Core Insights - Datasea Inc. reported a significant increase in gross profit and gross margin for the second quarter of fiscal year 2026, with gross profit rising by 278% year-over-year and gross margin expanding to 8.7% [4][7]. Financial Performance - Revenue for the six months ended December 31, 2025, is expected to be approximately $26.68 million [7]. - Gross profit is anticipated to be around $2.32 million, marking a 278% increase compared to the same period in fiscal year 2025 [7]. - Gross margin is projected to be approximately 8.70%, a notable improvement from 1.48% in the prior-year period [7]. Strategic and Operational Review - The company is transitioning towards profitability optimization and technology-driven value creation, moving away from a revenue scale-focused growth model [3]. - Key initiatives contributing to the improvement in gross profit and margin include a reduction in low-margin services, an increased focus on high-margin customized solutions, and enhanced cost controls [8]. Management Commentary - The CEO highlighted that the period ended December 31, 2025, represents a milestone in the company's strategic transformation, emphasizing the effectiveness of the shift towards high-value, technology-driven businesses [4][5]. Technology and Innovation - Datasea is advancing its core acoustic technologies and exploring applications in health management and intelligent devices, including non-invasive acoustic modulation and related health robot solutions [6]. - The company aims to deepen the application of high-margin 5G+AI multimodal digital solutions and increase the contribution of technology-oriented offerings within its business mix [5].

Supporting Phased Deployment of up to 10,000 Units Across a USD 215 Billion Beauty and Wellness Market BEIJING, Jan. 20, 2026 /PRNewswire/ -- Datasea Inc. (the "Company" or "Datasea"), a technology company specializing in acoustic high-tech innovation and AI-driven multimodal systems, today announced that Guozhong Times (Beijing) Technology Co., Ltd, a variable interest entity of Datasea Inc., together with its partner Yizhimei Technology, has officially launched an 18-month channel sales and market expans ...

Core Insights - Datasea Inc. has made significant advancements in acoustic-driven technologies aimed at brain-computer interfaces (BCI) and rehabilitation robotics, which are expected to support applications in embodied intelligence and health robotics within a multi-billion-dollar market [1][12]. Group 1: Technology Advancements - The company has developed two key acoustic technology initiatives focused on assistive communication and rehabilitation robot control, enhancing the application of BCI technologies [3][4]. - The assistive communication initiative aims to create a BCI-based system for recognizing user intentions and controlling external devices, particularly for patients with neurological conditions [4][5]. - The rehabilitation robotics initiative seeks to translate neural signals into structured control logic for upper-limb rehabilitation robots, improving the alignment of neural signal interpretation with robotic execution [6][7]. Group 2: Integration and Framework - Datasea's advancements build upon its existing acoustic-driven BCI technology framework, which addresses issues such as noise interference and signal stability during BCI signal acquisition [8][10]. - The company is establishing a complete technical loop that includes signal enhancement, personalized intent decoding, structured system control, and feedback mechanisms, laying a foundation for industrial-grade BCI technology deployment [10][11]. Group 3: Market Context - The global BCI market is projected to reach approximately USD 15–20 billion by 2030, with non-invasive BCI technologies expected to grow rapidly due to their safety and broader application potential [16]. - Key demand drivers for BCI technologies include medical rehabilitation, consumer electronics, and intelligent wearable devices, supported by a growing ecosystem for technology and application [12][16]. Group 4: Strategic Collaborations - Datasea has initiated collaborations with domestic health robotics companies to integrate its acoustic-driven BCI technologies into health robot systems, facilitating the transition from research and development to practical applications [11].

