Datasea Reports Third Fiscal Quarter 2025 Revenue of $10.4 Million Up 653.6% Year-over-Year
PR Newswire
BEIJING, May 15, 2025
DTSS' AI-Powered Technology Serves as a Unifying Core Innovation for its
5G Multimodal Digital Platform and Acoustic High-Tech Segment
BEIJING, May 15, 2025 /PRNewswire/ -- Datasea Inc. $(DTSS)$ ("Datasea" or the "Company"), a Nevada-based technology company specializing in 5G+AI multimodal digital solutions and acoustic high-tech innovations, today announced its financial results for the third fiscal quarter ended March 31, 2025. The Company reported revenue of $10.4 million, up 653.6% compared to $1.38 million for the same period of fiscal 2024. For the first nine months of the year, the Company reported revenue of $51.9 million, up 164.8% compared to revenue of $19.6 million for the same period of fiscal year 2024.
Ms. Zhixin Liu, CEO of Datasea, commented, "We are pleased to have delivered robust year-over-year revenue growth. The period's revenue was driven by the continued strong performance and market expansion of the Company's 5G+AI multimodal digital segment in China, supported by its growing adoption across a spectrum of industries resulting in long-term customer contracts. In addition, the Company's acoustic high-tech products gained traction through strategic retail placement and new product innovation. The strength of our 5G+AI multimodal data platform and the market adoption of our acoustic products reinforce our vision of redefining digital and physical experiences through innovation."
Financial Highlights
-- Revenue: Revenue for the third fiscal quarter of 2025 was $10.4 million,
an increase of 653.6% compared to revenue of $1.4 million for the third
fiscal quarter of 2024. This increase was primarily driven by the growth
of the Company's 5G+AI multimodal digital business in China, primarily
due to the continuous enhancement of its 5G multimodal digital products
and services through the empowerment of AI technology.
-- Gross Profit: Gross profit for the third fiscal quarter of 2025 was $0.3
million and a gross margin was 2.9%. This marks an improvement from the
same period in the prior year when the Company recorded gross profit of
$0.01 million and a gross margin of 0.7%.
-- Net Loss: Net loss for the third fiscal quarter of 2025 was $1.8 million,
which marks a significant improvement from the same period in the prior
year when the Company recorded a net loss of $4.1 million.
-- Financial Condition: The Company's cash balance increased by 378.2% to
$0.9 million from fiscal year end 2024, and accounts receivable dropped
by 93.2% to $0.05 million, improving capital turnover. The Company's
inventory was $0.32 million, an increase of 166.7% from fiscal year end
2024, which reflects the increase in customer orders from the acoustic
high-tech business. The net value of intangible assets rose 596.9% to
$3.8 million, underscoring the Company's growing innovation capacity and
long-term competitiveness.
Business Segment Highlights - 5G+AI Multimodal Digital Segment
Datasea continues to be a leader in China's 5G+AI digital service sector. Notable developments during the third quarter include:
-- The generation of $38.3 million in revenue from Qingdao Ruizhi Yixing
between July 1, 2024 and March 31, 2025.
-- Active contracts that include additional customers Shixun Network,
Xiaoming Technology, Xinfanfa, and Jiajie Technology.
-- Expansion into high-demand industry sectors including finance, healthcare,
logistics and beauty.
-- Technology platforms that are now able to provide SaaS-based services to
over 52 million enterprises and 124 million individual business owners in
China.
Business Segment Highlights - Acoustic High-Tech Segment
Datasea's "Acoustic + AI" product ecosystem continued to gain momentum in the third quarter:
-- The placement of acoustic products in 463 beauty and health stores in
Northern China that demonstrate the growing market acceptance
of Datasea's acoustic high-tech products and the success of its strategic
plan to position these products in certain sectors including the beauty
and body care industry.
-- New consumer-facing products launched or in development include the
"Tianer" Air Sterilizers and sleep-aid devices.
Business Outlook
Datasea reaffirms its full fiscal year 2025 revenue guidance of approximately $90 million, representing a 275% increase over fiscal year 2024. This growth is expected to be fueled by existing 5G+AI multimodal digital communications long-term contracts and a revenue ramp attributable to the extensive placement of its acoustic high-tech products.
