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What changed in DATASEA INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of DATASEA INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+740 added−843 removedSource: 10-K (2025-09-26) vs 10-K (2024-09-26)

Top changes in DATASEA INC.'s 2025 10-K

740 paragraphs added · 843 removed · 198 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

63 edited+226 added−269 removed26 unchanged
Biggest changeOur historical results are not necessarily indicative of the results that may be expected in the future. 6 Condensed Consolidated Statements of Operations Information Year Ended June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Revenue - third parties $ - $ - $ 69,541 $ 23,906,326 $ 23,975,867 Revenue - Parent provided service to WOFE 275,100 (275,100 ) - Revenue-Parent provided service to VIE 143,600 (143,600 ) - Revenue - WOFE provided service to VIE 489,386 (489,386 ) - Revenue - VIE purchased materials from WOFE 57,082 (57,082 ) Revenue - from VIE’s label that was used by WOFE 264,533 (264,533 ) - Revenue - WOFE purchased materials from VIE 57,082 (57,082 ) - Cost of Revenue - third parties 69,156 23,432,606 23,501,762 COST - VIE purchased materials from WOFE 57,082 (57,082 ) COST - WOFE purchased materials from VIE - 57,082 (57,082 ) - - Gross profit 418,700 - 489,771 738,253 (1,172,619 ) 474,105 Operating expenses 6,996,227 324,954 3,535,554 1,742,757 12,599,492 Operating expenses - VIE expenses, corresponding to services provided by WOFE 489,386 (489,386 ) - Operating expenses - WOFE expenses for using VIE’s label 264,533 (264,533 ) Operating expenses – WOFE expenses, corresponding to services provided by Parent 278,862 (278,862 ) Operating expenses - VIE expenses, corresponding to services provided by Parent 146,150 (146,150 ) - Loss from operations (6,577,527 ) (324,954 ) (3,589,178 ) (1,640,040 ) 6,312 (12,125,387 ) Other income (expenses), net (1,665 ) (61 ) 3,108 (97,300 ) (95,918 ) Income tax expense - Loss before noncontrolling interest (6,579,192 ) (325,015 ) (3,586,070 ) (1,737,340 ) 6,312 (12,221,305 ) Less: loss attributable to noncontrolling interest (10,695 ) (10,695 ) Net loss to the Company (6,579,192 ) (325,015 ) (3,586,070 ) (1,726,645 ) 6,312 (12,210,610 ) 7 Year Ended June 30, 2023 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Revenue - third parties $ - $ - $ - $ 7,045,311 $ 7,045,311 Revenue - Parent provided service to VIE 453,500 (453,500 ) - Revenue - WOFE’s label that was used by VIE 81,544 (81,544 ) - Revenue - from VIE’s label that was used by WOFE 751,125 (751,125 ) - Cost of Revenue - third parties 6,704,380 6,704,380 Gross profit 453,500 81,544 1,092,056 (1,286,169 ) 340,931 Operating expenses 5,082,029 366,767 766,269 3,811,086 10,026,151 Operating expenses -VIE expenses, corresponding to services provided by WOFE 81,544 (81,544 ) - Operating expenses -WOFE expenses for using VIE’s label 751,460 (751,460 ) - Operating expenses -VIE expenses, corresponding to services provided by Parent 453,500 (453,500 ) - Loss from operations (4,628,529 ) (366,767 ) (1,436,185 ) (3,253,739 ) (9,685,220 ) Other income (expenses), net (1,005 ) (584 ) (5,260 ) (5,946 ) (12,795 ) Income tax expense - Loss before noncontrolling interest (4,629,534 ) (367,351 ) (1,441,455 ) (3,259,685 ) (9,698,015 ) Less: loss attributable to noncontrolling interest (218,323 ) (218,323 ) Net loss to the Company (4,629,534 ) (367,351 ) (1,441,445 ) (3,041,362 ) - (9,479,692 )* * Include the operation of Zhangxun (see Note 13 Disposal of Subsidiary) 8 Condensed Consolidated Balance Sheets Information As of June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Cash $ 79,225 $ 1,249 $ 7,634 $ 93,154 $ 181,262 Accounts receivable 718,546 718,546 Accounts receivable - VIE 760,708 (760,708 ) - Accounts receivable - WOFE - Inventory 34,530 119,053 153,583 Inventory - VIE - - Inventory - WOFE 41,147 (41,147 ) - Other receivables-Subsidiaries 5,015 832 2,427 (8,274 ) - Other receivables - VIE 475,223 12,971,457 (13,446,680 ) - Other receivables - WOFE 6,304,226 1,412,607 (7,716,833 ) - Other receivables - Parent 5,000 (5,000 ) Other current assets 5,000 - 1,292,945 295,305 1,251 1,594,501 Total current assets 6,868,689 6,249 15,068,106 2,682,239 (21,977,391 ) 2,647,892 Property and equipment, net 17,532 30,934 48,466 Intangible assets, net 101,042 62,406 441,485 (58,932 ) 546,001 Right of use asset, net 38,300 11,045 49,345 Investment into subsidiaries 14,320,480 (14,320,480 ) - Investment into WOFE 12,450,340 (12,450,340 ) - Other non-current assets - - - - Total non-current assets 14,320,480 12,551,382 118,238 483,464 (26,829,752 ) 643,812 Total Assets $ 21,189,169 $ 12,557,631 $ 15,186,344 $ 3,165,703 (48,807,143 ) $ 3,291,704 Accounts payable $ 262,385 2,500 $ 44,758 $ 765,998 $ 1,075,641 Accounts payable - VIE - - - Accounts payable - WOFE 760,708 (760,708 ) - Short term loan 1,170,298 1,170,298 Advance from customers 463 48,776 49,239 Accrued expenses and other payables 23,254 109,121 713,827 (249,488 ) 596,714 Lease liability 41,549 11,981 53,530 Loan payable - - Other payables - Datasea 5,015 6,182,249 468,998 (6,656,262 ) - Other payables - Subsidiaries 5,000 (5,000 ) Other payables - VIE 2,536 1,412,607 (1,415,143 ) - Other payables - WOFE 845 12,971,457 (12,972,302 ) - Other current liabilities 32,000 520,501 102,059 654,560 Total current liabilities 322,639 10,896 8,311,248 17,014,102 (22,058,903 ) 3,599,982 Accumulated deficit (13,649,331 ) (1,773,745 ) (9,705,672 ) (14,479,788 ) 168,214 (39,440,322 ) Other equity 34,515,861 14,320,480 16,580,768 631,389 (26,916,454 ) 39,132,044 Total equity 20,866,530 12,546,735 6,875,096 (13,848,399 ) (26,748,240 ) (308,278 ) Total liabilities and stockholders’ equity $ 21,189,169 $ 12,557,631 $ 15,186,344 $ 3,165,703 (48,807,143 ) $ 3,291,704 9 As of June 30, 2023 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Cash $ 1,487 $ 809 $ 3,715 $ 13,717 $ 19,728 Accounts receivable 255,725 255,725 Accounts receivable - VIE 1,181,256 (1,181,256 ) - Accounts receivable - WOFE 754,242 (754,242 ) - Inventory 241,380 241,380 Inventory - VIE - Inventory - WOFE 26,562 (26,562 ) - Other receivables -Subsidiaries 111 2,394 (2,505 ) - Other receivables - VIE 8,601,966 (8,601,966 ) - Other receivables - WOFE 88,145 (88,145 ) - Other receivables - Parent 5,000 14,884 (19,884 ) - Other current assets 123,251 649,433 772,684 Total current assets 89,632 5,809 9,910,299 1,958,337 (10,674,560 ) 1,289,517 Property and equipment, net 43,044 42,886 85,930 Intangible assets, net 417,708 68,504 757,700 (58,125 ) 1,185,787 Right of use asset, net 77,508 60,348 137,856 Investment into subsidiaries 12,920,480 (12,920,480 ) - Investment into WOFE 11,050,890 (11,050,890 ) - Other non -current assets 55,358 55,358 Total non-current assets 12,920,480 11,468,598 189,056 916,292 (24,029,495 ) 1,464,931 Total Assets $ 13,010,112 $ 11,474,407 $ 10,099,355 $ 2,874,629 $ (34,704,055 ) $ 2,754,448 Accounts payable $ 288,020 $ 66,633 $ 650,406 $ 1,005,059 Accounts payable - VIE 754,242 (754,242 ) - Accounts payable - WOFE 1,181,256 (1,181,256 ) - Short term loan 594,906 594,906 Advance from customers 456 608,719 609,175 Accrued expenses and other payables 34,780 107,881 1,480,947 (213,669 ) 1,409,939 Lease liability 85,417 39,223 124,640 Other payables - Datasea 78,926 (78,926 ) - Other payables - VIE 2,536 (2,536 ) - Other payables - WOFE 122 8,596,015 (8,596,137 ) - Other current liabilities 32,000 100,165 1,030,691 1,162,856 Total current liabilities 354,800 2,658 1,193,720 14,182,163 (10,826,766 ) 6,216,881 Lease liability - noncurrent 26,449 26,449 Long term loan 1,401,521 91,215 Total non-current liabilities 1,427,970 117,664 Total liabilities 354,800 2,658 1,193,720 15,610,133 (10,826,766 ) 6,334,545 Accumulated deficit (7,069,628 ) (1,448,731 ) (6,136,980 ) (13,586,686 ) 178,767 (28,063,258 ) Other equity 19,724,940 12,920,480 15,042,615 851,182 (24,056,056 ) 24,483,161 Total equity 12,655,312 11,471,749 8,905,635 (12,735,504 ) (23,877,289 ) (3,580,097 ) Total liabilities and stockholders’ equity $ 13,010,112 $ 11,474,407 $ 10,099,355 $ 2,874,629 (34,704,055 ) $ 2,754,448 10 Condensed Consolidated Statements of Cash Flows Information Year Ended June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Net cash provided by/(used in) operating activities $ 134,284 $ (5,849 ) $ (5,076,644 ) $ (1,450,675 ) $ (6,398,884 ) Net cash provided by/(used in) operating activities (WOFE to VIE) (1,992,684 ) 1,992,684 - - Net cash provided by/(used in) investing activities - (167,957 ) (167,957 ) Net cash provided by/(used in) investing activities (Parent to subsidiaries) (1,405,015 ) 1,405,015 - Net cash provided by/(used in) investing activities (Parent to WOFE) (6,231,281 ) 6,231,281 Net cash provided by/(used in) investing activities (Subsidiaries to WOFE) (1,399,449 ) 1,399,449 - Net cash provided by/(used in) investing activities (WOFE to VIE) (2,859,142 ) 2,859,142 - Net cash provided by/(used in) investing activities (Parent to VIE) (475,223 ) 475,223 - Net cash provided by/(used in) investing activities (VIE to subsidiaries) 2,536 (2,536 ) - Net cash provided by/(used in) financing activities 8,061,286 418,608 (1,640,317 ) 6,839,577 Net cash provided by/(used in) financing activities (Parent to VIE) 483,698 (483,698 ) - Net cash provided by/(used in) financing activities (Parent to Subsidiaries) 1,405,015 (1,405,015 ) - Net cash provided by/(used in) financing activities (VIE to subsidiaries) (2,536 ) 2,536 - Net cash provided by/(used in) financing activities (parent to WOFE) 6,097,306 (6,097,306 ) - Net cash provided by/(used in) financing activities (subsidiaries to WOFE) 1,424,455 (1,424,455 ) - Net cash provided by/(used in) financing activities (WOFE to VIE) 2,859,142 (2,859,142 ) - Net increase (decrease) in cash and cash equivalents $ 77,738 $ (2,819 ) $ (1,988,041 ) $ 2,074,656 - $ 161,534 11 Year Ended June 30, 2023 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Net cash provided by/(used in) operating activities $ (41,815 ) $ (3,185 ) $ (528,833 ) $ (2,527,577 ) $ (3,101,410 ) Net cash provided by/(used in) operating activities (WOFE to VIE) (34,671 ) (34,671 ) Net cash provided by/(used in) investing activities (113,131 ) (113,131 ) Net cash provided by/(used in) investing activities (WOFE to VIE) 407,905 (407,905 ) - Net cash provided by/(used in) investing activities (Parent to VIE) 14,622 (14,622 ) - Net cash provided by/(used in) investing activities (VIE to HK entity) 2,536 (2,536 ) - Net cash provided by/(used in) financing activities 32,000 73,151 3,004,056 3,109,207 Net cash provided by/(used in) financing activities (Parent to VIE ) (14,622 ) 14,622 - Net cash provided by/(used in) financing activities (VIE to HK entity) (2,536 ) 2,536 - Net cash provided by/(used in) financing activities (WOFE to VIE) (407,905 ) 407,905 - Net increase (decrease) in cash and cash equivalents $ 9,209 $ (5,649 ) $ (86,346 ) $ (61,703 ) - $ (144,489 ) 12 cash transfers and Dividend Distribution Shuhai Beijing receives substantially all of its revenue in RMB.
