Datasea Secures Landmark Agreement for First Acoustic Wearable Technology Contract, Marking Entry into the $1 Trillion Market

Rhea-AI Summary

Datasea (NASDAQ: DTSS) has signed a significant 12-month service agreement with Hainan Zhixingjian for acoustic smart health shoes technology. The company will provide proprietary acoustic health hardware and software solutions for smart health insoles, incorporating features like heating, weight monitoring, and ultrasonic sterilization.

Under the agreement, Datasea will receive RMB 9 ($1.26) per pair of shoes produced, reducing to RMB 7 ($0.98) if production exceeds 1 million pairs. The contract includes a minimum guaranteed fee of RMB 500,000 ($70,224) and is expected to generate up to RMB 7 million ($0.98 million) in technology service fees. This marks Datasea's strategic shift from hardware sales to a high-margin, solution-driven growth model in the health wearables market.

Positive

• Expected revenue of up to RMB 7 million ($0.98 million) from technology service fees
• Partnership with established player Hainan Zhixingjian, which has shipped over 3 million pairs of smart shoes
• Recurring revenue model through usage-based licensing
• Strategic expansion into the growing health wearables market
• Minimum guaranteed service fee of RMB 500,000 protects downside

Negative

• Revenue per unit decreases from RMB 9 to RMB 7 for volumes over 1 million pairs
• Success depends on partner's ability to meet production targets
• Minimum guarantee only represents 7% of maximum projected revenue

Driving the Commercialization of Acoustic Technology in Smart Health Wearables through Solution-Based Service Delivery

BEIJING, Sept. 11, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS), a Nevada-based technology company specializing in acoustic high-tech products and AI multimodal digital solutions, today announced that its VIE entity in China, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd., has signed a service agreement with Hainan Zhixingjian Intelligent Technology Co., Ltd.( "Hainan Zhixingjian"). The two companies will collaborate on the commercialization of acoustic smart health shoes.

Agreement Overview

According to the agreement:

• Contract Term: 12 months
• Technology Output: Datasea will provide proprietary acoustic health hardware and software technology solutions for both adult and children's smart health insoles. This solution integrates Datasea's acoustic technology into consumer-grade health wearables, enabling functions such as heating, weight monitoring, ultrasonic sterilization to remove odors, as well as relieving fatigue, improving sleep quality, assisting in the treatment of chronic diseases (such as joint pain), and promoting metabolism, among other key benefits.
• Technology Service Fee: The agreement adopts a usage-based licensing model, with technology service fees calculated based on the cumulative production quantity of products incorporating Datasea's acoustic technology. During the contract period, Hainan Zhixingjian will pay Datasea RMB 9 per pair (USD 1.26) of shoes produced, including a RMB 1 per pair (USD 0.14) fee for the mini-program usage. If production exceeds 1 million pairs, the service fee will decrease to RMB 7 per pair (USD 0.98). Additionally, if the production target is not met by July 31, 2026, Hainan Zhixingjian will still need to pay a minimum guaranteed service fee of RMB 500,000 (approximately USD 70,224).
• Contract Amount: Based on projected production, Datasea expects to generate up to RMB 7 million (approximately USD 0.98 million) in technology service fees during the contract period. With the expansion of third-party cooperation channels, the contract value is expected to increase further.

Hainan Zhixingjian Intelligent Technology Co., Ltd. is an innovative company focused on the smart health wearables and sports wellness sector. Leveraging the policy and research resources of the Hainan Free Trade Zone, the company has launched a product portfolio including smart shoes, intelligent wellness devices, and digital health platforms, having shipped over 3 million pairs of smart shoes. With more than 50 patents and software copyrights, and rapid marketization capabilities, Hainan Zhixingjian is becoming a leading company in the domestic smart health wearable industry.

"This agreement marks the first batch of orders for Datasea's acoustic technology embedded in smart health shoes, and represents an important step in the commercialization of our acoustic technology + AI + application scenarios. We are not only entering the fast-growing health wearable market but also validating our acoustic technology licensing + solution-driven profit model. This is a vivid example of the company's transformation from hardware sales to high-margin solution-driven growth, and a reflection of the company's strategic focus," said Zhixin Liu, CEO of Datasea. "By combining acoustic technology with AI, we are able to provide comprehensive technical empowerment in the health sector and establish a replicable, scalable commercialization path using the usage-based licensing model, ultimately forming a sustainable source of recurring revenue."

At the same time, this cooperation also opens new market opportunities for Datasea further expansion of acoustic technology into the healthcare and consumer sector. As a high-frequency consumer wearable, the smart health shoes have natural user stickiness and significant market scalability, driving Datasea's acoustic technology into the health, medical monitoring, and lifestyle sectors. Building on the company's research in acoustic + neural modulation, the solution is expected to extend to brain, heart, and foot reflexology for precision health interventions. This partnership not only highlights the company's R&D and intellectual property advantages in the field of acoustic health, but also echoes the company's "acoustic + AI + application scenarios" cross-industry empowerment strategy, embedding acoustic technology as the underlying support for products and services across various industries. It further validates the feasibility and forward-looking nature of its cross-industry applications, which will solidify Datasea's technical barriers and market leadership.

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 value of Datasea's (DTSS) new acoustic technology contract?

The contract is expected to generate up to RMB 7 million ($0.98 million) in technology service fees over 12 months, with a minimum guaranteed fee of RMB 500,000 ($70,224).

How much will Datasea (DTSS) earn per pair of smart health shoes?

Datasea will earn RMB 9 ($1.26) per pair of shoes, reducing to RMB 7 ($0.98) if production exceeds 1 million pairs. This includes a RMB 1 fee for mini-program usage.

What features does Datasea's acoustic smart health shoe technology include?

The technology includes heating, weight monitoring, ultrasonic sterilization for odor removal, fatigue relief, sleep quality improvement, chronic disease treatment assistance, and metabolism promotion.

Who is Datasea's partner for the acoustic smart health shoes?

Datasea partnered with Hainan Zhixingjian Intelligent Technology, an innovative company that has shipped over 3 million pairs of smart shoes and holds more than 50 patents and software copyrights.

When does Datasea's smart health shoes contract expire?

The contract has a 12-month term with a production target deadline of July 31, 2026.