Datasea Reports Second Fiscal Quarter 2025 Revenue of $20.5 Million, Up 81.4% Year-over-Year

Datasea's Top Line Growth Fueled by the Expansion of its State-of-the-Art 5G+AI Multimodal Digital Segment in China , /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea", the "Company", "we", "us", or "our"), a Nevada−based technology company specializing in 5G+AI multimodal digital solutions and acoustic high−tech innovations, today announced its financial results for its second fiscal quarter ended December 31, 2024. The Company reported revenue of approximately $20.5 million, an increase of approximately 81.4% compared to revenue of approximately $11.3 million for the same period in the prior year. The increase was driven by the accelerated adoption of its 5G+AI multimodal digital business services in China due to the Company's continued commercialization of acoustic high-tech products. Ms. Zhixin Liu, CEO of Datasea, commented, "Our strong performance in the second fiscal quarter reflects the successful expansion of our 5G+AI multimodal digital business customer base, where we continue to be an industry leader. We believe the expanding footprint of our 5G+AI customer base and the initial market penetration of our high-margin acoustic products underscore our ability to innovate and capture emerging opportunities. We remain committed to advancing our technological innovation while driving sustainable growth." Financial Highlights Revenue: Revenue for the Company's second fiscal quarter of 2025 was approximately $20.5 million, an increase of approximately 81.4% compared to revenue of approximately $11.3 million for the second fiscal quarter of 2024. This increase was primarily driven by the growth of the Company's 5G+AI multimodal digital business in China, especially the continuous enhancement of the effectiveness and efficiency of 5G multimodal digital products and services through AI technology. Gross Profit: Gross profit for the Company's second fiscal quarter of 2025 was approximately $0.4 million, and our gross margin for the second fiscal quarter was approximately 2.0%. This marks an improvement from the same period in the prior year when the Company recorded gross profit of approximately $0.1 million and a gross margin of approximately 0.9%. Intangible Assets: As of December 31, 2024, and June 30, 2024, the Company's net value of intangible assets was $4,081,544 and $546,001, respectively, reflecting an increase of $3,535,543, or 647%. The increase in intangible assets is crucial to the Company's growth and success. The enhancement of intangible assets, including patents, has simultaneously increased the overall value of the business, promoted sustainable development, and contributed to the Company's long-term success. Inventory: As of December 31, 2024, the Company's inventory was $319,932, an increase of $166,349 from $153,583 on June 30, 2024, marking an increase of 108.31%. The increase in inventory primarily reflects the continued rise in customer orders within the acoustic high-tech business. Maintaining an appropriate inventory level helps the Company address sudden surges in demand or price hikes, secure discounts through bulk purchases, reduce procurement costs, and ensure timely capture of sales opportunities during promotions or peak seasons. The inventory growth reflects the healthy expansion of the Company's business and strategic preparations for future growth. Business Highlights – 5G+AI Multimodal Digital Business 1. Technological Leadership The Company's AI multimodal models have made breakthroughs in areas such as sentiment analysis, machine translation, and natural language processing, expanding the boundaries of intelligent system applications. Currently, the Company is integrating DeepSeek's distributed training methods and mixed-precision training techniques, utilizing half-precision (FP16) and single-precision (FP32) floating-point numbers. After fusing multiple sensory inputs, the models are able to enhance data understanding, analysis accuracy, and decision-making reliability. In line with the Company's business needs, a self-designed Transformer model architecture has been developed, which is capable of processing inputs from multiple modalities in parallel. Datasea's 5G+AI platform incorporates this architecture, utilizing the self-attention mechanism to deeply learn the complex interactions between modalities. This approach excels in applications such as image-text correlation analysis and audio-video synchronization. After integrating DeepSeek's training methods, the platform will further advance in areas such as natural language generation, multilingual processing, code optimization, and logical reasoning, providing more comprehensive and accurate responses. 