Big Tree Cloud Secures First Batch of AI-Enabled Enterprise Platform Development Contracts

Rhea-AI Summary

Big Tree Cloud (NASDAQ: DSY) announced initial progress in its AI enterprise business, signing technical service agreements with a total contract value of approximately RMB 4.5 million (about US$620,000) on Feb 23, 2026.

The deals cover AI platform development, long-term framework collaborations, customized project delivery, and ongoing maintenance across enterprise clients including a strategic partner and an education-sector customer. Platforms are built for B2B deployment with B2C-facing applications such as an AI learning platform for students and young professionals.

Positive

• Signed initial technical service agreements totalling RMB 4.5 million
• Contracts include long-term framework collaborations, custom development, and maintenance
• Developing an AI learning platform targeting university students and young professionals

Negative

• Reported contracts are described as initial progress with a modest total value (~US$620,000)

News Market Reaction – DSY

-4.83%

4 alerts

-4.83% News Effect

+2.1% Peak Tracked

-20.0% Trough Tracked

-$926K Valuation Impact

$18M Market Cap

0.2x Rel. Volume

On the day this news was published, DSY declined 4.83%, reflecting a moderate negative market reaction. Argus tracked a peak move of +2.1% during that session. Argus tracked a trough of -20.0% from its starting point during tracking. Our momentum scanner triggered 4 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $926K from the company's valuation, bringing the market cap to $18M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

AI contract value: RMB 4.5 million AI contract value (USD): US$620,000 Net loss: US$32.5 million +5 more

8 metrics

AI contract value RMB 4.5 million Initial AI technical service agreements for enterprise clients

AI contract value (USD) US$620,000 Approximate total for initial AI enterprise contracts

Net loss US$32.5 million Year ended June 30, 2025 (Form 20-F)

Operating cash flow US$6.5 million negative Year ended June 30, 2025 (Form 20-F)

Shares outstanding 86,972,928 shares As of June 30, 2025 (Form 20-F)

Registered direct shares 8,064,516 shares Registered direct offering at $0.62 per share (Sep 30, 2025)

Gross proceeds US$5.0 million Registered direct offering (Sep 30, 2025)

Offering price $0.04 per share Prospectus supplement equity offering (424B5, Sep 30, 2025)

Market Reality Check

Price: $3.37 Vol: Volume 225,477 is 1.04x t...

normal vol

$3.37 Last Close

Volume Volume 225,477 is 1.04x the 20-day average of 216,788. normal

Technical Price 0.1786 is well below 200-day MA of 0.89 and 97.56% below 52-week high.

Peers on Argus

DSY gained 1.3% with modestly above-average volume while sector peers showed mix...

DSY gained 1.3% with modestly above-average volume while sector peers showed mixed, generally small moves and no momentum flags, suggesting a stock-specific reaction to the AI contract wins rather than a broad Consumer Defensive move.

Previous AI Reports

1 past event · Latest: Jan 02 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Jan 02	AI expansion & hires	Positive	+8.3%	Announced AI business expansion, new leadership roles, and strategic talent additions.

Pattern Detected

The only prior AI-tagged announcement in the last six months saw a positive price reaction of 8.26%, indicating that AI-related strategic updates have previously coincided with upbeat trading for DSY.

Recent Company History

Recent news shows DSY simultaneously restructuring its capital base and pivoting strategically. In January 2026, it announced AI business expansion and key management changes, which coincided with a 8.26% gain. In early January 2026, Nasdaq deficiency notices highlighted listing-risk pressures and a compliance deadline of June 29, 2026. Subsequent Class A/B share structure and 1-for-20 consolidation announcements in February 2026 were followed by double-digit declines, underscoring sensitivity to corporate-structure actions versus growth narratives like AI.

Historical Comparison

+8.3% avg move · Prior AI-tagged news on Jan 2, 2026 combined strategic AI expansion with leadership changes and saw ...

AI

+8.3%

Average Historical Move AI

Prior AI-tagged news on Jan 2, 2026 combined strategic AI expansion with leadership changes and saw a 8.26% move, framing today’s AI contract win as another step in the same growth track.