Biggest changeOur historical results are not necessarily indicative of the results that may be expected in the future. 4 Condensed Consolidated Statements of Operations Information Year Ended June 30, 2025 PARENT SUBSIDIARY WOFE VIE Elimination Consolidated Revenue - third parties $ - $ - $ - $ 71,616,820 $ 71,616,820 Revenue-Parent provide service to WOFE 99,200 (99,200 ) - Revenue-Parent provide service to VIE 154,200 (154,200 ) - Revenue - WOFE’s provide service to VIE 1,350,560 (1,350,560 ) - Revenue - VIE purchase materials from WOFE 121,072 (121,072 ) - Revenue - from VIE’s label that is used by WOFE 926,286 (926,286 ) - Revenue - WOFE purchase materials from VIE 400 (400 ) - Cost of Revenue - third parties 90,763 69,082,109 69,172,872 COST - VIE purchase materials from WOFE 400 (400 ) - COST - WOFE purchase materials from VIE - 121,072 (121,072 ) - - - Gross profit 253,400 - 1,380,469 3,340,325 (2,530,246 ) 2,443,948 Operating expenses 2,391,610 130,465 2,410,541 2,666,047 7,598,663 Operating expenses-VIE cost that was purchased from WOFE 1,350,560 (1,350,560 ) - Operating expenses-WOFE cost that was purchased from VIE 926,286 (926,286 ) - Operating expenses-WOFE cost that service provided by Parent 100,641 (100,641 ) - Operating expenses-VIE cost that service provided by Parent 155,799 (155,799 ) - Loss from operations (2,138,210 ) (130,465 ) (2,056,999 ) (832,081 ) 3,040 (5,154,715 ) Other income (expenses), net 2,533 (5 ) 119,757 (47,100 ) 75,185 Income tax expense 6,596 6,596 Loss before noncontrolling interest (2,135,677 ) (130,470 ) (1,937,242 ) (885,777 ) 3,040 (5,086,126 ) Less: loss attributable to noncontrolling interest (432 ) (432 ) Net loss to the Company from continuing operation (2,135,677 ) (130,470 ) (1,937,242 ) (885,345 ) 3,040 (5,085,694 ) 5 Year Ended June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Revenue - third parties $ - $ - $ 69,541 $ 23,906,326 $ 23,975,867 Revenue - Parent provided service to WOFE 275,100 (275,100 ) - Revenue-Parent provided service to VIE 143,600 (143,600 ) - Revenue - WOFE provided service to VIE 489,386 (489,386 ) - Revenue - VIE purchased materials from WOFE 57,082 (57,082 ) Revenue - from VIE’s label that was used by WOFE 264,533 (264,533 ) - Revenue - WOFE purchased materials from VIE 57,082 (57,082 ) - Cost of Revenue - third parties 69,156 23,432,606 23,501,762 COST - VIE purchased materials from WOFE 57,082 (57,082 ) COST - WOFE purchased materials from VIE - 57,082 (57,082 ) - - Gross profit 418,700 - 489,771 738,253 (1,172,619 ) 474,105 Operating expenses 6,996,227 324,954 3,535,554 1,742,757 12,599,492 Operating expenses - VIE expenses, corresponding to services provided by WOFE 489,386 (489,386 ) - Operating expenses - WOFE expenses for using VIE’s label 264,533 (264,533 ) Operating expenses – WOFE expenses, corresponding to services provided by Parent 278,862 (278,862 ) Operating expenses - VIE expenses, corresponding to services provided by Parent 146,150 (146,150 ) - Loss from operations (6,577,527 ) (324,954 ) (3,589,178 ) (1,640,040 ) 6,312 (12,125,387 ) Other income (expenses), net (1,665 ) (61 ) 3,108 (97,300 ) (95,918 ) Income tax expense - Loss before noncontrolling interest (6,579,192 ) (325,015 ) (3,586,070 ) (1,737,340 ) 6,312 (12,221,305 ) Less: loss attributable to noncontrolling interest (10,695 ) (10,695 ) Net loss to the Company (6,579,192 ) (325,015 ) (3,586,070 ) (1,726,645 ) 6,312 (12,210,610 ) 6 Condensed Consolidated Balance Sheets Information As of June 30, 2025 PARENT SUBSIDIARY WOFE VIE Elimination Consolidated Cash $ 24,488 $ 1,598 $ 14,481 $ 580,240 $ 620,807 Accounts receivable 789,095 585,085 1,374,180 Accounts receivable - VIE - - Accounts receivable - WOFE 31,766 (31,766 ) Inventory 206,610 206,610 Inventory - VIE - Inventory - WOFE 47,738 (47,738 ) - Value-added tax prepayment 22,088 114,937 137,025 Other receivables-Subsidiaries 32,515 2,666 2,417 (37,598 ) - Other receivables - VIE 993,088 14,187,221 (15,180,309 ) - Other receivables - WOFE 10,249,731 1,423,840 (11,673,571 ) - Other receivables - Parent 5,000 (5,000 ) Other current assets 336,120 247,530 - 583,650 Total current assets 11,299,822 6,598 15,351,671 3,240,163 (26,975,982 ) 2,922,272 Property and equipment, net 6,920 18,640 25,560 Intangible assets, net 3,045,369 503,000 (52,385 ) 3,495,984 Right of use asset, net 7,720 284,345 292,065 Investment into subsidiaries 15,820,480 (15,820,480 ) - Investment into WOFE 13,949,894 (13,949,894 ) - Other non-current assets - - - - Total non-current assets 15,820,480 13,949,894 3,060,009 805,985 (29,822,759 ) 3,813,609 Total Assets $ 27,120,302 $ 13,956,492 $ 18,411,680 $ 4,046,148 (56,798,741 ) $ 6,735,881 Accounts payable $ 260,700 2,500 $ 41,066 $ 115,772 $ 420,038 Accounts payable - VIE 31,766 - (31,766 ) Accounts payable - WOFE - - Short term loan - Advance from customer 461 149,627 150,088 Accrued expense and other payable 750 1,117 804,862 (259,023 ) 547,706 Due to ralated parties 4,961 1,165 6,126 Lease liability 5,764 122,761 128,525 Loan payable - 2,374,767 2,374,767 Other payables - Datasea 32,514 10,031,174 726,742 (10,790,430 ) - Other payables - Subsidiaries 5,000 (5,000 ) Other payables - VIE 2,536 1,423,840 (1,426,376 ) - Other payables - WOFE 2,677 14,187,221 (14,189,898 ) - Other current liabilities - Total current liabilities 266,450 40,227 11,540,149 18,482,917 (26,702,493 ) 3,627,250 Lease liability - noncurrent 166,436 166,436 Long term loan - - Total non-current liabilities - - - 166,436 - 166,436 Total liabilities 266,450 40,227 11,540,149 18,649,353 (26,702,493 ) 3,793,686 Accumulated deficit (15,519,912 ) (1,904,215 ) (11,652,066 ) (15,363,739 ) (86,084 ) (44,526,016 ) Other equity 42,373,764 15,820,480 18,523,597 760,534 (30,010,164 ) 47,468,211 Total equity 26,853,852 13,916,265 6,871,531 (14,603,205 ) (30,096,248 ) 2,942,195 Total liabilities and stockholders’ equity $ 27,120,302 $ 13,956,492 $ 18,411,680 $ 4,046,148 (56,798,741 ) $ 6,735,881 7 As of June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Cash $ 79,225 $ 1,249 $ 7,634 $ 93,154 $ 181,262 Accounts receivable 718,546 718,546 Accounts receivable - VIE 760,708 (760,708 ) - Accounts receivable - WOFE - Inventory 34,530 119,053 153,583 Inventory - VIE - - Inventory - WOFE 41,147 (41,147 ) - Other receivables-Subsidiaries 5,015 832 2,427 (8,274 ) - Other receivables - VIE 475,223 12,971,457 (13,446,680 ) - Other receivables - WOFE 6,304,226 1,412,607 (7,716,833 ) - Other receivables - Parent 5,000 (5,000 ) Other current assets 5,000 - 1,292,945 295,305 1,251 1,594,501 Total current assets 6,868,689 6,249 15,068,106 2,682,239 (21,977,391 ) 2,647,892 Property and equipment, net 17,532 30,934 48,466 Intangible assets, net 101,042 62,406 441,485 (58,932 ) 546,001 Right of use asset, net 38,300 11,045 49,345 Investment into subsidiaries 14,320,480 (14,320,480 ) - Investment into WOFE 12,450,340 (12,450,340 ) - Other non-current assets - - - - Total non-current assets 14,320,480 12,551,382 118,238 483,464 (26,829,752 ) 643,812 Total Assets $ 21,189,169 $ 12,557,631 $ 15,186,344 $ 3,165,703 (48,807,143 ) $ 3,291,704 Accounts payable $ 262,385 2,500 $ 44,758 $ 765,998 $ 1,075,641 Accounts payable - VIE - - - Accounts payable - WOFE 760,708 (760,708 ) - Short term loan 1,170,298 1,170,298 Advance from customers 463 48,776 49,239 Accrued expenses and other payables 23,254 109,121 713,827 (249,488 ) 596,714 Lease liability 41,549 11,981 53,530 Loan payable - - Other payables - Datasea 5,015 6,182,249 468,998 (6,656,262 ) - Other payables - Subsidiaries 5,000 (5,000 ) Other payables - VIE 2,536 1,412,607 (1,415,143 ) - Other payables - WOFE 845 12,971,457 (12,972,302 ) - Other current liabilities 32,000 520,501 102,059 654,560 Total current liabilities 322,639 10,896 8,311,248 17,014,102 (22,058,903 ) 3,599,982 Accumulated deficit (13,649,331 ) (1,773,745 ) (9,705,672 ) (14,479,788 ) 168,214 (39,440,322 ) Other equity 34,515,861 14,320,480 16,580,768 631,389 (26,916,454 ) 39,132,044 Total equity 20,866,530 12,546,735 6,875,096 (13,848,399 ) (26,748,240 ) (308,278 ) Total liabilities and stockholders’ equity $ 21,189,169 $ 12,557,631 $ 15,186,344 $ 3,165,703 (48,807,143 ) $ 3,291,704 8 Condensed Consolidated Statements of Cash Flows Information Year Ended June 30, 2025 PARENT SUBSIDIARIES - HK entity WOFE VIE Elimination Consolidated Net cash provided by/(used in) operating activities $ (258,984 ) $ (29,428 ) $ (186,960 ) $ (1,899,308 ) $ (2,374,680 ) Net cash provided by/(used in) operating activities (WOFE to VIE) - - Net cash provided by/(used in) investing activities (3,847,448 ) (237,749 ) (4,085,197 ) Net cash provided by/(used in) investing activities (Parent to subsidiaries) (1,500,000 ) 1,500,000 - Net cash provided by/(used in) investing activities (Parent to WOFE) - Net cash provided by/(used in) investing activities (Subsidiaries to WOFE) (1,499,554 ) 1,524,032 (24,478 ) - Net cash provided by/(used in) investing activities (WOFE to VIE) (1,255,657 ) 1,255,657 - Net cash provided by/(used in) investing activities (Parent to VIE) - - Net cash provided by/(used in) financing activities 5,939,133 (102,795 ) 1,109,032 6,945,370 Net cash provided by/(used in) financing activities ( Parent to VIE ) (258,842 ) 3,875,709 259,782 (3,876,649 ) - Net cash provided by/(used in) financing activities ( Parent to subsidiaries) (27,500 ) 1,527,500 (1,500,000 ) - Net cash provided by/(used in) financing activities ( VIE to subsidiaries ) - - Net cash provided by/(used in) financing activities WOFE to parent) (3,945,505 ) 3,945,505 - Net cash provided by/(used in) financing activities (WOFE to subsidiaries ) 1,830 (1,830 ) - Net cash provided by/(used in) financing activities (WOFE to VIE) 1,255,657 (1,255,657 ) - Net increase (decrease) in cash and cash equivalents $ (51,698 ) $ (2,691 ) $ 6,848 $ 487,086 - $ 439,545 9 Year Ended June 30, 2024 PARENT SUBSIDIARIES WOFE VIE Elimination Consolidated Net cash provided by/(used in) operating activities $ 134,284 $ (5,849 ) $ (5,076,644 ) $ (1,450,675 ) $ (6,398,884 ) Net cash provided by/(used in) operating activities (WOFE to VIE) (1,992,684 ) 1,992,684 - - Net cash provided by/(used in) investing activities - (167,957 ) (167,957 ) Net cash provided by/(used in) investing activities (Parent to subsidiaries) (1,405,015 ) 1,405,015 - Net cash provided by/(used in) investing activities (Parent to WOFE) (6,231,281 ) 6,231,281 Net cash provided by/(used in) investing activities (Subsidiaries to WOFE) (1,399,449 ) 1,399,449 - Net cash provided by/(used in) investing activities (WOFE to VIE) (2,859,142 ) 2,859,142 - Net cash provided by/(used in) investing activities (Parent to VIE) (475,223 ) 475,223 - Net cash provided by/(used in) investing activities (VIE to subsidiaries) 2,536 (2,536 ) - Net cash provided by/(used in) financing activities 8,061,286 418,608 (1,640,317 ) 6,839,577 Net cash provided by/(used in) financing activities (Parent to VIE) 483,698 (483,698 ) - Net cash provided by/(used in) financing activities (Parent to Subsidiaries) 1,405,015 (1,405,015 ) - Net cash provided by/(used in) financing activities (VIE to subsidiaries) (2,536 ) 2,536 - Net cash provided by/(used in) financing activities (parent to WOFE) 6,097,306 (6,097,306 ) - Net cash provided by/(used in) financing activities (subsidiaries to WOFE) 1,424,455 (1,424,455 ) - Net cash provided by/(used in) financing activities (WOFE to VIE) 2,859,142 (2,859,142 ) - Net increase (decrease) in cash and cash equivalents $ 77,738 $ (2,819 ) $ (1,988,041 ) $ 2,074,656 - $ 161,534 10 cash transfers and Dividend Distribution The revenue of Shuhai Beijing (the VIE entity) is primarily denominated in RMB, and its fund transfers must comply with China’s foreign exchange management regulations.