Core Viewpoint - Datasea Inc. has entered a strategic collaboration with Nanjing Linghang Intelligent Aviation Technology Co., Ltd. to explore the application of its acoustic enhancement technologies in the non-invasive brain-computer interface (BCI) and healthcare markets, addressing industry challenges such as EEG signal stability and decoding accuracy [1][2][7] Company Overview - Datasea Inc. is a leading provider of products and solutions in acoustic high tech and 5G-AI multimodal digitalization, leveraging advanced R&D technology as the core infrastructure for its offerings [12] - The company has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to facilitate its entry into the U.S. markets as part of its global expansion strategy [12] Collaboration Details - The collaboration will focus on system integration validation, engineering testing, and application-oriented exploration to lay a technical foundation for the commercialization of acoustic technologies in rehabilitation and healthcare [2][5] - Joint technical testing and application evaluations will assess the feasibility of incorporating acoustic enhancement modules into existing BCI and healthcare robot systems [5][7] Technological Innovations - Datasea will apply its advanced acoustic technologies to BCI applications, developing solutions such as sound-wave coupling enhancement mechanisms and real-time closed-loop vibration modulation methods to improve EEG signal acquisition quality and system stability [3][4][10] - The introduction of acoustic enhancement is expected to enhance signal acquisition stability and overall system reliability, supporting the progression of BCI technologies toward productization [7][11] Market Insights - The global brain-computer interface market is projected to exceed USD 15–20 billion by 2030, with non-invasive BCI technologies anticipated to be the fastest-growing segment due to their safety and broader application potential [8] - Key demand drivers over the next decade include medical rehabilitation, consumer electronics, and intelligent wearable devices [8][9] Management Perspective - The CEO of Datasea emphasized the long-term growth potential of BCI technology and the company's commitment to developing acoustic enhancement technology prototypes and validating their application in improving signal quality for non-invasive BCI systems [10][11]

Core Insights - Datasea has formed a strategic partnership with Yizhimei to develop an Acoustics Digital AI Shampooing Robot and Beauty & Health Intelligence System, aimed at transforming China's beauty and health industry through digital innovation [1][12] Industry Overview - The beauty and wellness market in China is projected to exceed RMB 1.5 trillion (approximately USD 210 billion), with high single-digit to double-digit annual growth driven by consumption upgrading and technological innovation [15] - The digital beauty, smart health management, and non-invasive wellness technology segments are among the fastest-growing sub-sectors, benefiting from increasing demand for personalized services and intelligent devices [15] Company Capabilities - Datasea will leverage its expertise in acoustic high-tech innovation, AI algorithms, and intelligent hardware integration to create a comprehensive system that enhances user operations and health detection [2][6] - The collaboration will enable a transition from traditional operating models to data-driven and intelligent service paradigms, improving service efficiency and customer retention [4][11] System Integration and Service Model - Datasea will integrate its Acoustics Digital AI system into Yizhimei's operational framework, allowing for scalable and replicable digital capabilities across its store network [3][6] - The revenue model includes system settlement service fees, technology service fees, and e-commerce platform service fees, ensuring predictable investment returns linked to actual store performance [7][10] Technological Advancements - The partnership will embed Datasea's acoustic algorithms and AI recognition models into Yizhimei's products, transforming them into intelligent health-service terminals [5][9] - The initiative aims to provide high-precision health assessments and sound-wave-based interventions, enhancing product competitiveness and establishing long-term technological advantages [9][11]

Core Insights - Datasea Inc. has made significant advancements in brain-computer interface (BCI) technologies, completing engineering-stage development of its Real-Time Closed-Loop Vibration-Enhanced BCI System and Acoustic-Coupled EEG Signal Enhancement System [1][2][4] - The company aims to leverage these technologies for applications in healthcare, neuromodulation, and intelligent interaction, pending further development and regulatory review [2][4] Technological Highlights - Datasea's BCI technologies focus on improving signal quality and decoding accuracy, addressing challenges faced by traditional BCIs that rely on static algorithms [3][4] - The real-time closed-loop vibration enhancement approach supports dynamic decoding and feedback-based optimization, potentially improving performance in complex environments [4] - Acoustic-coupled enhancement technology aims to assist in detecting and reconstructing missing EEG segments, improving signal-to-noise ratio and data completeness [5][4] Market Context - The global BCI market is projected to exceed USD 15–20 billion by 2030, with non-invasive BCI expected to be a fast-growing segment due to its safety and broader application potential [5][6] - Key demand drivers for BCI technologies include healthcare rehabilitation, consumer electronics, and intelligent wearables over the next decade [6] CEO Statement - The CEO of Datasea emphasized that the progress in acoustic technologies for BCIs establishes a competitive advantage through sound-wave coupling and closed-loop vibration enhancement [7] - The company believes its BCI innovations hold significant commercialization potential across various industries, including healthcare and intelligent interaction [8] Strategic Framework - Datasea's strategic framework focuses on "Acoustic Technology + Multi-Scenario Applications," aiming to advance innovation and accelerate the deployment of acoustics-driven solutions [8]

