Datasea Advances Deployment of an Acoustics + AI-Driven Next-Generation Beauty & Health Intelligence System, Addressing a Multi-Billion-Dollar China Market Opportunity

Rhea-AI Summary

Datasea (NASDAQ: DTSS) announced a strategic partnership with Shenzhen Yizhimei on Dec 17, 2025 to deploy an Acoustics + AI-driven Beauty & Health Intelligence System and an Acoustics Digital AI Shampooing Robot across a nationwide store network.

Key commercial terms include system settlement fees ≥0.1% of online transaction flows, 3% technology service fees on gross sales from an initial cohort of 3,000 designated stores, 0.5% e-commerce platform fees, and a minimum annual revenue guarantee of RMB 1.2 million. Datasea positions the deployment to address China's Beauty & Health market estimated at RMB 1.5 trillion (~USD 210B).

Positive

• Minimum annual revenue guarantee of RMB 1.2 million
• 3% technology service fee on gross sales from initial 3,000 stores
• System retains no less than 0.1% of online transaction flows
• 0.5% fee on Yizhimei online mall revenue
• Addresses a market sized at RMB 1.5 trillion

Negative

• Commercial revenue tied to an initial cohort of 3,000 designated stores
• Fee schedule uses low single-digit and sub‑percent rates (0.1%–3%) per transaction

Key Figures

System settlement fee ≥0.1% of online transaction flows Fee on all transactions processed through Datasea’s system

Designated stores More than 3,000 stores Initial cooperative store network for system rollout

Technology service fee 3% of gross sales Share of total online and offline gross sales from 3,000 stores

E-commerce platform fee 0.5% of revenue Share of revenue from Yizhimei’s online mall

Minimum annual guarantee RMB 1.2 million Minimum annual revenue guarantee from Yizhimei

China Beauty & Health market RMB 1.5 trillion (~USD 210 billion) Estimated total market size per 2024 research

Market Reality Check

$0.9900 Last Close

Volume Volume 60,904 is below 20-day average 72,602 (relative volume 0.84), suggesting muted pre-news activity. normal

Technical Shares at $1.022 trade near the 52-week low (2.3% above) and about 67.03% below the $3.10 52-week high, remaining below the 200-day MA of $1.97.

Peers on Argus

DTSS fell 7.93% while peers were mixed: BNAI (-18.4%), FAAS (-8.3%), BLIN (-1.3%) declined, but OLB (+0.41%) and MSAI (+2.33%) rose, pointing to stock-specific factors over a broad sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	BCI tech update	Positive	+14.6%	Announced completion of two acoustic-driven brain–computer interface systems.
Nov 18	Market activity statement	Positive	+14.5%	Addressed trading activity and highlighted 4.9x YoY gross profit growth.
Nov 13	Quarterly earnings	Positive	-4.0%	Reported revenue decline but 5.9x gross profit and margin expansion on tech shift.
Sep 26	Annual results	Positive	-10.2%	Record FY2025 revenue and gross profit growth driven by AI digitalization.
Sep 11	Wearables contract	Positive	-5.3%	Signed 12‑month acoustic smart health shoes deal with minimum fee and upside.

Pattern Detected

Recent history shows multiple positive technology and contract announcements often met with negative or muted price reactions, with only the most recent tech updates aligning with upside moves.

Recent Company History

Over the last six months, Datasea reported strong growth in AI multimodal and acoustic businesses, including record FY2025 revenue of $71.62M and a pivot toward higher‑margin technology solutions. It signed a notable acoustic wearable contract with minimum guaranteed fees and later highlighted sharply higher gross profit and margin in Q1 FY2026. Recent updates emphasized acoustic brain–computer interface advances and reaffirmed business stability despite trading volatility. Today’s AI-driven beauty & health partnership extends that strategy of monetizing acoustic and AI capabilities through recurring, performance-linked contracts.

Market Pulse Summary

This announcement details a multi-faceted partnership that embeds Datasea’s Acoustics + AI system into more than 3,000 beauty and health stores, adding settlement, technology, and e-commerce fees plus a minimum RMB 1.2 million annual guarantee. It targets China’s Beauty & Health market estimated at RMB 1.5 trillion. In context of prior AI and acoustic contracts, investors may watch how transaction volumes, store adoption, and subsequent disclosures translate into reported revenue and margin trends.