2. Key Contracts The Company's subsidiaries have signed new contracts worth up to an aggregate of approximately $30 million with Qingdao Ruizhi Yixing, Wuhan Xiaoming Technology, and other clients since last quarter, further reinforcing market penetration. 3. Strategic Collaboration We were selected as a prospective strategic partner by China Mobile Internet (a subsidiary of China Mobile), which has the potential to expand our opportunities for large-scale 5G infrastructure project collaborations. Our 5G+AI platform is capable of serving 52 million enterprises and 124 million individual businesses in China, facilitating digital transformation across sectors including finance, logistics, and agriculture. Business Highlights – Acoustic High-Tech Business 1. Technological Innovation We are focused on the research and application of multiple advanced acoustic technologies, including ultrasound, infrasound, and Schumann resonance. By integrating the latest findings in acoustics, mechanical transduction, and vibration dynamics, the Company is developing AI-driven acoustic high-tech products with unique competitive advantages. We have developed distinct technical expertise in the study and application of non-audible mechanical wave effects, leveraging the cavitation, thermal, and mechanical effects of ultrasound to support a variety of applications such as environmental disinfection, crop pest control, photosynthetic absorption, seed treatment, water purification, safety monitoring, skincare, and healthcare. 2. Product Development Our ultrasonic disinfection machine series and the "Star Dream" non-contact sleep aid device utilize Schumann resonance and AI-powered acoustic algorithms to enhance health living and company's product performance. Our planned calendar year 2025 acoustic product releases include applications in environmental acoustic technology and neurological acoustic technology, such as the development of a pet deodorizing purifier and mechanical wave-based brain cortical cortisol regulation device, both of which target growing consumer markets. 3. Product Placement and Expansion Plans In January 2025, the Company reported that it has partnered with a significant number of beauty and health management companies in Tianjin and Hubei Provinces, introducing acoustic high-tech products to 463 beauty and personal care stores. By the end of calendar year 2025, the Company expects to sell up to 260,000 units of acoustic air disinfection devices and sleep products, with total projected revenue of approximately $19 million (approximately ¥1.33 billion RMB), achieving significant market penetration in Northern China. We plan to expand into the U.S. market, including partnerships with U.S. e-commerce platforms and distributors. We are strengthening our intellectual property (IP) portfolio, enhancing patents covering ultrasound medical imaging, precision acoustic industrial manufacturing, acoustic applications in agriculture, and acoustic IoT (Internet of Things) technologies. Operational and Strategic Outlook Margin Improvement: We intend to drive profitability by scaling high-margin acoustic products (e.g., ultrasonic sterilizers, sleep aids) and offering technical services through the Company's 5G+AI platform, thereby reducing customer acquisition costs for Company's industrial clients. Global Expansion: We plan to accelerate international market entry into the U.S. and Europe and expand our acoustic high-tech business through strategic partnerships and mergers & acquisitions. Gross Margin Improvement: We expect to focus on scaling high-margin acoustic products (e.g., ultrasonic sterilizers, sleep aids) and reducing 5G+AI customer acquisition costs. Global Expansion: We aim to accelerate U.S. and European market entry through partnerships and M&A opportunities in acoustic IoT and precision agriculture. About Datasea Inc. Datasea Inc. ("Datasea") is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G+AI multimodal digitalization. The Company's advanced R&D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional 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," "objective" and similar terms. 