The Company also intends to drive profitability by continuing to scale its high-margin acoustic high-tech products and offering technical services through the Company's core AI platform. It also plans to accelerate international market entry of the acoustic high-tech segment into international market and expand its acoustic high-tech business through strategic partnerships and mergers & acquisitions.
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 Relations
Email: investorrelations@shuhaixinxi.com
sunhezhi@shuhaixinxi.com
DATASEA INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, JUNE 30,
2025 2024
------------- -------------
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash $ 866,737 $ 181,262
Accounts receivable 49,066 718,546
Inventory, net 316,135 153,583
Value-added tax prepayment 143,300 107,545
Prepaid expenses and other current
assets 614,558 1,486,956
------------ ------------
Total current assets 1,989,796 2,647,892
NONCURRENT ASSETS
Property and equipment, net 36,620 48,466
Intangible assets, net 3,805,383 546,001
Right-of-use assets, net 322,574 49,345
------------ ------------
Total noncurrent assets 4,164,577 643,812
TOTAL ASSETS $ 6,154,373 $ 3,291,704
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable $ 392,559 $ 1,075,641
Unearned revenue 140,213 49,239
Accrued expenses and other payables 476,644 596,714
Due to related parties 25,264 654,560
Operating lease liabilities 139,895 53,530
Bank loan payable 1,957,315 1,170,298
------------ ------------
Total current liabilities 3,131,890 3,599,982
NONCURRENT LIABILITIES
Operating lease liabilities 189,989 -
------------ ------------
Total noncurrent liabilities 189,989 -
------------ ------------
TOTAL LIABILITIES 3,321,879 3,599,982
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value,
25,000,000 shares authorized,
7,651,111 and 3,589,620 shares
issued and outstanding as of
March 31, 2025 and June 30,
2024 , respectively 7,651 3,589
Additional paid-in capital 47,018,873 38,957,780
Accumulated comprehensive income 137,323 242,208
Accumulated deficit (44,321,587) (39,440,322)
------------ ------------
TOTAL COMPANY STOCKHOLDERS'
EQUITY (DEFICIT) 2,842,260 (236,745)
Noncontrolling interest (9,766) (71,533)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) 2,832,494 (308,278)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 6,154,373 $ 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 NINE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
-------------------------- --------------------------
2025 2024 2025 2024
------------ ------------ ------------ ------------
Revenues $ 10,353,977 $ 1,383,001 $ 51,891,475 $ 19,612,213
Cost of revenues 10,056,187 1,373,130 50,979,252 19,425,372
----------- ----------- ----------- -----------
Gross profit 297,790 9,871 912,223 186,841
----------- ----------- ----------- -----------
Operating expenses
Selling 185,354 970,443 1,589,072 2,204,834
General and
administrative 1,534,383 3,075,941 3,836,519 4,392,457
Research and
development 347,532 71,178 525,013 343,553
----------- ----------- ----------- -----------
Total operating
expenses 2,067,269 4,117,562 5,950,604 6,940,844
----------- ----------- ----------- -----------
Loss from
operations (1,769,479) (4,107,691) (5,038,381) (6,754,003)
Non-operating
income (expenses)
Other income
(expenses),
net (13,629) (34,351) 151,958 (88,402)
Interest income 16 217 4,946 1,946
----------- ----------- ----------- -----------
Total non-operating
income (expenses),
net (13,613) (34,134) 156,904 (86,456)
----------- ----------- ----------- -----------
Loss before income
tax (1,783,092) (4,141,825) (4,881,477) (6,840,459)
Income tax - - - -
----------- ----------- ----------- -----------
Loss before
noncontrolling
interest from
continuing
operations (1,783,092) (4,141,825) (4,881,477) (6,840,459)
Income before
noncontrolling
interest from
discontinued
operations - - - 833,546
----------- ----------- ----------- -----------
Less: loss
attributable to
noncontrolling
interest from
continuing
operations (94) (105) (212) (10,098)
Less: loss
attributable to
noncontrolling
interest from
discontinued
operations - - - -
----------- ----------- ----------- -----------
Net loss attribute