Key Terms

multimodal data intelligence technical

"covering user operations, health detection, multimodal data intelligence, and AI-enhanced"

Multimodal data intelligence combines different kinds of information—such as text, numbers, images, audio, and sensor readings—into a single, searchable set of insights using software that finds patterns across those sources. For investors it matters because it converts scattered signals (earnings reports, news stories, satellite images, voice transcripts) into clearer, faster signals about risks and opportunities, much like compiling multiple medical tests to reach a more reliable diagnosis.

acoustic algorithms technical

"Datasea will embed its acoustic algorithms, sensing technologies, and AI recognition"

Acoustic algorithms are step-by-step computer methods that take raw sound and turn it into useful information — for example converting microphone input into text, measuring echoes to sense distance, or detecting biological sounds in medical devices. They matter to investors because they power or improve products and services (voice assistants, noise monitoring, ultrasound diagnostics), affecting accuracy, cost, regulatory approval and market appeal; think of them as the recipe that makes sound-based features work reliably.

sensing technologies technical

"embed its acoustic algorithms, sensing technologies, and AI recognition models"

Sensing technologies are devices and systems that detect physical, chemical or biological signals—like a camera sees light, a thermometer reads temperature, or a sensor smells gas—and turn them into digital data. Investors care because these technologies enable products to monitor conditions, automate processes, improve safety, and create new data-driven services; strong sensing capabilities can drive revenue, reduce costs, and affect regulatory approval and market competitiveness.

AI recognition models technical

"acoustic algorithms, sensing technologies, and AI recognition models into Yizhimei's"

AI recognition models are computer systems trained to spot and classify patterns in data—such as images, voices, documents or sensor signals—and automatically label or sort that information. For investors they matter because these models can enable new products, lower operating costs, speed decision-making and create competitive advantage, but they also bring risks around accuracy, data quality and regulation; think of them as automated specialists that must be proven reliable to deliver value.

acoustic sterilization medical

"Environmental cleansing and air purification through acoustic sterilization"

Acoustic sterilization uses focused sound waves—often at ultrasonic frequencies—to kill or remove bacteria, viruses and other microbes from surfaces, fluids or equipment by physically disrupting them rather than using heat or chemicals. Investors should care because it promises a potentially faster, less corrosive and more environmentally friendly way to sterilize products and processes, which can lower operating costs, speed production and open new markets if proven safe and approved by regulators.

non-invasive wellness technology medical

"smart health management, and non-invasive wellness technology segments are among"

Non-invasive wellness technology covers devices and software that monitor, track, or support health and wellbeing without cutting, piercing, or entering the body — think wearable sensors, home monitors, or camera-based apps. Investors care because these products are easier and cheaper to adopt than medical procedures, can win wide consumer use like a fitness tracker, and often create steady revenue from device sales, subscriptions, or health data while facing fewer clinical hurdles.

intelligent hardware technical

"health management, intelligent hardware, and digital platforms in China's rapidly"

Physical devices that combine sensors, processors and software to collect data, make decisions or perform tasks with minimal human guidance — for example, a security camera that recognizes faces or a thermostat that learns your schedule. Investors care because these products can create recurring revenue from software updates, data services and connected ecosystems, and they often signal opportunities for scale, higher margins and new business models, much like a smart appliance turning into a subscription service.

digital service platforms technical

"intelligent hardware integration, and digital service platforms, the collaboration"

Digital service platforms are online systems that connect users, providers and data to deliver services like shopping, banking, healthcare, or software through websites and apps. They matter to investors because they can scale quickly, create recurring revenue and network effects (the more users, the more valuable the platform), while also concentrating customer data and regulatory risk—similar to a shopping mall that gets more valuable as more stores and shoppers join but must follow strict rules.

AI-generated analysis. Not financial advice.

BEIJING, Dec. 17, 2025 /PRNewswire/ -- Datasea (Beijing) Technology Co., Ltd. ("Datasea"), a subsidiary of Datasea Inc. (NASDAQ: DTSS), today announced a strategic partnership with Shenzhen Yizhimei Technology Co., Ltd. ("Yizhimei"). Datasea will empower Yizhimei with its Acoustics + AI technologies to develop a next-generation Acoustics Digital AI Shampooing Robot and Beauty & Health Intelligence System, supporting the accelerated digital transformation of China's beauty and health industry.

Leveraging Datasea's capabilities in acoustic high-tech innovation, AI algorithms, intelligent hardware integration, and digital service platforms, the collaboration will deploy a full-stack system covering user operations, health detection, multimodal data intelligence, and AI-enhanced robotics, enabling agent-based intelligent service capabilities across operational and service scenarios. The initiative is designed to elevate the industry from traditional, experience-driven operating models to data-driven and intelligent service paradigms.

Comprehensive System & Service Capabilities: Building Industry-Level Digital Infrastructure

Under this collaboration, Datasea will integrate the complete Acoustics Digital AI • Beauty & Health System into Yizhimei's operational framework, enabling its existing and future nationwide store network to operate with unified, scalable, and replicable digital capabilities.

1. Intelligent User & Operations Management

Powered by Datasea's proprietary AI engine—including user profiling, behavioral analytics, service matching, and repurchase prediction—stores can transition from manual, offline operations to data-driven intelligent management. This transformation improves service efficiency and customer retention, while simultaneously reducing expansion and management costs and establishing a scalable, replicable, and sustainably profitable store model.

