Big Tree Cloud Holdings Limited (NASDAQ: DSY) announced that it has signed its first technical service agreements for AI‑enabled enterprise platform development, system integration, and ongoing maintenance. The contracts, totaling roughly RMB 4.5 million (about US$652,500 using the February 23 2026 exchange rate of 1 CNY = 0.1450 USD), were awarded to a strategic partner and a third‑party client in the education sector.
The deal comes as the company continues a broader pivot away from its legacy personal‑care product line. In the fiscal year ended June 30 2025, Big Tree Cloud reported a net loss of US$32.5 million and a 65.1% decline in revenue year‑over‑year, prompting Nasdaq deficiency notices over its minimum bid‑price requirement. The new AI contracts provide a modest but tangible revenue stream amid these financial challenges and a corporate restructuring that included a share consolidation in February 2026 to address Nasdaq compliance.
The agreements cover comprehensive technology development, system integration, and ongoing maintenance for the education‑sector clients. The strategic partner will receive a long‑term framework collaboration, while the third‑party client will receive customized project development. The contracts are designed to position Big Tree Cloud as a provider of enterprise‑grade AI platforms that can also serve individual end‑users, creating a B2B‑to‑B2C synergy.
Management emphasized the strategic intent behind the contracts. Chairman Wenquan Zhu said, "We will continue to invest in both enterprise and individual AI businesses, providing actionable solutions for enterprises through professional teams and building efficient learning systems for individual users to achieve sustainable growth." Chief Executive Officer Xiaoxuan Zhu added, "We are committed to building an AI platform that connects talent development with corporate needs. By developing platforms that bridge corporate needs with talent development and deepening the synergy between B2B and B2C segments, we aim to create long‑term value for all stakeholders."
The contracts mark a first tangible step into the AI sector and validate market interest in Big Tree Cloud’s enterprise‑focused AI platforms. However, the company’s broader financial picture remains challenging, with significant losses and Nasdaq compliance pressures. The new deals provide a modest revenue boost and a strategic foothold in AI, but they are part of a larger effort to diversify and stabilize the company’s business model while addressing regulatory and financial hurdles.
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