The current trading session is witnessing a remarkable uptick of 16.18% in the shares of Datasea Inc. (NASDAQ: DTSS), soaring to $7.93 per share. This surge is attributed to the recent announcement of strategic business development endeavors, which has acted as a significant catalyst for the notable rise in DTSS shares on the US stock charts.
Today, Datasea (DTSS) disclosed that its wholly-owned subsidiary, Heilongjiang Xunrui Technology Co., Ltd., has entered into a 5G AI Multimodal Communication Cooperation Agreement on March 26, 2024. The agreement was signed with Xiamen Star Miracle Information Technology Co., Ltd., a prominent provider of marketing and application services.
The agreement outlines provisions for the purchase of 5G multimodal communication delivery services from Xunrui Technology over a period of 12 months, commencing from March 15, 2024. The estimated total value of the services under this agreement amounts to $30 million.
This collaborative endeavor is anticipated to stimulate an influx of new customer orders, thereby solidifying Datasea's position as a frontrunner in the AI-5G multimodal communication services sector. Aligned with DTSS' overarching mission to emerge as a premier provider of digital technology solutions, this agreement underscores the company's commitment to expanding its market presence within China's 5G multimodal communication services sector.
Datasea stands poised to capitalize on similar opportunities as it continues to forge new agreements with key stakeholders in this domain, thereby augmenting its revenue streams. Star Miracle, renowned for its provision of high-quality marketing and application services, caters to a diverse clientele comprising numerous Chinese enterprises, e-commerce platforms, and individuals, offering prepaid fuel service plans, mobile phone packages, and prepaid recharge plans.
The agreement between Datasea's subsidiary and Star Miracle underscores the esteemed value attributed to Datasea's 5G multimodal communication platform, renowned for its AI-enhanced features and comprehensive suite of services. Datasea remains bullish on the sustained demand for 5G multimodal communication services within China.
Notably, the company has reported a staggering year-over-year revenue increase of 1,037.5%, amounting to $18.2 million from 5G multimodal communication-related services during the first half of its fiscal year 2024. This exponential growth is indicative of Datasea's adeptness in delivering efficient and premium-grade services to its clientele.
The recently forged agreement bolsters Datasea's earlier projection of achieving approximately $86 million in revenue for the full fiscal year ending June 30, 2024, reflecting a remarkable year-over-year increase of approximately 1,128%.