DTSS Achieves Fourth Quarter Net Income Breakeven Driven by
Cutting-Edge Acoustics and AI Multimodal Digitalization;
Ongoing Commercialization Updates in the Coming Weeks
BEIJING, Sept. 26, 2025 /PRNewswire/ -- Datasea Inc. $(DTSS)$ ("Datasea" or the "Company"), a Nevada-based high-tech enterprise engaged in acoustic high-tech products and services and AI multimodal digitalization, today announced its financial results for the fiscal year ended June 30, 2025.
The Company reported record revenue of $71.62 million, an increase of 198.7% from $23.97 million in fiscal year 2024. Gross profit reached $2.44 million, up 415.5% from $0.47 million year-over-year. In the fourth quarter of fiscal year 2025, the Company achieved net income breakeven as adjusted for non-cash depreciation and amortization.
Management Commentary
Ms. Zhixin Liu, Chief Executive Officer of Datasea, stated, "Our operating and financial results for fiscal year 2025 represents a milestone in Datasea's corporate growth. We nearly tripled our revenue due to the success of our dual-engine business segments of AI multimodal digitalization and acoustic high-tech. Further, in the fourth quarter, we achieved adjusted net income breakeven for the first time, signaling a transition from building scale to achieving profitability and sustainable growth."
"On the business side, AI Multimodal Digitalization continues to expand through long-term customer contracts, while Acoustic + AI Solutions achieved significant progress, especially in delivering comprehensive solutions. These results reflect recognition from the marketplace as well as the resilience and viability of our innovation-driven business model. We believe that we have established a solid foundation for achieving long-term goals and maximizing shareholder value."
Fiscal Year 2025 Financial Highlights
-- Revenue: $71.62 million, an increase of 198.7% compared to $23.97 million
for fiscal year 2024, through innovative technology and cost advantages
in AI multimodal digitalization, a stable client base, and scaled growth
that minimizes costs and increases margins.
-- Gross Profit: $2.44 million, an increase of 415.5% compared to $0.47
million in fiscal year 2024, with gross margin improvement primarily
attributable to the delivery of highly effective margin solutions in our
core businesses.
-- Net Income: Breakeven in the fourth quarter of fiscal 2025, as adjusted
for non-cash amortization and depreciation. Net loss for the year was
$5.09 million compared to $15.7 in fiscal year 2024, a year-over-year
decrease of 67.6%.
-- Intangible Assets: $3.50 million, an increase of 540.3% from $0.55
million in the prior year, mainly due to significant growth in the value
of core intellectual property, such as patents, which reflect the success
of the Company's "asset-light, high-value" strategic transformation.
Business Highlights
AI Multimodal Digitalization Segment
-- As one of the Company's core businesses, AI multimodal services delivered
strong growth in fiscal year 2025 with revenue increasing by 199.49%
year-over-year to $70.68 million, contributing significantly to overall
performance.
-- Powered by its proprietary AI platform, the Company provided standardized
platform offerings and customized solutions for clients across numerous
industries.
-- Newly developed high-margin customized solutions including SME services,
digital rural platforms, and new media marketing systems, were
commercialized at scale, contributing revenue of approximately RMB 8.9
million (US$ 1.24 million) and emerged as a new driver of growth.
-- The number of core clients increased from eight to 15 large enterprises
with several clients contributing over $10 million in annual revenue.
Acoustic High-Tech Segment
-- Positioned 'Acoustics + AI + Application Scenarios' with AI embedded
acoustic technologies serving as a technical base for an array of
products and services spanning multiple industry sectors.
-- Continuous technological breakthroughs and scenario implementations
advanced the Company's R&D in 'Acoustics + Neuro-Regulation,' with
progress achieved in brain-computer interfaces, cardiac signal
intervention, and foot acupoint stimulation.
-- The Company recorded revenue of RMB 3.7 million (US$ 0.5 million) from
comprehensive acoustic solutions, marking a strategic shift from single
hardware sales to high-margin solution products and services.
-- Beyond traditional enterprises and retail clients, the Company expanded
its base and deployed its acoustic products into 463 beauty and health
stores, evolving beyond its B2C focus and building a robust B2B sales
network.
