Benzinga | Sep 23, 2021 08:35AM EDT

Datasea Signs $3.87M Procurement Contract For Short Message And 5G Multimedia Message Services

Datasea Inc. (NASDAQ:DTSS) ("Datasea"), a technology company that provides visual and non-visual based smart security solutions, 5G messaging products, and smart payment services in China, announced today that its wholly-owned subsidiary, Shuhai Zhangxun Information Technology Co., Ltd. ("Shuhai Zhangxun") had signed a $3.87 million procurement contract (the "Contract") for Short Message and 5G Multimedia Message Services ("Messaging Services") with Liangzi Xuntong Technology Co., Ltd. ("Liangzi Xuntong").

Pursuant to the Contract, Shuhai Zhangxun will provide Messaging Services to help Liangzi Xuntong reach its clients. The Messaging Services include but are not limited to granting Liangzi Xuntong 1) access to Shuhai Zhangxun Short Message and 5G Multimedia Message platforms; 2) an access code issued by the Ministry of Industry and Information Technology to adopt the services, and 3) the telecommunications gateways of the three major Chinese mobile operators to allow data to flow from one discrete network to another. Liangzi Xuntong undertakes that the total purchase value of this engagement would be no less than RMB 25 million (approximately USD 3.87 million). The term of the Contract is one year, during which the service fees will be prepaid by Liangzi Xuntong on a monthly basis based on its estimated amount of messages to be sent and Shuhai Zhangxun will provide to Liangzi Xuntong an invoice listing the details of services and fees within the first five days of the next month.

"This procurement contract reflects our ongoing commitment to introduce our products to the market. Our performance has been strong year-to-date, and we have a very competitive product portfolio in 5G Messaging markets. To continue this momentum, we are working with distribution partners together to expand product availabilities while keeping delivering first-class services," said Zhixin Liu, CEO of Datasea.