AI-related disclosures progressed from announcing new AI business lines and leadership on Jan 2, 2026 to today’s concrete B2B AI platform contracts, indicating a shift from strategic setup toward early commercial execution.

Market Pulse Summary

This announcement highlights DSY’s first concrete AI enterprise contracts, totaling about RMB 4.5 mi...

Analysis

This announcement highlights DSY’s first concrete AI enterprise contracts, totaling about RMB 4.5 million (about US$620,000), linking its earlier AI expansion plans to initial B2B revenue opportunities. The stock remains far below its 7.33 52-week high and under the 0.89 200-day MA, against a backdrop of a US$32.5 million net loss and Nasdaq deficiency notices. Investors may watch for follow-on AI wins, revenue scaling, and listing-compliance updates.

Key Terms

ai, b2b, b2c, market value of listed securities, +4 more

8 terms

ai technical

"AI business has made initial progress in technology development and services"

Artificial intelligence (AI) is technology that enables machines to mimic human thinking and learning, allowing them to analyze information, recognize patterns, and make decisions. For investors, AI matters because it can improve how businesses operate, create new products, or identify opportunities faster and more accurately than humans alone, potentially impacting company success and market trends.

b2b technical

"technology development and services for enterprise clients (B2B)"

Business-to-business (B2B) describes companies that sell products or services to other businesses rather than to individual consumers. For investors, B2B models often mean larger, repeatable contracts and revenue tied to corporate budgets, which can produce steadier, more predictable cash flow; think of a parts supplier selling regular batches to a factory rather than a shop selling single items to walk-in customers, so customer concentration and contract length matter.

b2c technical

"clients who serve B2C users allows the Company to indirectly tap"

Business-to-consumer (B2C) describes companies that sell products or services directly to individual customers rather than to other businesses. Investors care because B2C firms’ revenues, growth and risks are driven by consumer demand, brand strength and marketing — like a shop whose success depends on foot traffic and repeat shoppers — so shifts in consumer tastes, pricing power or distribution can quickly affect sales and profitability.

market value of listed securities financial

"Company’s MVLS below $50,000,000 for 30+ business days"

The market value of listed securities is the total worth of stocks, bonds and other tradable instruments quoted on an exchange, measured using the prices investors are willing to pay right now. It’s calculated by multiplying each security’s current market price by the number of units outstanding and adding those amounts together, like totaling the value of every item in a store at today’s prices. Investors watch this because it shows the size, liquidity and overall health of the market or a company’s publicly traded portion, and it influences index weights, fund allocations and perceived risk.

market value of publicly held shares financial

"Company’s MVPHS below $15,000,000 for 30+ business days"

The market value of publicly held shares is the total dollar worth of a company’s shares that are available to outside investors, calculated by multiplying the current market price by the number of shares held by the public (the “float”). It matters because it tells investors how much of the company is actually tradable and how the market is pricing that tradable portion—like a price tag on the items on a store shelf, it affects liquidity, volatility and how easy it is to buy or sell a meaningful stake.

registered direct offering financial

"completed a registered direct offering of 8,064,516 ordinary shares"

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

prospectus supplement regulatory

"offering additional Ordinary Shares through this prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

net tangible book value financial

"net tangible book value per share as of June 30, 2024 was $(0.12)"

Net tangible book value is the per-share value of a company if you take all its physical assets and cash, subtract what it owes, and ignore intangible items like patents or brand names. Think of it like the cash you’d split among owners if a business sold its furniture and buildings but not its reputation. Investors use it as a conservative benchmark to judge whether a stock is cheaply priced relative to hard, sellable assets.

AI-generated analysis. Not financial advice.

SHENZHEN, China, Feb. 23, 2026 /PRNewswire/ -- Big Tree Cloud Holdings Limited (the "Company") (NASDAQ: DSY) today announced that its AI business has made initial progress in technology development and services for enterprise clients (B2B), having signed its initial technical service agreements with a total contract value of approximately RMB 4.5 million (approximately US$620,000). This marks a key step in the Company's strategic deployment in the AI commercial application sector.