Business Outlook
Looking ahead to fiscal year 2026 and beyond, Datasea will continue to advance its dual growth engines of AI Multimodal Digitalization + Acoustic High-Tech to drive diversified high-tech growth:
1. The Deepening of the AI Multimodal PlatformAs a pioneer in China's AI
multimodal digital field, Datasea will continue to upgrade its
proprietary AI multimodal platform, focusing on delivering more
high-margin solutions in SME digitalization and new media marketing, and
expanding recurring revenue from 'SaaS Subscriptions + Customized
Solutions'.
2. Acoustic Empowerment in HealthcareIn acoustics, the Company will
accelerate R&D in 'acoustics + neuro-regulation', advancing applications
in brain-computer interfaces, neural signal intervention, and foot
stimulation. Combined with its retail presence in over 500 beauty and
health stores across China, Datasea aims to build a closed-loop system of
'Detection -- Analysis -- Diagnosis -- Intervention' for
non-pharmacological health management. The Company has also entered the
health intelligent wearables market, further extending the depth and
diversity of acoustic applications in healthcare.
3. M&A StrategyIn China, Datasea will seek to promote acoustic product
penetration into the healthcare, medical beauty, agriculture, and
industrial fields, and accelerate its capabilities and market channels
through acquisitions. In the United States, through its wholly owned
subsidiary, Datasea Acoustics LLC, the Company is planned in promoting
the distribution of acoustic products and patent deployment, and is
working with US partners to expand local channels. Internationally, the
Company will advance patent collaboration and technology acquisitions
with partners in North America, creating dual barriers of global patent
protection and market penetration.
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.
FINANCIAL TABLES TO FOLLOW
DATASEA INC.
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2025 2024
------------- -------------
ASSETS
CURRENT ASSETS
Cash $ 620,807 $ 181,262
Accounts receivable 1,374,180 718,546
Inventory, net 206,610 153,583
Value-added tax prepayment 137,025 107,545
Prepaid expenses and other current
assets 583,650 1,486,956
------------ ------------
Total current assets 2,922,272 2,647,892
NONCURRENT ASSETS
Property and equipment, net 25,560 48,466
Intangible assets, net 3,495,984 546,001
Right-of-use assets, net 292,065 49,345
------------ ------------
Total noncurrent assets 3,813,609 643,812
------------ ------------
TOTAL ASSETS $ 6,735,881 $ 3,291,704
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable $ 420,038 $ 1,075,641
Unearned revenue 150,088 49,239
Accrued expenses and other payables 547,706 596,714
Due to related parties 6,126 654,560
Operating lease liabilities 128,525 53,530
Bank loan payable 2,374,767 1,170,298
------------ ------------
Total current liabilities 3,627,250 3,599,982
NONCURRENT LIABILITIES
Operating lease liabilities 166,436 -
------------ ------------
Total noncurrent liabilities 166,436 -
------------ ------------
TOTAL LIABILITIES 3,793,686 3,599,982
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value,
25,000,000 shares authorized,
8,128,127 and 3,589,620 shares
issued and outstanding as of June
30, 2025 and 2024, respectively 8,128 3,589
Additional paid-in capital 47,331,510 38,957,780
Accumulated comprehensive income 138,586 242,208
Accumulated deficit (44,526,016) (39,440,322)
------------ ------------
TOTAL COMPANY STOCKHOLDERS'
EQUITY (DEFICIT) 2,952,208 (236,745)
Noncontrolling interest (10,013) (71,533)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) 2,942,195 (308,278)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 6,735,881 $ 3,291,704
============ ============
The accompanying notes in the Company's 10-K as filed with the SEC
are an integral part of these consolidated financial statements.