As a pioneer in China’s 5G multimodal digital field, Datasea deeply integrates the high-speed and low-latency characteristics of 5G networks with AI and big data processing technologies to create a comprehensive AI multimodal digital platform that spans multiple industries. This platform integrates various data forms, such as text, audio, and video, enabling efficient information generation, precise transmission, and automation.
As a pioneer in China’s AI multimodal digital field, Datasea deeply integrates the high-speed and low-latency characteristics of 5G networks with AI and big data processing technologies to create a comprehensive AI multimodal digital platform that spans multiple industries. This platform integrates various data forms, such as text, audio, and video, enabling efficient information generation, precise transmission, and automation.
Datasea utilizes advanced technologies in this domain, combining basic acoustic theories with AI to create a robust technology system centered around the effects of non-audible mechanical waves. This includes leveraging ultrasonic technology for sterilization, which effectively combats viruses and prevents infections. The technology exploits the mechanical, thermal, and cavitation effects of ultrasound.
Datasea utilizes advanced technologies in this domain, combining basic acoustic theories with AI to create a robust technology system centered around the effects of non-audible mechanical waves. This includes leveraging ultrasonic technology for sterilization, which effectively combats viruses and prevents infections. Thid technology exploits the mechanical, thermal, and cavitation effects of ultrasound.
Our company’s acoustic technologies and products are widely applied across various industries and fields, including acoustic industrial applications, acoustic agriculture, acoustic medicine, acoustic health, and acoustic IoT technologies. Acoustic High-Tech is a new field that integrates fundamental acoustic theory with artificial intelligence to collect and process acoustic data and address various challenges.
Our Company’s acoustic technologies and products are widely applied across various industries and fields, including acoustic industrial applications, acoustic agriculture, acoustic medicine, acoustic health, and acoustic IoT technologies. 12 Acoustic High-Tech is a new field that integrates fundamental acoustic theory with artificial intelligence to collect and process acoustic data and address various challenges.
Granted Patents owned by ShenzhenJingwei Technology 9 CN107036218B A novel ultrasonic atomizer device Granted 10 CN218853183U The handle used for sterilizing the device Granted 11 CN218247901U Ultraviolet ultrasonic plasma disinfection equipment Granted Patents owned by Acoustic Effect Technology 12 CN307831947S Acoustic effect disinfection instrument type I (universal) Granted 37 Patents under Substantive Examination: No.
Granted Patents owned by ShenzhenJingwei Technology 9 CN107036218B A novel ultrasonic atomizer device Granted 10 CN218853183U The handle used for sterilizing the device Granted 11 CN218247901U Ultraviolet ultrasonic plasma disinfection equipment Granted Patents owned by Acoustic Effect Technology 12 CN307831947S Acoustic effect disinfection instrument type I (universal) Granted 32 Patents under Substantive Examination: No.
Stockholders’ Voting Rights Entrustment Agreement – Tianjin Information has entered into a stockholders’ voting rights entrustment agreement (the “Entrustment Agreement”) under which Zhixin Liu and Fu Liu (collectively the “Shuhai Beijing Stockholders”) have vested their voting power in Shuhai Beijing to Tianjin Information or its designee(s).
Shareholder Voting Rights Proxy Agreement Tianjin Information has entered into a stockholders’ voting rights entrustment agreement (the “Entrustment Agreement”) under which Zhixin Liu and Fu Liu (collectively the “Shuhai Beijing Stockholders”) have vested their voting power in Shuhai Beijing to Tianjin Information or its designee(s).
Summary Consolidated Financial Data The following historical statements of operations and statements of cash flows for the fiscal years ended June 30, 2023 and June 30, 2024, and balance sheet data as of June 30, 2023 and June 30, 2024, which have been derived from our audited financial statements for those periods.
Summary Consolidated Financial Data The following historical statements of operations and statements of cash flows for the fiscal years ended June 30, 2024 and June 30, 2025, and balance sheet data as of June 30, 2024 and June 30, 2025, which have been derived from our audited financial statements for those periods.
Our Business analysis Acoustics Business Industry overview Definition of Acoustics.Acoustics is the science of studying sound, encompassing the generation, propagation, reception, conversion, and various effects of sound waves. It covers all forms of linear and nonlinear mechanical wave phenomena, from infrasound to ultrasound, and from microscopic to macroscopic scales.
Acoustics Business Industry overview Acoustics is the science of studying sound, encompassing the generation, propagation, reception, conversion, and various effects of sound waves. It covers all forms of linear and nonlinear mechanical wave phenomena, from infrasound to ultrasound, and from microscopic to macroscopic scales.
As of June 2024, the Company has made the following achievements in patent applications from the State Intellectual Property Bureau: Publication and Granted Patents: No.
As of June 2025, the Company has made the following achievements in patent applications from the State Intellectual Property Bureau: Publication and Granted Patents: No.
Datasea’s common stock currently listed on the Nasdaq Capital Market are shares of our Nevada holding company that maintains service agreements with the associated operating companies which enable us to consolidate the financial results of the VIE and its subsidiaries with Datasea’s corporate group under U.S. GAAP, making Datasea the primary beneficiary of the VIE for accounting purposes.
Our common stock listed on the Nasdaq Capital Market is the common stock of our Nevada holding company that maintains service agreements with the associated operating companies which enable us to consolidate the financial results of the VIE and its subsidiaries with our corporate group under U.S. GAAP, making Datasea the primary beneficiary of the VIE for accounting purposes.
