Datasea(US:DTSS)2022-10-01 00:23Financial Data and Key Metrics Changes - Datasea reported revenues of $17.08 million for the fiscal year ended June 30, 2022, a significant increase of $16.9 million or 9,653% compared to $0.17 million in the previous year [6][7] - The gross margin for the 12 months ended June 30, 2022, was 5.6%, with expectations for improvement due to economies of scale and increased brand recognition [10] - R&D expenses increased by $0.41 million or 48% year-on-year, totaling $1.26 million for the year ended June 30, 2022 [11] Business Line Data and Key Metrics Changes - The revenue from the 5G messaging business was $17.02 million, which included $11.93 million from 5G SMS and $3.26 million from value-added services [7][8] - The Smart City project generated $56,000 in revenue during the reporting period [7] Market Data and Key Metrics Changes - Datasea's customer base expanded across various provinces in China, including Beijing, Liaoning, and Guangdong, with agreements signed with over 11 industry customers [9] - The company aims to expand its global market exposure, particularly in North America, through the establishment of U.S. business subsidiaries [20] Company Strategy and Development Direction - Datasea's primary operational goals include providing best-in-class products in 5G messaging and acoustic intelligence, maximizing sustainable growth, and generating cash flows for shareholders [23] - The company is focusing on four key initiatives: enhancing digital communication, assisting companies in meeting marketing needs, investing in long-term growth areas, and leveraging innovation to provide unique solutions [24][26][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's development for the new fiscal year, citing a $41.72 million procurement agreement for 5G messaging services [15] - The management noted that while the current economic environment poses challenges, the fundamentals of China's economy are improving, and the company is well-positioned for future growth [19][33] Other Important Information - Datasea plans to invest approximately $10 million in technological development over the next three years [13] - The company has developed ultrasonic sound sterilization equipment with a 99.83% efficacy against COVID-19, with significant orders already placed [12][16] Q&A Session Summary Question: How will you describe the company's competitiveness in the 5G messaging and acoustic intelligence? - Management highlighted the large market potential in China, authorization by major operators, a comprehensive product portfolio, and strong industry relationships as key competitive advantages [37][39][40] Question: If the Smart City solutions are not generating significant revenue, why does the company decide to keep it? - Management emphasized the promising market position and the strong synergies between Smart City solutions and the 5G messaging and acoustic intelligence businesses [44][45]