DATASEA INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
YEARS ENDED
JUNE 30,
---------------------------
2025 2024
------------ -------------
Revenues $ 71,616,820 $ 23,975,867
Cost of revenues 69,172,872 23,501,762
----------- ------------
Gross profit 2,443,948 474,105
----------- ------------
Operating expenses
Selling 1,980,224 3,279,627
General and administrative 4,703,443 8,960,523
Research and development 914,996 359,342
----------- ------------
Total operating expenses 7,598,663 12,599,492
----------- ------------
Loss from operations (5,154,715) (12,125,387)
Non-operating income (expenses)
Other income (expenses), net 70,169 (97,893)
Interest income 5,016 1,975
----------- ------------
Total non-operating income
(expenses), net 75,185 (95,918)
----------- ------------
Loss before income tax (5,079,530) (12,221,305)
Income tax 6,596 -
----------- ------------
Loss before noncontrolling interest
from continuing operations (5,086,126) (12,221,305)
Income before noncontrolling interest
from discontinued operations - 833,546
----------- ------------
Less: loss attributable to
noncontrolling interest from
continuing operations (432) (10,695)
Less: loss attributable to
noncontrolling interest from
discontinued operations - -
----------- ------------
Net loss attribute to noncontrolling
interest (432) (10,695)
----------- ------------
Net loss to the Company from
continuing operations (5,085,694) (12,210,610)
Net income to the Company from
discontinued operations - 833,546
Net loss to the Company (5,085,694) (11,377,064)
Other comprehensive item
Foreign currency translation gain
(loss) attributable to the Company (103,622) (151,044)
Foreign currency translation gain
attributable to noncontrolling
interest 60,588 10
----------- ------------
Comprehensive loss attributable to
the Company $(5,189,316) $(11,528,108)
=========== ============
Comprehensive income attributable to
noncontrolling interest $ 60,156 $ (10,685)
=========== ============
Basic and diluted net loss per share $ (0.77) $ (4.38)
=========== ============
Weighted average shares used for
computing basic and diluted loss per
share * 6,610,842 2,597,077
=========== ============
* retroactively reflect 1-for-15 reverse stock split effective
on January 19, 2024
The accompanying notes the Company's 10-K as filed with the SEC
are an integral part of these consolidated financial statements.
DATASEA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED
JUNE 30,
---------------------------
2025 2024
------------ -------------
Cash flows from operating
activities:
Loss including noncontrolling
interest $(5,086,126) $(11,387,759)
Adjustments to reconcile loss
including noncontrolling interest to
net cash used in operating
activities:
Gain on disposal of subsidiary - (833,546)
Bad debt expense 18,855 -
Inventory impairment 99,478 -
Depreciation and amortization 1,139,264 494,480
Loss on disposal of fixed assets 17,196 2,979
Operating lease expense 136,506 167,969
Investment loss - 56,081
Loan forgiveness by shareholder 105,356 -
Stock compensation expense 1,892,842 6,749,326
Changes in assets and liabilities:
Accounts receivable (658,711) (717,220)
Inventory (153,179) 91,076
Value-added tax prepayment (29,953) (51,078)
Prepaid expenses and other current
assets 877,711 (810,421)
Accounts payable (651,887) 597,744
Unearned revenue 101,051 (472,584)
Accrued expenses and other
payables (45,306) (108,736)
Payment on operating lease
liabilities (137,777) (177,194)
----------- ------------
Net cash used in operating activities (2,374,680) (6,398,883)
Cash flows from investing
activities:
Acquisition of property and
equipment (8,129) (6,868)
Acquisition of intangible assets (4,077,068) (161,054)
Cash disposed due to disposal of
subsidiary - (35)
----------- ------------
Net cash used in investing activities (4,085,197) (167,957)
Cash flows from financing
activities:
Proceeds from (repayment to)
related parties (203,218) 360,804
Proceeds from loan payables 2,374,350 -
Repayment of loan payables (1,164,895) (1,582,513)
Net proceeds from issuance of
common stock 5,939,133 8,061,286
----------- ------------
Net cash provided by financing
activities 6,945,370 6,839,577
Effect of exchange rate changes on
cash (45,948) (111,203)
----------- ------------
Net increase in cash 439,545 161,534
The accompanying notes the Company's 10-K as filed with the SEC
are an integral part of these consolidated financial statements.
Investor and Media Contact:
Datasea Investor Relations
Email: investorrelations@shuhaixinxi.com
sunhezhi@shuhaixinxi.com
Precept Investor Relations LLC
David Rudnick
+1 646-694-8538
david.rudnick@preceptir.com
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SOURCE Datasea Inc.
(END) Dow Jones Newswires
September 26, 2025 09:30 ET (13:30 GMT)