Leveraging deep insights into industry needs and technological integration capabilities, the Company, through its operating entity, has partnered with multiple enterprise clients and signed technical service agreements. The agreements include providing comprehensive technology development for an AI-centric platform for a strategic partner, as well as for a third-party client in the education sector. These contracts encompass long-term framework collaborations, customized project development, and ongoing maintenance services. Such partnerships reflect market interest in the Company's enterprise-focused platforms that integrate AI-powered functionalities. The Company provides enterprise-level platform development and system integration, including front-end and back-end development, architecture set up, system delivery, and other long-term, end-to-end services that effectively support businesses in achieving digital transformation and strategic implementation.

While these initial contracts are with enterprise clients (B2B), the platforms under development are designed to serve individual end-users (B2C). One of the platforms being developed is an AI learning and application platform intended to cultivate "AI application-oriented talent" for university students and young professionals. This strategy of empowering B2B clients who serve B2C users allows the Company to indirectly tap into the individual user market, laying a foundation for potential synergies between its enterprise services and the broader consumer technology ecosystem.

Management Commentary

Mr. Wenquan Zhu, Chairman of the Board of the Company, stated, "We will continue to invest in both enterprise and individual AI businesses, providing actionable solutions for enterprises through professional teams and building efficient learning systems for individual users to achieve sustainable growth."

Ms. Xiaoxuan Zhu, Director and Co-Chief Executive Officer, added, "We are committed to building an AI platform that connects talent development with corporate needs. By developing platforms that bridge corporate needs with talent development and deepening the synergy between B2B and B2C segments, we aim to create long-term value for all stakeholders."

About Big Tree Cloud

Founded in 2020, Big Tree Cloud is positioned as an international capital platform focused on industrial integration and strategic investment in China's personal care industry. The Company is committed to empowering industries through capital operations. Currently, Big Tree Cloud is accelerating its expansion into the AI sector. This new business line aims to capture the growing market demand for AI skills, injecting fresh momentum into the Company's development.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. These statements involve risks and uncertainties and relate to, among other things, the Company's future business development, growth strategies, and operational plans. These forward-looking statements include, but are not limited to, the Company's ability to successfully develop and commercialize the AI platforms for its clients, the market acceptance of these platforms by end-users, the potential synergies between B2B and B2C businesses, and the Company's ability to achieve sustainable growth. Actual results may differ materially from those expressed or implied in such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the evolving regulatory environment in China, competition in the AI industry, the Company's ability to retain key personnel and technology, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Investor Relations Contact
Ting Yan
Phone: +86 15986815865
Email: yanting@bigtreeclouds.com

View original content:https://www.prnewswire.com/news-releases/big-tree-cloud-secures-first-batch-of-ai-enabled-enterprise-platform-development-contracts-302694490.html

SOURCE Big Tree Cloud Holdings Limited

FAQ

What did Big Tree Cloud (DSY) announce on February 23, 2026 about AI contracts?

They announced initial technical service agreements with a combined value of approximately RMB 4.5 million. According to the company, the deals fund AI platform development, framework collaborations, and maintenance for enterprise clients.

How much are the initial AI development contracts for Big Tree Cloud (DSY)?

The initial contracts total about RMB 4.5 million (≈US$620,000). According to the company, that sum covers multiple technical service agreements across strategic and education-sector clients.

What types of services are included in DSY's signed agreements?

The agreements cover enterprise-level platform development, system integration, and ongoing maintenance. According to the company, services include front-end/back-end development, architecture setup, system delivery, and long-term support.

Who are the target users for the AI platforms Big Tree Cloud (DSY) is building?

Platforms are designed for enterprise clients but serve individual end-users like students and young professionals. According to the company, one platform focuses on AI learning and cultivating application-oriented talent.

Will DSY's AI deals affect its B2B and B2C strategy?

The company aims to deepen B2B–B2C synergy by empowering enterprise clients who reach individual users. According to the company, this strategy lays a foundation for cross-segment expansion and long-term value creation.

Are the signed AI contracts with Big Tree Cloud (DSY) long-term agreements?

Yes; the contracts include long-term framework collaborations alongside customized project development and maintenance. According to the company, these arrangements intend to support sustained enterprise digital transformation.