Core Viewpoint - Datasea Inc. has experienced recent fluctuations in its stock price and trading volume, but the company asserts that its operations and financial position remain stable, with no undisclosed material information affecting the market activity [2][3]. Financial Performance - For the first fiscal quarter of 2026, Datasea reported a gross profit of USD 1.17 million, representing a 4.9 times increase year-over-year, and an improvement in gross margin to 8.46% [3]. - The company is focused on high-margin, technology-driven solutions and is evaluating strategic measures to enhance market recognition of its financial progress and growth potential [3]. Strategic Initiatives - Datasea has achieved significant technological advancements in acoustic technologies and brain-computer interface applications, which are expected to strengthen its competitive advantages and growth momentum [4]. - The company has established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware to facilitate its entry into the U.S. market as part of its global expansion strategy [6]. Communication and Transparency - Datasea emphasizes the importance of transparent communication with investors and the market, committing to provide timely updates on its business progress in accordance with disclosure requirements [5].

Financial Performance - Revenues for the three months ended September 30, 2025, were $13,813,551, a decrease of 34.5% compared to $21,081,094 for the same period in 2024[10]. - Gross profit improved to $1,169,092 for the three months ended September 30, 2025, compared to $196,981 in the prior year, marking a significant increase[10]. - Operating expenses decreased to $1,457,715 for the three months ended September 30, 2025, down from $2,227,531 in 2024, a reduction of 34.5%[10]. - The net loss attributable to the Company for the three months ended September 30, 2025, was $201,026, compared to a net loss of $1,961,989 in the same period of 2024, reflecting an improvement of 89.8%[10]. - For the three months ended September 30, 2025, the Company reported a net loss of approximately $0.20 million, compared to a net loss of $1.96 million for the same period in 2024[32]. - The net loss for the three months ended September 30, 2025, was $413,389, a slight improvement from a net loss of $452,170 in the same period of 2024[47]. - Revenue for the same period was $13,813,551, a decrease of $7,267,543 or 34.47% compared to $21,081,094 in the previous year, due to a strategic contraction of low-margin business[167]. Assets and Liabilities - Total assets increased to $7,691,360 as of September 30, 2025, up from $6,735,881 as of June 30, 2025, representing a growth of 14.2%[9]. - Total current assets increased to $2,387,658 as of September 30, 2025, from $1,734,402 as of June 30, 2025, representing a growth of approximately 37.7%[47]. - Total liabilities increased to $4,564,383 as of September 30, 2025, from $3,735,390 as of June 30, 2025, indicating a rise of approximately 22.2%[47]. - The total stockholders' equity rose to $3,013,452 as of September 30, 2025, compared to $2,942,195 as of June 30, 2025, an increase of 2.4%[9]. - The Company had an accumulated deficit of approximately $44.73 million as of September 30, 2025[32]. Cash Flow and Investments - Cash and cash equivalents increased to $745,264 as of September 30, 2025, from $620,807 at the beginning of the period, representing a growth of 20.1%[14]. - Cash flows from operating activities generated $879,299 for the three months ended September 30, 2025, compared to a cash outflow of $732,655 in the same period of 2024[14]. - The Company acquired intangible assets amounting to $1,551,009 during the three months ended September 30, 2025[14]. - The total amount of unearned revenue increased to $180,195 as of September 30, 2025, up from $150,088 as of June 30, 2025, reflecting a growth of approximately 20.5%[111]. Stock and Equity Transactions - The Company issued 95,377 shares for stock compensation expense, contributing to an increase in additional paid-in capital to $47,582,488 as of September 30, 2025[11]. - The Company granted 398,925 restricted shares to Chairwoman and CEO Ms. Zhixin Liu for the acquisition of software copyrights, with the purchase accounted at a historical cost of $0[136]. - The Company recorded stock compensation expenses of $3,900 and $4,500 to independent directors for the three months ended September 30, 2025 and 2024, respectively[140]. - The Company issued 18,367 shares to a consultant, with a fair value of $36,000 recorded as stock compensation expense for the three months ended September 30, 2025[142]. Research and Development - Research and development expenses are expensed in the period incurred, primarily consisting of materials, salaries, and third-party fees[79]. - The Company achieved a major technological breakthrough in AI-enhanced acoustic coupling for neural regulation and precision medicine in August 2025, entering an accelerated commercialization stage[172]. - The Company has established in-depth cooperation with top research institutions to drive ongoing innovation in acoustic technologies[176]. - New product developments include ultrasonic disinfectants and AI medical robots, targeting healthcare and medical aesthetics sectors[199]. Strategic Initiatives - The Company established a wholly owned subsidiary, Datasea Acoustic, LLC, in Delaware on July 31, 2023, to expand its products to the North American market[30]. - The Company formed a joint venture, Nanjing Shuhai Equity Investment Fund Management Co. Ltd., with a 99% ownership interest to facilitate access to government funding for new technology development[20]. - Datasea plans to strengthen its competitive advantages through scaled sales and international deployment of high-margin acoustic high-tech products and AI multimodal technology solutions in fiscal year 2026[175]. - The Company is exploring options to raise additional funds through strategic investors or public offerings to support its operations and R&D[33]. Market and Product Development - Flagship products like the Tianer sterilization series and Star Dream sleep-aid systems are driving high-margin growth, with plans for overseas market expansion[192]. - The Company has built a comprehensive sound-based health ecosystem covering environmental sterilization, physiological regulation, cognitive enhancement, and sleep improvement[191]. - The Company is developing high-end clinical intervention systems for tertiary hospitals and portable therapeutic devices for community rehabilitation centers, extending neuromodulation applications[189]. - The Company is focusing on five key sub-sectors: acoustic healthcare, acoustic health, acoustic industry, acoustic agriculture, and acoustic IoT, leveraging cutting-edge technologies[206].

