NEW YORK, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) (“Datasea” or the “Company”), a technology company engaged in providing smart security solutions and developing education-related technologies in China, has entered into service agreements involving its Smart Information Service System (the “Smart System”) with the following companies: Guangdong Dingxin Hongtu Technology, a research & development firm for water treatment equipment, Shenzhen Odomco Wine, a wholesaler and retailer of wine, Fujian Casenow Technology, a marketing service company, Ice World Carnival Sports Culture Development, China's leading modern and modular real ice construction and project operator, and Dongguan Juyang Industrial Investment, a life service-based comprehensive enterprise.
As a part of Datasea’s recent initiative to leverage its big data smart information software platform and facial recognition technology, the Company developed the Smart System to service the needs of retail industry vendors. The Smart System employs code scanning and facial recognition technology in online and “brick and mortar” shops to complete point of sale (“POS”) transactions without physically interacting with customers.
Under the terms of these agreements, Datasea will install hardware equipment and software for the five new customers, perform regular maintenance, and host software operations training sessions, in exchange for 0.38% of the transaction value of each transaction utilizing the Company’s technology. Additionally, the average annual transaction values for the five customers are estimated by such retail vendors as follows: RMB 50 million (approximately USD$7.6 million) for Guangdong Dingxin Hongtu Technology, RMB 30 million (approximately USD$4.6 million) for Shenzhen Odomco Wine, RMB 95 million (approximately USD$14.5 million) for Fujian Casenow Technology, RMB 32 million (approximately USD$4.9 million) for Ice World Carnival (Beijing) Sports Culture Development, and RMB 50 million (approximately USD$7.6 million) for Dongguan Juyang Industrial Investment. As a result, based on and assuming the foregoing estimates, the Company estimates its earning potential to be approximately RMB 0.976 million (approximately USD$148,742) on an annual basis. The term of each of the service agreements is five years.
“We continue to be encouraged by the interest for our Service System from consumers looking for a safe and innovative way to execute POS transactions,” said Chairman and CEO, Ms. Liu Zhixin. “As the retail ecosystem constantly evolves and transforms over time, we intend to capitalize on the market opportunity at hand with our flexible technology platform and world-class R&D team. Datasea remains dedicated to developing state-of-the-art products and solutions that increase the efficiency for our customers and the safety of their end users.”
About Datasea Inc.
Datasea is a technology company in China engaged in providing smart security solutions and developing education-related technologies. Datasea leverages its proprietary technologies, intellectual property, innovative products and market intelligence to provide comprehensive and optimized security solutions and education-related technologies to its clients. For additional company 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" and similar statements. 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 many of which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including, without limitation, the performance and expected results of operations arising from Datasea’s contracts and products addressed in this press release), Datasea’s ability to maintain and generate any revenue from the agreements subject of this press release, 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 U.S. Securities and Exchange Commission, 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 the law.
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