Datasea Secures $100 Million in 5G+AI Contracts from Major Clients, Reinforcing Strategic Expansion and Long-Term Growth

Rhea-AI Summary

Datasea (NASDAQ: DTSS) has secured two major contracts worth a combined $100 million for 5G-AI multimodal digital services. The 12-month agreements include a renewed partnership with Qingdao Ruizhi Yixing and a new deal with Qingdao Dong'an, each valued at $50 million. The contracts cover enhanced services including AI-enabled interaction platforms, precision marketing systems, and real-time data Top-up operations. Notably, Qingdao Ruizhi Yixing contributed $38.3 million in revenue during the first nine months of FY2025. These deals support Datasea's FY2025 revenue target of $90 million and position the company for strong growth in FY2026. The company's platform utilizes proprietary Transformer architecture and distributed AI training methods for applications across e-commerce, digital marketing, fintech, logistics, and health management sectors.

Positive

• Secured two major contracts totaling $100 million over 12 months
• Strong customer retention demonstrated by Qingdao Ruizhi Yixing's renewal, which contributed $38.3M in revenue in FY2025
• Expansion of client base with new key customer Qingdao Dong'an
• Agreements support company's FY2025 revenue target of $90 million

Negative

• None.

Insights

Financial Analyst

Datasea secured $100M in contracts that exceed their FY2025 revenue target, signaling strong growth momentum and customer retention.

Datasea has announced two significant contract wins totaling $100 million for 5G-AI multimodal digital services, with each agreement valued at $50 million over a 12-month period. The first contract represents a renewal with existing customer Qingdao Ruizhi Yixing, which has already contributed $38.3 million in revenue during the first nine months of fiscal year 2025. The second agreement is with new client Qingdao Dong'an, expanding Datasea's customer base.

These contracts have substantial financial implications. The company's stated revenue target for fiscal 2025 is $90 million, and these new agreements not only support achieving this goal but provide significant momentum into fiscal 2026. The 31% increase in revenue from just one customer (from $38.3 million to $50 million) demonstrates strong upselling capabilities and growing service adoption.

The contract renewal with Qingdao Ruizhi Yixing indicates high customer retention and satisfaction with Datasea's 5G-AI solutions. This customer stickiness is particularly valuable in technology services, where switching costs can be high once a customer is integrated into a provider's ecosystem. The addition of a new major client simultaneously signals market expansion and growing industry recognition.

Datasea's strategic positioning in the intersection of 5G and AI technologies places it in high-growth market segments. Their proprietary Transformer architecture and distributed AI training methods for multimodal data integration (text, video, audio, image) represent technical differentiators that appear to be translating into commercial success across multiple sectors including e-commerce, digital marketing, fintech, logistics, and health management.

The renewal from a key client demonstrates strong loyalty, while a new major deal reflects continued growth momentum heading into FY2026.

BEIJING, May 19, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company"), a Nevada-based technology company specializing in acoustic high-tech products and 5G+AI multimodal digital solutions, today announced that its subsidiaries have signed two new service contracts totaling up to $100 million for the provision of 5G-AI multimodal digital services over a 12-month period. The customers include long-term partner Qingdao Ruizhi Yixing Information Technology Co., Ltd. ("Qingdao Ruizhi Yixing") and a new key client, Qingdao Dong'an Information Technology Co., Ltd. ("Qingdao Dong'an")

Under the terms of the agreements, Datasea will deliver customized 5G-AI digital services, including data Top-up solutions and AI-powered communication tools, to both Qingdao Ruizhi Yixing and Qingdao Dong'an. Each contract is valued up to $50 million, representing a strong vote of recognition and confidence in the performance and value of Datasea's 5G-AI solutions.

Zhixin Liu, CEO of Datasea, commented:
"Securing these two renewed agreements, particularly with long-time customer Qingdao Ruizhi Yixing, is not only a testament to our product strength and service quality, but also a validation of our customer retention strategy and long-term value delivery. These contracts reflect the high degree of customer stickiness that we've cultivated—Qingdao Ruizhi Yixing alone contributed over $38.3 million in revenue during the nigh months of fiscal year 2025. These new agreements not only help us confidently pursue our fiscal 2025 revenue target of $90 million but will also provide strong momentum for continued high-growth into fiscal 2026. We remain committed to scaling our intelligent 5G-AI services and reinforcing Datasea's position as an industry leader in China's digital transformation landscape."

The contracts cover a 12-month service period and will support the delivery of enhanced 5G multimodal digital services, including advanced AI-enabled interaction platforms, precision marketing systems, and real-time data Top-up operations. This strategic expansion is expected to further solidify Datasea's leadership in China's rapidly evolving 5G-AI value-added services market.

Datasea's 5G-AI multimodal platform leverages its proprietary Transformer architecture and distributed AI training methods to integrate data from multiple modalities—text, video, audio, and image—for comprehensive and intelligent enterprise solutions. These capabilities power a wide array of applications across sectors including e-commerce, digital marketing, fintech, logistics, and health management.

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 is the total value of Datasea's (DTSS) new 5G-AI contracts announced in May 2025?

Datasea secured two contracts totaling $100 million, with each contract valued at $50 million for a 12-month service period.

Who are the major clients in Datasea's (DTSS) new $100M contracts?

The contracts are with long-term partner Qingdao Ruizhi Yixing Information Technology and new client Qingdao Dong'an Information Technology.

What services will Datasea (DTSS) provide under the new contracts?

Datasea will provide customized 5G-AI digital services, including data Top-up solutions, AI-powered communication tools, precision marketing systems, and AI-enabled interaction platforms.

What is Datasea's (DTSS) revenue target for fiscal year 2025?

Datasea's revenue target for fiscal year 2025 is $90 million.

How much revenue did Qingdao Ruizhi Yixing contribute to Datasea (DTSS) in fiscal year 2025?

Qingdao Ruizhi Yixing contributed over $38.3 million in revenue during the first nine months of fiscal year 2025.