2. Acoustics + AI Hardware Empowerment

Datasea will embed its acoustic algorithms, sensing technologies, and AI recognition models into Yizhimei's intelligent robotics products, enabling:

• High-precision health and condition assessments
• Sleep analysis and improvement
• Sound-wave–based intervention functions
• Environmental cleansing and air purification through acoustic sterilization

With these capabilities, the hardware evolves from a single-function device into an intelligent health-service terminal, significantly enhancing product competitiveness and differentiation, while establishing a reinforced technological barrier that supports long-term competitive advantages.

Through its full-stack capabilities spanning users → stores → headquarters → hardware → cloud, Datasea's intelligent system enables partners to accelerate the transition from basic service productization to comprehensive service intelligence, providing a holistic digital foundation that supports both current operations and long-term network expansion.

Collaboration Revenue Model: Scalable, Predictable, and Linked to Real Transactions

Datasea will generate multiple long-term revenue streams directly tied to the actual operating performance of the cooperative store network, including:

System Settlement Service Fees

Datasea will retain no less than 0.1% of all online transaction flows processed through the system, including transactions generated by more than 3,000 designated stores.

Technology Service Fees

From the first cohort of 3,000 designated stores, Datasea will receive 3% of total online and offline gross sales, reflecting the long-term value contribution of Datasea's system and technologies.

E-Commerce Platform Service Fees

Datasea will receive 0.5% of all revenue generated from Yizhimei's online mall.

To ensure stable project execution, the parties have agreed that Datasea will receive a minimum annual revenue guarantee of RMB 1.2 million. If actual revenues fall below this threshold, Yizhimei will make up the difference. This mechanism provides predictable investment returns and reflects both parties' confidence in the long-term value of the collaboration.

Expanding Market Opportunity: China's Beauty & Health Industry Entering a Multi-Billion-Dollar Growth Phase

According to industry research reports published by Grand View Research (2024), and Fortune Business Insights (2024):

• China's beauty and wellness ("Beauty & Health") market is estimated to exceed RMB 1.5 trillion (approximately USD 210 billion) in total size, with sustained high single-digit to double-digit annual growth driven by consumption upgrading and technological innovation;
• The digital beauty, smart health management, and non-invasive wellness technology segments are among the fastest-growing sub-sectors, benefiting from increasing demand for personalized services, data-driven operations, and intelligent devices;
• AI-enabled systems, intelligent hardware, and integrated digital platforms are expected to become core infrastructure supporting the next phase of industry standardization, scalability, and chain expansion.

Datasea's Acoustics + AI technology roadmap aligns closely with these structural growth trends, positioning the Company to capture emerging opportunities at the intersection of beauty services, health management, intelligent hardware, and digital platforms in China's rapidly expanding Beauty & Health ecosystem.

CEO Statement

The CEO, Ms. Zhixin liu, commented:

"The beauty and wellness industry is entering a phase of deep digital and intelligent transformation. This collaboration is far more than a system deployment or product upgrade—it represents the introduction of Datasea's core strengths in acoustic technology, AI algorithms, platform architecture, and intelligent hardware into a high-potential industry scenario.

By combining the Acoustics Digital AI • Beauty & Health System with AI-powered acoustic devices, we aim to help every partner store achieve replicable, manageable, and sustainable growth. We believe this collaboration will not only reshape operating models and user experiences, but also create long-term structural value for the entire industry."

About Datasea Inc.

Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G-AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Investor and Media Contact: 

Datasea Investor Relations
Email:  investorrelations@shuhaixinxi.com
            sunhezhi@shuhaixinxi.com 

Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com

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SOURCE Datasea Inc.

FAQ

What did Datasea (DTSS) announce on December 17, 2025?

Datasea announced a strategic partnership with Shenzhen Yizhimei to deploy an Acoustics + AI Beauty & Health Intelligence System and a shampooing robot.

How will Datasea generate revenue from the Yizhimei collaboration (DTSS)?

Datasea will earn ≥0.1% of online transaction flows, 3% technology fees from the first 3,000 stores, 0.5% e-commerce fees, plus a RMB 1.2M annual minimum guarantee.

What market opportunity does the DTSS partnership target in China?

The initiative targets China’s beauty and wellness market estimated at RMB 1.5 trillion (~USD 210B) with growth in digital beauty and smart health segments.

What capabilities will Datasea provide to Yizhimei under the DTSS deal?

Datasea will supply acoustic algorithms, sensing, AI recognition models, robotics integration, user profiling, behavioral analytics, and cloud platform services.

What is the scale requirement referenced in the Datasea–Yizhimei agreement?

The agreement references an initial cohort of 3,000 designated stores as the basis for technology fee calculations.

Does Datasea have downside protection in the collaboration?

Yes; Yizhimei agreed to make up any shortfall if Datasea's actual revenues fall below the RMB 1.2 million annual guarantee.