Certification Certificate No. 1 Shuhai XIN Platform internet activity audit security management system V1.0 Ruan Zhu Deng Zi No.1054520 2 Shuhai XIN Platform WIFI device feature collection management system V1.0 Ruan Zhu Deng Zi No.1111383 3 Shuhai XIN Platform micro mall system V1.0 Ruan Zhu Deng Zi No.1111535 4 Shuhai XIN Platform SMS platform system V1.0 Ruan Zhu Deng Zi No.1111683 5 Shuhai XIN platform 3G website content management system V1.0 Ruan Zhu Deng Zi No.1111690 6 Shuhai media advertising system V1.0 Ruan Zhu Deng Zi No.1111694 7 Shuhai XIN platform micro marketing system V1.0 Ruan Zhu Deng Zi No.1111700 8 “Shuhai Safe Campus” mobile end - security management system V2.0 Ruan Zhu Deng Zi No.1575317 9 “Shuhai Safe Campus” security management system V2.0 Ruan Zhu Deng Zi No.1575313 10 “Shuhai XIN Platform” front-end equipment control system for smart elevator detection V2.0 Ruan Zhu Deng Zi No.1574419 11 “Shuhai XIN Platform” smart elevator inspection & pre-alarm management platformV2.0 Ruan Zhu Deng Zi No.1575648 12 “Shuhai XIN Platform” smart elevator real-time monitoring and alarm management platform V2.0 Ruan Zhu Deng Zi No.1575758 13 “Shuhai XIN Platform” smart elevator screen equipment monitoring system V2.0 Ruan Zhu Deng Zi No.1575665 14 “Shuhai XIN Platform” smart advertisement launching system V2.0 Ruan Zhu Deng Zi No.1575670 15 Shuhai Information smart safe campus management system V1.0 Ruan Zhu Deng Zi No.2888248 16 Shuhai Information XIN Platform security management system (Android Version) V2.21 Ruan Zhu Deng Zi No.2918496 17 Shuhai information XIN platform security management system (IOS version) V2.21 Ruan Zhu Deng Zi No.2918467 18 Shuhai Information big data smart decision-making platform for governmental affairs V1.0 Ruan Zhu Deng Zi No.2962930 19 Shuhai Information campus smart brain information management platform V1.0 Ruan Zhu Deng Zi No.2961899 20 Shuhai Information university big data innovation laboratory platform V1.0 Ruan Zhu Deng Zi No.2962919 21 Shuhai Information Food Traceability Management System V1.0 Ruan Zhu Deng Zi No.10176578 22 Shuhai information comprehensive canteen management application system V1.0 Ruan Zhu Deng Zi No.10176482 23 Shuhai information integrated community intelligent management user platform V1.0 Ruan Zhu Deng Zi No.10176481 24 Shuhai Information campus cloud security management system V1.0 Ruan Zhu Deng Zi No.10176483 25 Shuhai information physical network edge transmission gateway platform V1.0 Ruan Zhu Deng Zi No.10176483 26 Shuhai information aggregation message marketing cloud platform V1.0 Ruan Zhu Deng Zi No.10176528 27 Shuhai Communication 5G message application management system V1.0 Ruan Zhu Deng Zi No.10176582 28 Shuhai Information integrated community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.10176530 29 Shuhai Information online shopping retail service platform V1.0 Ruan Zhu Deng Zi No.10176529 30 Shuhai information integrated community intelligent management platform V1.0 Ruan Zhu Deng Zi No.10176484 31 The three-dimensional linkage system for Epidemic Prevention and control in Shuhai Information Community V1.0 Softcopy Registration No.7128687 32 Shuhai information scanning code aggregation payment system Softcopy Registration No.7299094 33 Shuhai information social group purchase system Softcopy Registration No.7296663 34 Shuhai information face recognition payment system V1.0 Softcopy Registration No.7298094 35 Shuhai information online shopping mall System Softcopy Registration No.7300125 36 Big data accurate analysis of sales promotion system Softcopy Registration No.11933115 37 Multimodal customer relationship management system Softcopy Registration No.11938599 38 5G message data exchange center system Softcopy Registration No.11893684 39 Enterprise digital employee management system Softcopy Registration No.11548880 39 Software Copyright owned by Xunrui Technology No.
Certification Certificate No. 1 Shuhai XIN Platform internet activity audit security management system V1.0 Ruan Zhu Deng Zi No.1054520 2 Shuhai XIN Platform WIFI device feature collection management system V1.0 Ruan Zhu Deng Zi No.1111383 3 Shuhai XIN Platform micro mall system V1.0 Ruan Zhu Deng Zi No.1111535 4 Shuhai XIN Platform SMS platform system V1.0 Ruan Zhu Deng Zi No.1111683 5 Shuhai XIN platform 3G website content management system V1.0 Ruan Zhu Deng Zi No.1111690 6 Shuhai media advertising system V1.0 Ruan Zhu Deng Zi No.1111694 7 Shuhai XIN platform micro marketing system V1.0 Ruan Zhu Deng Zi No.1111700 8 “Shuhai Safe Campus” mobile end - security management system V2.0 Ruan Zhu Deng Zi No.1575317 9 “Shuhai Safe Campus” security management system V2.0 Ruan Zhu Deng Zi No.1575313 10 “Shuhai XIN Platform” front-end equipment control system for smart elevator detection V2.0 Ruan Zhu Deng Zi No.1574419 11 “Shuhai XIN Platform” smart elevator inspection & pre-alarm management platformV2.0 Ruan Zhu Deng Zi No.1575648 12 “Shuhai XIN Platform” smart elevator real-time monitoring and alarm management platform V2.0 Ruan Zhu Deng Zi No.1575758 33 13 “Shuhai XIN Platform” smart elevator screen equipment monitoring system V2.0 Ruan Zhu Deng Zi No.1575665 14 “Shuhai XIN Platform” smart advertisement launching system V2.0 Ruan Zhu Deng Zi No.1575670 15 Shuhai Information smart safe campus management system V1.0 Ruan Zhu Deng Zi No.2888248 16 Shuhai Information XIN Platform security management system (Android Version) V2.21 Ruan Zhu Deng Zi No.2918496 17 Shuhai information XIN platform security management system (IOS version) V2.21 Ruan Zhu Deng Zi No.2918467 18 Shuhai Information big data smart decision-making platform for governmental affairs V1.0 Ruan Zhu Deng Zi No.2962930 19 Shuhai Information campus smart brain information management platform V1.0 Ruan Zhu Deng Zi No.2961899 20 Shuhai Information university big data innovation laboratory platform V1.0 Ruan Zhu Deng Zi No.2962919 21 Shuhai Information Food Traceability Management System V1.0 Ruan Zhu Deng Zi No.10176578 22 Shuhai information comprehensive canteen management application system V1.0 Ruan Zhu Deng Zi No.10176482 23 Shuhai information integrated community intelligent management user platform V1.0 Ruan Zhu Deng Zi No.10176481 24 Shuhai Information campus cloud security management system V1.0 Ruan Zhu Deng Zi No.10176483 25 Shuhai information physical network edge transmission gateway platform V1.0 Ruan Zhu Deng Zi No.10176483 26 Shuhai information aggregation message marketing cloud platform V1.0 Ruan Zhu Deng Zi No.10176528 27 Shuhai Communication 5G message application management system V1.0 Ruan Zhu Deng Zi No.10176582 28 Shuhai Information integrated community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.10176530 29 Shuhai Information online shopping retail service platform V1.0 Ruan Zhu Deng Zi No.10176529 30 Shuhai information integrated community intelligent management platform V1.0 Ruan Zhu Deng Zi No.10176484 31 The three-dimensional linkage system for Epidemic Prevention and control in Shuhai Information Community V1.0 Softcopy Registration No.7128687 32 Shuhai information scanning code aggregation payment system Softcopy Registration No.7299094 33 Shuhai information social group purchase system Softcopy Registration No.7296663 34 Shuhai information face recognition payment system V1.0 Softcopy Registration No.7298094 35 Shuhai information online shopping mall System Softcopy Registration No.7300125 36 Big data accurate analysis of sales promotion system Softcopy Registration No.11933115 37 Multimodal customer relationship management system Softcopy Registration No.11938599 38 5G message data exchange center system Softcopy Registration No.11893684 39 Enterprise digital employee management system Softcopy Registration No.11548880 40 Shuhai Information Beauty Industry Multimodal Assistant User End Softcopy Registration No.13940802 41 Multimodal data management System for Customer Relations in the park Softcopy Registration No.13935684 42 Digital Marketing Cloud Document Comprehensive Management System Softcopy Registration No.13934629 43 5G intelligent multimodal ERP management system Softcopy Registration No.13941972 44 Acoustic intelligent life terminal equipment management system Softcopy Registration No.14412403 45 Interactive intelligent service management system for stores Softcopy Registration No.14280647 34 Software Copyright owned by Xunrui Technology No.