Core Insights - Datasea Inc. is transitioning from scale expansion to profitability optimization, resulting in a strategic restructuring of its revenue mix towards high-value, technology-driven businesses [4][7] - The company's gross margin increased significantly to 8.46%, up 753 basis points from the previous year, due to a focus on high-margin AI multimodal and acoustic technology solutions [4][7] Financial Performance - Revenue for the first quarter of fiscal 2026 was $13.81 million, a decrease of 34.5% compared to $21.08 million in the same quarter of 2025, attributed to the strategic optimization of its high technology business [7] - Gross profit rose to $1.17 million, a 5.9x increase from $0.02 million in the first quarter of 2025, reflecting improved cost efficiencies and a focus on profitability [7] - The gross margin improvement is linked to higher contributions from high-margin 5G+AI multimodal digital solutions and acoustic technology products [7] Business Segments - The core revenue driver was the 5G+AI multimodal digital business, contributing $13.32 million during the quarter, benefiting from the expanding industry in China [8] - New vertical solutions generated revenue of approximately RMB 6.53 million (around $0.92 million), including AI multimodal services for SMEs and digital rural services, enhancing overall profitability [8] Strategic Outlook - Datasea aims to achieve sustainable profitability and enhance its gross margin profile through continuous innovation and the synergistic development of its two core businesses [9] - The company plans to upgrade its proprietary AI multimodal platform and expand high-margin customized solutions and SaaS-based subscription services [13] - In the acoustic high-tech segment, Datasea will focus on R&D in 'Acoustics + AI + Neuro-Regulation' to create new growth opportunities in non-pharmacological health management [13]

