BEIJING - Datasea Inc. (NASDAQ:DTSS), a Nevada-incorporated digital technology company, announced today its partnership with iPower Inc. (NASDAQ:IPW) through a Framework Agreement for Product Cooperation. This collaboration is aimed at enhancing product distribution in the US online market.
The agreement signifies the commencement of a joint venture that will see the integration of Datasea's expertise in acoustic high-tech and 5G-AI multimodal communication technology with iPower's established online merchandising and logistical capabilities.
The CEO of Datasea, Zhixin Liu, expressed enthusiasm about the partnership, stating it would allow the company to extend its reach and deliver advanced products to American consumers.
iPower Inc., known for its data and tech-driven online retail presence, plans to utilize its e-commerce strengths to promote Datasea's products. Lawrence Tan, CEO of iPower, emphasized the strategic alignment with their mission to offer quality products and services. He expressed confidence in creating a seamless shopping experience for customers and fostering growth for both companies.
As part of the collaboration, Datasea will introduce a variety of acoustic intelligence products to the US market and provide the necessary technical support for their expansion. In return, iPower will contribute its e-commerce expertise to enhance the promotion of Datasea's offerings.
Datasea Inc. is a leading provider in the fields of Acoustics and 5G-AI multimodal communication, focusing on technologies like ultrasonic sterilization and directional sound. In July 2023, Datasea established a subsidiary, Datasea Acoustics LLC, in Delaware, emphasizing its dedication to bringing high-tech acoustic solutions to the US.
The information is based on a press release statement.
InvestingPro Insights
Datasea Inc. has been actively pursuing growth strategies, as evidenced by their recent partnership with iPower Inc. This collaboration could potentially enhance Datasea's product distribution in the US online market. InvestingPro data shows some critical financial metrics that might be of interest to investors considering this partnership's implications:
- The company's Market Cap stands at a modest 19.01 million USD, reflecting its small-cap status in the market.
- Datasea's Revenue Growth has been impressive, with an increase of 232.5% in the last twelve months as of Q2 2024, indicating a significant expansion in sales.
- Despite the growth in revenue, the company's Gross Profit Margin is relatively low at 1.92% for the same period, suggesting that the cost of sales is high relative to revenue.
Investors following Datasea's stock should note the company's performance challenges. According to InvestingPro Tips, Datasea is quickly burning through cash and has suffered from weak gross profit margins. Additionally, the stock has experienced high price volatility and has taken a significant hit over the last week. These factors could be crucial for investors looking for stability and consistent growth.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that provide further insight into Datasea's financial health and stock performance. Currently, there are 15 more tips listed on InvestingPro for Datasea. Subscribers can access these tips to get a more comprehensive understanding of the company's financial position and market performance.
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