Please refer to a condensed consolidating schedule that disaggregates the operations and depicts the financial position, cash flows, and results of operations as of the dates and for the periods stated therein at pages F-1 to F-34 of this Annual Report.
Please refer to a condensed consolidating schedule that disaggregates the operations and depicts the financial position, cash flows, and results of operations as of the dates and for the periods stated therein at pages F-1 to F-34 of this Annual Report. Operation and Intellectual Property Service Agreement .
We do not have the intentions to distribute earnings or settle amounts owed under the VIE Agreements in the near future nor do we anticipate that any cash dividends will be paid or Shuhai Beijing’s earnings will be distributed and transferred to the holding company in the foreseeable future.
We do not have the intentions to distribute earnings or settle amounts owed under the VIE Agreements in the near future nor do we anticipate that any cash dividends will be paid or Shuhai Beijing’s earnings will be distributed and transferred to the holding company in the foreseeable future. See “ Summary Consolidated Financial Data ”.
Datasea’s 5G products and solutions are widely applied in rural revitalization, healthcare, and logistics, providing digital and intelligent services to over 48.42 million enterprises and households in China (with more than 99% being small and medium-sized enterprises), driving industrial upgrades and innovative development.
Datasea’s AI multimodal digital products and solutions are widely applied in rural revitalization, healthcare, and logistics, and have capability to provide digital and intelligent services to over 48.42 million enterprises and households in China (with more than 99% being small and medium-sized enterprises), driving industrial upgrades and innovative development.
These strategic endeavors underscore Datasea’s commitment to innovation and its ambition to solidify its position as a leading player at the intersection of acoustics and artificial intelligence. R&D Investment As for the fiscal year ended June 30, 2023 and 2024, we spent $569,635 and $359,342 on research and development, respectively.
These strategic endeavors underscore Datasea’s commitment to innovation and its ambition to solidify its position as a leading player at the intersection of acoustics and artificial intelligence. R&D Investment During the fiscal year ended June 30, 2024 and 2025, we spent $359,342&$914,996 on research and development, respectively.
(“Shuhai Beijing” or the “VIE”) is the VIE of our corporate group that is under contractual control by Datasea.
(“Shuhai Beijing” or the “VIE”) is the VIE entity of our corporate group, under the contractual control of Datasea.
Certification Certificate No. 40 Xunrui smart security integrated management platform v1.0 Ruan Zhu Deng Zi No.5201855 41 Xunrui big data visual analytics platform v1.0 Ruan Zhu Deng Zi No.5201772 42 Xunrui visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201824 43 Xunrui non-visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201861 44 Xunrui epidemic prevention and control linkage early warning system v1.0 Ruan Zhu Deng Zi No.5201704 45 Xunrui smart campus security management system v1.0 Ruan Zhu Deng Zi No.5201776 46 Xunrui smart scenic area security management system v1.0 Ruan Zhu Deng Zi No.5201574 47 Xunrui smart community security management system v1.0 Ruan Zhu Deng Zi No.5201869 48 Xunrui smart one-key alarm management system v1.0 Ruan Zhu Deng Zi No.5201784 49 Xunrui smart guest management system v1.0 Ruan Zhu Deng Zi No.5201780 50 Xunrui O2O community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.9940999 51 Xunrui Smart Campus Security cloud platform system V1.0 Ruan Zhu Deng Zi No.9941054 52 Xunrui Wisdom canteen arrangement system V1.0 Ruan Zhu Deng Zi No.9941000 53 Xunrui aggregation message cloud platform V1.0 Ruan Zhu Deng Zi No.9941047 54 Xunrui B2B2C online mall system V1.0 Ruan Zhu Deng Zi No.9941055 55 Xunrui Wisdom Canteen Food traceability system V1.0 Ruan Zhu Deng Zi No.9995289 56 Xunrui 5G message cloud platform V1.0 Ruan Zhu Deng Zi No.9995307 57 Xunruirong media information marketing platform RuanZhuDeng Zi No.10318231 58 Xunrui comprehensive online Office OA System RuanZhuDeng Zi No.10318229 59 Xunrui integrated security cloud platform RuanZhuDeng Zi No.10318227 60 Xunrui Smart Apartment management system RuanZhuDeng Zi No.10318271 61 Xunrui Aggregate payment and settlement system RuanZhuDeng Zi No.10318221 62 Xunrui AI intelligent algorithm analysis platform RuanZhuDeng Zi No.10318230 63 Xunrui intelligent acoustic recognition system RuanZhuDeng Zi No.10318269 64 Xunrui Intelligent Park management system RuanZhuDeng Zi No.10318270 65 Xunrui Wisdom Catering System RuanZhuDeng Zi No.10318268 66 Xunrui satellite remote sensing - Agricultural Management System RuanZhuDeng Zi No.10318228 67 Xungrui iot terminal service gateway platform V1.0 RuanZhu Deng Zi No10357761 68 Xungrui intelligent community integrated management platform V2.0 RuanZhu Deng Zi No10357535 69 Xungrui smart community integrated management client platform V1.0 RuanZhu Deng Zi No10312678 70 “CoAI CPaaS” interactive artificial intelligence precision reach analysis platform v1.0 RuanZhu Deng Zi No11659754 71 Cloud Customer Resource Management system v1.0 RuanZhu Deng Zi No11652683 72 Big data attribute label analysis marketing push system RuanZhu Deng Zi No11877356 73 Micro, small and medium-sized enterprises 5G messaging application platform v1.0 RuanZhu Deng Zi No12233860 74 Xungrui iot cloud platform V1.0 RuanZhu Deng Zi No12450190 75 Xungrui smart canteen security system V1.0 Ruan Zhu Deng Zi No12576381 40 Software Copyrights owned by Tianjin Information No.
