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Datasea Reports Record Fiscal Year 2025 Revenue of $71.62 Million, Up 199% Year-over-Year

prnewswire.com

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. (NASDAQ: 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

Business Highlights

AI Multimodal Digitalization Segment

Acoustic High-Tech Segment

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:

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,

2025

June 30,

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

SOURCE Datasea Inc.