Financial Performance - For the fiscal year ended June 30, 2025, the Company reported revenue of $71,616,820, an increase of $47,640,953, or 198.70% compared to the previous fiscal year[374]. - The primary revenue source was from 5G AI multimodal digital business, generating $70,682,408, which contributed to the overall revenue growth[446]. - The Company recorded a gross profit of $2,443,948, an increase of $1,969,843, or 415.49%, compared to the same period of the prior year[375]. - The company achieved a gross profit margin of 3.41%, up from 1.98% in the previous year, driven by a strategic increase in high-margin product sales[499]. - The company incurred a net loss of $5,085,694 for the year ended June 30, 2025, an improvement from a net loss of $11,377,064 in the prior year[444]. - Operating expenses decreased by $5,000,829, a reduction of 39.69% from $12,599,492 in the prior year[490]. - The company had a negative cash flow from operating activities of approximately $2.37 million for the year ended June 30, 2025[430]. - As of June 30, 2025, the company had an accumulated deficit of approximately $44.53 million[430]. - Net loss from continuing operations decreased by $7,124,916 or 58.4% to $5,085,694 for the year ended June 30, 2025, due to increased gross profit and reduced operating expenses[465]. - Cash balance increased by $439,545, or 242.49%, from $181,262 in 2024 to $620,807 in 2025[492]. Revenue Growth - The AI Multimodal Digitalization Business segment generated revenue of $70.68 million, a 199.49% increase from $23.60 million last year, driven by rapid expansion of core clients[376]. - Revenue from technical solutions related to AI multimodal services reached RMB 8.9 million (approximately USD 1.24 million), indicating successful implementation of the company's digital business[426]. - Revenue from Qingdao Ruizhi Yixing reached RMB 392,182,085.13 (approximately USD 54,775,147) from July 1, 2024, to June 30, 2025, through the sale of 5G+AI multimodal data recharge cards[405]. - From July 1, 2024, to June 30, 2025, revenue from Shuhun Network reached RMB 10,981,054.18 (approximately USD 1,533,698) through the sale of 5G+AI multimodal data cards[406]. Customer Base and Market Expansion - The Company expanded its customer base significantly, adding 14 beauty service companies and deploying products into 463 beauty and personal care salons across Northern China[378]. - The number of AI multimodal clients increased from 8 to 15, with leading clients contributing revenue exceeding $10 million each, indicating strong customer retention[384]. - Datasea serves over 52 million businesses and households across China, with more than 99% being SMEs, providing digital and intelligent services[467]. - The company aims to leverage its dual operational bases in China and the United States to pursue international opportunities and expand its market presence[382]. - The company aims to scale international markets over the next three to five years, particularly in North America, Europe, and Asia-Pacific, supported by acquisitions and localized market strategies[513]. Research and Development - The company has established a three-tier R&D system to ensure effective resource allocation and project progress[392]. - Research and development expenses rose by $555,654 or 154.6% to $914,996 for the year ended June 30, 2025, reflecting a focus on expanding 5G-related applications[457]. - The company plans to increase R&D investment, particularly in integrating acoustic technologies with AI, to drive future growth[502]. - The company plans to focus on R&D in neuro-regulation, brain-computer interfaces, and ultrasonic precision machining, promoting commercialization of new technologies[513]. Strategic Initiatives - Datasea's strategic objective includes establishing differentiated advantages in acoustic and digitalization technologies through continuous innovation and high-efficiency solutions[383]. - The M&A strategy focuses on technology enhancement, market synergy, and ecosystem improvement to accelerate technological breakthroughs and market expansion[396]. - The company is targeting innovative companies with core acoustic modules and sensor technologies for acquisitions to enhance its technological capabilities[401]. - The company aims to expand into the European market, promoting acoustic medical and intelligent manufacturing products through local collaborations[409]. - Strategic priorities include market expansion, M&A opportunities, and optimizing the product mix to enhance margins and profitability[506][508]. Operational Efficiency - The company operates 463 offline beauty salon locations and utilizes online live-streaming e-commerce channels to enhance market penetration for its "Datasea Tian Ear" disinfection series[389]. - The company is establishing localized operational systems in key overseas markets to enhance market responsiveness and reduce operational costs[403]. - The company reported allowances for slow-moving and obsolete inventory of $152,907 and $53,650 as of June 30, 2025, and 2024, respectively[519]. - The company maintains a $0 bad debt allowance for credit losses as of June 30, 2025, and 2024[518]. Environmental and Social Governance - The company is committed to integrating ESG principles into its operations, with initiatives leading to a 10% reduction in energy consumption per production line[433]. - The company emphasizes innovation-driven, green development, and aims to promote environmentally friendly technologies and products[511]. Financial Position - The company had a working capital deficit of $704,978 as of June 30, 2025, with a current ratio of 0.81:1, improving from a deficit of $952,090 and a current ratio of 0.74:1 in 2024[470]. - Net cash provided by financing activities was $6,945,370 for the year ended June 30, 2025, primarily from the sale of common stock[477]. - Outstanding bank loans rose to $2,374,767, reflecting a 102.92% increase from $1,170,298 in 2024[498]. - The company adopted the current expected credit loss (CECL) methodology effective July 1, 2023, with no transition adjustment required[516]. - The company has no off-balance sheet arrangements that could affect its financial condition or results of operations[512].