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 which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) 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 SEC, 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 law. Investor and Media Contact: Datasea Investor RelationsEmail: [email protected] [email protected] DATASEA INC. CONSOLIDATED BALANCE SHEETS DECEMBER 31,2024 JUNE 30,2024 (UNAUDITED) ASSETS CURRENT ASSETS Cash $ 268,101 $ 181,262 Accounts receivable 210,980 718,546 Inventory, net 319,932 153,583 Value-added tax prepayment 111,300 107,545 Prepaid expenses and other current assets 684,783 1,486,956 Total current assets 1,595,096 2,647,892 NONCURRENT ASSETS Property and equipment, net 41,399 48,466 Intangible assets, net 4,081,544 546,001 Right-of-use assets, net 185,494 49,345 Total noncurrent assets 4,308,437 643,812 TOTAL ASSETS $ 5,903,533 $ 3,291,704 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 314,367 $ 1,075,641 Unearned revenue 135,514 49,239 Accrued expenses and other payables 499,637 596,714 Due to related parties 411,619 654,560 Operating lease liabilities 79,308 53,530 Bank loan payable 1,119,860 1,170,298 Total current liabilities 2,560,305 3,599,982 NONCURRENT LIABILITIES Operating lease liabilities 116,820 - Total noncurrent liabilities 116,820 - TOTAL LIABILITIES 2,677,125 3,599,982 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY (DEFICIT) Common stock, $0.001 par value, 25,000,000 shares authorized, 7,164,402 and 3,589,620 shares issued and outstanding as of December 31, 2024 and June 30, 2024 , respectively 7,164 3,589 Additional paid-in capital 45,633,189 38,957,780 Accumulated comprehensive income 134,302 242,208 Accumulated deficit (42,538,589) (39,440,322) TOTAL COMPANY STOCKHOLDERS' EQUITY (DEFICIT) 3,236,066 (236,745) Noncontrolling interest (9,658) (71,533) TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 3,226,408 (308,278) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 5,903,533 $ 3,291,704 The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31, 2024 2023 2024 2023 Revenues $ 20,456,404 $ 11,348,469 $ 41,537,498 $ 18,229,212 Cost of revenues 20,038,952 11,246,234 40,923,065 18,052,242 Gross profit 417,452 102,235 614,433 176,970 Operating expenses Selling 407,669 1,149,944 1,403,718 1,234,391 General and administrative 1,173,733 623,456 2,302,136 1,316,516 Research and development 74,402 117,371 177,481 272,375 Total operating expenses 1,655,804 1,890,771 3,883,335 2,823,282 Loss from operations (1,238,352) (1,788,536) (3,268,902) (2,646,312) Non-operating income (expenses) Other income (expenses), net 109,761 (46,187) 165,587 (54,051) Interest income 875 1,623 4,930 1,729 Total non-operating income (expenses), net 110,636 (44,564) 170,517 (52,322) Loss before income tax (1,127,716) (1,833,100) (3,098,385) (2,698,634) Income tax - - - - Loss before noncontrolling interest from continuing operations (1,127,716) (1,833,100) (3,098,385) (2,698,634) Income before noncontrolling interest from discontinued operations - - - 833,546 Less: loss attributable to noncontrolling interest from continuing operations 8,562 (61) (118) (9,993) Less: loss attributable to noncontrolling interest from discontinued operations - - - Net loss attribute to noncontrolling interest 8,562 (61) (118) (9,993) Net loss to the Company from continuing operations (1,136,278) (1,833,039) (3,098,267) (2,688,641) Net income to the Company from discontinued operations - - - 833,546 Net loss to the Company (1,136,278) (1,833,039) (3,098,267) (1,855,095) Other comprehensive item Foreign currency translation gain (loss) attributable to the Company (94,752) 34,601 (107,906) (126,615) Foreign currency translation gain attributable to noncontrolling interest 19,296 116 60,602 29,850 Comprehensive loss attributable to the Company $ (1,231,030) $ (1,798,438) $ (3,206,173) $ (1,981,710) Comprehensive income attributable to noncontrolling interest $ 27,858 $ 55 $ 60,484 $ 19,857 Basic and diluted net loss per share $ (0.16) $ (0.72) $ (0.56) $ (0.82) Weighted average shares used for computing basic and diluted loss per share * 7,170,852 2,538,286 5,582,115 2,250,711 * retroactively reflect 1-for-15 reverse stock split effective on January 19, 2024 The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY SIX AND THREE MONTHS ENDED DECEMBER 31, 2024 AND 2023 (UNAUDITED) Common Stock Additional paid-in Accumulated Accumulated other comprehensive Noncontrolling Shares Amount capital deficit income Total interest Balance at July 1, 2024 3,589,620 $ 