to noncontrolling
interest (94) (105) (212) (10,098)
----------- ----------- ----------- -----------
Net loss to the
Company from
continuing
operations (1,782,998) (4,141,720) (4,881,265) (6,830,361)
Net income to the
Company from
discontinued
operations - - - 833,546
----------- ----------- ----------- -----------
Net loss to the
Company (1,782,998) (4,141,720) (4,881,265) (5,996,815)
Other
comprehensive
item
Foreign currency
translation gain
(loss)
attributable to
the Company 3,021 (15,969) (104,885) (142,584)
Foreign currency
translation gain
(loss)
attributable to
noncontrolling
interest (14) (42) 60,588 66
----------- ----------- ----------- -----------
Comprehensive loss
attributable to
the Company $(1,779,977) $(4,157,689) $(4,986,150) $(6,139,399)
=========== =========== =========== ===========
Comprehensive
income (loss)
attributable to
noncontrolling
interest $ (108) $ (147) $ 60,376 $ (10,032)
=========== =========== =========== ===========
Basic and diluted
net loss per
share $ (0.24) $ (1.55) $ (0.79) $ (2.49)
=========== =========== =========== ===========
Weighted average
shares used for
computing basic
and diluted loss
per share * 7,432,997 2,666,438 6,217,993 2,413,014
=========== =========== =========== ===========
* 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 CASH FLOWS
(UNAUDITED)
NINE MONTHS
ENDED MARCH 31,
--------------------------
2025 2024
------------ ------------
Cash flows from operating activities:
Loss including noncontrolling
interest $(4,881,477) $(6,006,913)
Adjustments to reconcile loss
including noncontrolling interest
to net cash used in operating
activities:
Gain on disposal of subsidiary - (833,546)
Bad debt reversal (6,994) -
Depreciation and amortization 774,710 412,333
Loss on disposal of fixed assets 4,503 589
Operating lease expense 102,252 137,703
Loan forgiveness by shareholder 21,261 -
Stock compensation expense 1,663,812 2,849,572
Changes in assets and liabilities:
Accounts receivable 667,009 (16,190)
Inventory (164,310) 61,298
Value-added tax prepayment (36,673) (42,318)
Prepaid expenses and other current
assets 872,229 (1,575,526)
Accounts payable (679,818) (210,979)
Unearned revenue 91,695 (467,475)
Accrued expenses and other payables (114,569) (129,164)
Payment on operating lease liabilities (99,086) (133,736)
----------- -----------
Net cash used in operating activities (1,785,456) (5,954,352)
Cash flows from investing activities:
Acquisition of property and equipment (7,243) (3,692)
Acquisition of intangible assets (4,036,533) (105,184)
Cash disposed due to disposal of
subsidiary - (35)
----------- -----------
Net cash used in investing activities (4,043,776) (108,911)
Cash flows from financing activities:
Proceeds from (repayment to) related
parties (184,283) 417,174
Proceeds from loan payables 839,229 -
Repayment of loan payables (40,629) (2,269,329)
Net proceeds from issuance of common
stock 5,939,133 8,061,286
----------- -----------
Net cash provided by financing
activities 6,553,450 6,209,131
Effect of exchange rate changes on
cash (38,743) (113,067)
----------- -----------
Net increase in cash 685,475 32,801
Cash, beginning of period 181,262 19,728
----------- -----------
Cash, end of period $ 866,737 $ 52,529
=========== ===========
Supplemental disclosures of cash flow
information:
Cash paid for interest $ 26,173 $ 15,019
=========== ===========
Cash paid for income tax $ - $ -
=========== ===========
Supplemental disclosures of non-cash
financing activities:
Right-of-use assets obtained in
exchange for operating lease
liabilities $ 356,566 $ 125,138
=========== ===========
Transfer of debt owing to the
Company's' CEO to Mr. Wanli Kuai $ - $ 729,338
=========== ===========
Shares issued for paying officers'
accrued salary and bonus $ 194,062 $ 359,598
=========== ===========
Loan forgiveness by shareholder $ 440,947 $ -
=========== ===========
The accompanying notes are an integral part of these consolidated
financial statements.
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.
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SOURCE Datasea Inc.
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May 15, 2025 09:30 ET (13:30 GMT)
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