultrasonic, infrasound, and directional sound technology. The company's R&D serves as the backbone for its products, which are utilized in combating viruses and in medical ultrasonic cosmetology. In July 2023, Datasea established Datasea Acoustics LLC in Delaware, highlighting its commitment to the U.S. market.
This article is based on a press release statement.
InvestingPro Insights
Datasea Inc. (NASDAQ:DTSS) has made headlines with its recent Manufacturing Cooperation Agreement, indicating a strategic move to align its production with market demands. As the company navigates through its growth phase, it's important to consider some financial metrics and market performance data that could influence investor decisions.
The company's market capitalization stands at a modest 20 million USD, reflecting its position in the market. Despite the challenges, Datasea has shown an impressive revenue growth of 232.5% over the last twelve months as of Q2 2024, signaling potential in its business model and market acceptance of its products.
Investors should note that the company's stock has experienced significant price volatility, as indicated by a substantial 187.99% return over the last three months. This could be a sign of investor confidence in the company's recent strategic moves, including the Manufacturing Cooperation Agreement and expansion into the U.S. market.
Two key InvestingPro Tips to consider for Datasea include:
1. The company is quickly burning through cash, which is a crucial factor for investors to watch, as it may affect the company's ability to sustain operations and finance growth initiatives.
2. Datasea's stock has taken a big hit over the last week, with a price total return of -8.71%. This could be an opportunity for investors to buy in at a lower price, especially given the company's recent positive revenue growth figures.
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