3,590 $ 38,957,780 $ (39,440,322) $ 242,208 $ (236,745) $ (71,533) Net loss - - - (1,961,989) - (1,961,989) (8,680) Noncontrolling interest disposal at closure of the entity - - - - - - 1,391 Issuance of common stock for equity financing 692,308 692 1,958,059 - - 1,958,751 - Issuance of common stock for equity financing - related parties 1,932,224 1,932 3,978,449 - - 3,980,381 - Shares issued for stock compensation expense 75,000 75 374,925 - - 375,000 - Shares issued for purchase of intangible assets from the Company's major shareholders 797,850 798 (798) - - - - Foreign currency translation gain (loss) - - - - (13,154) (13,154) 41,306 Balance at September 30, 2024 7,087,002 7,087 45,268,415 (41,402,311) 229,054 4,102,245 (37,516) Net loss - - - (1,136,278) - (1,136,278) 8,562 Forgiveness of debt by shareholder - - 183,351 - - 183,351 - Shares issued for stock compensation expense 77,400 77 181,423 - - 181,500 - Foreign currency translation gain (loss) - - - - (94,752) (94,752) 19,296 Balance at December 31, 2024 7,164,402 $ 7,164 $ 45,633,189 $ (42,538,589) $ 134,302 $ 3,236,066 $ (9,658) Balance at July 1, 2023 1,889,315 $ 1,889 $ 24,148,868 $ (28,063,258) $ 393,252 $ (3,519,249) $ (60,848) Net loss - - - (22,056) - (22,056) (9,932) Issuance of common stock for equity financing 685,940 686 8,060,600 - - 8,061,286 - Shares issued for stock compensation expense - - 20,100 - - 20,100 - Foreign currency translation loss - - - - (161,216) (161,216) (8) Balance at September 30, 2023 2,575,255 2,575 32,229,568 (28,085,314) 232,036 4,378,865 (70,788) Net loss - - - (1,833,039) - (1,833,039) (61) Shares issued for stock compensation expense - - 22,103 - - 22,103 - Foreign currency translation gain - - - - 34,601 34,601 116 Balance at December 31, 2023 2,575,255 $ 2,575 $ 32,251,671 $ (29,918,353) $ 266,637 $ 2,602,530 $ (70,733) The accompanying notes are an integral part of these consolidated financial statements. DATASEA INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED DECEMBER 31, 2024 2023 Cash flows from operating activities: Loss including noncontrolling interest $ (3,098,385) $ (1,865,088) Adjustments to reconcile loss including noncontrolling interest to net cash used in operating activities: Gain on disposal of subsidiary - (833,546) Bad debt reversal (7,005) - Depreciation and amortization 395,741 276,116 Loss on disposal of fixed assets 3,155 - Operating lease expense 77,320 107,355 Forgiveness of debt by shareholder 184,663 - Stock compensation expense 556,500 42,203 Changes in assets and liabilities: Accounts receivable 504,995 (52,805) Inventory (168,864) 59,809 Value-added tax prepayment (4,710) (25,932) Prepaid expenses and other current assets 802,142 (2,589,743) Accounts payable (759,065) (138,820) Unearned revenue 87,317 (462,043) Accrued expenses and other payables (90,587) (39,242) Payment on operating lease liabilities (70,789) (111,547) Net cash used in operating activities (1,587,572) (5,633,283) Cash flows from investing activities: Acquisition of property and equipment (7,255) (3,683) Acquisition of intangible assets (3,950,272) (68,098) Cash disposed due to disposal of subsidiary - (35) Net cash used in investing activities (3,957,527) (71,816) Cash flows from financing activities: Proceeds from (repayment to) related parties (239,307) 116,841 Proceeds from loan payables - 153,659 Repayment of loan payables (40,698) (2,090,005) Net proceeds from issuance of common stock 5,939,133 8,061,286 Net cash provided by financing activities 5,659,128 6,241,781 Effect of exchange rate changes on cash (27,190) (118,694) Net increase in cash 86,839 417,988 Cash, beginning of period 181,262 19,728 Cash, end of period $ 268,101 $ 437,716 Supplemental disclosures of cash flow information: Cash paid for interest $ 17,973 $ 10,535 Cash paid for income tax $ - $ - Supplemental disclosures of non-cash financing activities: Right-of-use assets obtained in exchange for operating lease liabilities $ 196,783 $ 124,824 Transfer of debt owing to the Company's' CEO to Mr. Wanli Kuai $ - $ 727,503 IMPORTANT NOTICE TO USERS The information provided is a summary only, please refer to the Form 10-Q for the full text of this notice. All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our Forms 10-Q and 10-K. SOURCE Datasea Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Datasea Reports Second Fiscal Quarter 2025 Revenue of $20.5 Million, Up 81.4% Year-over-Year

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News