Certification Certificate No. 46 Xunrui smart security integrated management platform v1.0 Ruan Zhu Deng Zi No.5201855 47 Xunrui big data visual analytics platform v1.0 Ruan Zhu Deng Zi No.5201772 48 Xunrui visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201824 49 Xunrui non-visual recognition algorithm platform v1.0 Ruan Zhu Deng Zi No.5201861 50 Xunrui epidemic prevention and control linkage early warning system v1.0 Ruan Zhu Deng Zi No.5201704 51 Xunrui smart campus security management system v1.0 Ruan Zhu Deng Zi No.5201776 52 Xunrui smart scenic area security management system v1.0 Ruan Zhu Deng Zi No.5201574 53 Xunrui smart community security management system v1.0 Ruan Zhu Deng Zi No.5201869 54 Xunrui smart one-key alarm management system v1.0 Ruan Zhu Deng Zi No.5201784 55 Xunrui smart guest management system v1.0 Ruan Zhu Deng Zi No.5201780 56 Xunrui O2O community group Shopping Mall system V1.0 Ruan Zhu Deng Zi No.9940999 57 Xunrui Smart Campus Security cloud platform system V1.0 Ruan Zhu Deng Zi No.9941054 58 Xunrui Wisdom canteen arrangement system V1.0 Ruan Zhu Deng Zi No.9941000 59 Xunrui aggregation message cloud platform V1.0 Ruan Zhu Deng Zi No.9941047 60 Xunrui B2B2C online mall system V1.0 Ruan Zhu Deng Zi No.9941055 61 Xunrui Wisdom Canteen Food traceability system V1.0 Ruan Zhu Deng Zi No.9995289 62 Xunrui 5G message cloud platform V1.0 Ruan Zhu Deng Zi No.9995307 63 Xunruirong media information marketing platform RuanZhuDeng Zi No.10318231 64 Xunrui comprehensive online Office OA System RuanZhuDeng Zi No.10318229 65 Xunrui integrated security cloud platform RuanZhuDeng Zi No.10318227 66 Xunrui Smart Apartment management system RuanZhuDeng Zi No.10318271 67 Xunrui Aggregate payment and settlement system RuanZhuDeng Zi No.10318221 68 Xunrui AI intelligent algorithm analysis platform RuanZhuDeng Zi No.10318230 69 Xunrui intelligent acoustic recognition system RuanZhuDeng Zi No.10318269 70 Xunrui Intelligent Park management system RuanZhuDeng Zi No.10318270 71 Xunrui Wisdom Catering System RuanZhuDeng Zi No.10318268 72 Xunrui satellite remote sensing - Agricultural Management System RuanZhuDeng Zi No.10318228 73 Xungrui iot terminal service gateway platform V1.0 RuanZhu Deng Zi No10357761 74 Xungrui intelligent community integrated management platform V2.0 RuanZhu Deng Zi No10357535 75 Xungrui smart community integrated management client platform V1.0 RuanZhu Deng Zi No10312678 76 “CoAI CPaaS” interactive artificial intelligence precision reach analysis platform v1.0 RuanZhu Deng Zi No11659754 77 Cloud Customer Resource Management system v1.0 RuanZhu Deng Zi No11652683 78 Big data attribute label analysis marketing push system RuanZhu Deng Zi No11877356 79 Micro, small and medium-sized enterprises 5G messaging application platform v1.0 RuanZhu Deng Zi No12233860 80 Xungrui iot cloud platform V1.0 RuanZhu Deng Zi No12450190 81 Xungrui smart canteen security system V1.0 Ruan Zhu Deng ZiNo12576381 82 5G Messaging Integrated Order Management System Ruan Zhu Deng ZiNo14292596 83 Beauty industry store operation management system Ruan Zhu Deng ZiNo14301728 84 Smart agriculture Plant growth analysis system Ruan Zhu Deng ZiNo14292600 85 Intelligent Internet of Things Health and Wellness Management System Ruan Zhu Deng ZiNo13927009 86 Intelligent Emergency Comprehensive Management System Ruan Zhu Deng ZiNo14292610 35 Software Copyrights owned by Tianjin Information No.
Certification Certificate No. 76 Campus danger alarm system V1.0 Ruan Zhu Deng Zi No.7177594 77 Community prevention and control personnel information registration system V1.0 Ruan Zhu Deng Zi n No.7140470 78 Intelligent Community Management System V1.0 Ruan Zhu Deng Zi No.7125871 79 Community prevention and control health information Management system V1.0 Ruan Zhu Deng Zi No.7131600 80 Campus epidemic prevention and control personnel access management system based on face recognition Ruan Zhu Deng Zi No.7263518 81 Campus epidemic prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7242759 82 Intelligent community intelligent monitoring and management system V1.0 Ruan Zhu Deng Zi No.7558127 83 Campus information Management System V1.0 Ruan Zhu Deng Zi No.7561345 84 Intelligent community access control management system Ruan Zhu Deng Zi No.7568924 85 Community prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7565701 86 Campus monitoring system V1.0 Ruan Zhu Deng Zi No.7570612 87 Community prevention and control personnel information Management system V1.0 Ruan Zhu Deng Zi No.7570807 88 Campus Intelligent acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580724 89 Intelligent acoustic Early warning System V2.0 for medical and nursing environment Ruan Zhu Deng Zi No. 8580553 90 Intelligent acoustic Early warning system V2.0 for public places Ruan Zhu Deng Zi No. 8580552 91 Swimming pool intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580686 92 Home Intelligent Acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580685 93 Hotel Intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580725 94 5G message data acquisition System 1.0 Ruan Zhu Deng Zi No.11109956 95 5G message aggregation cloud platform Ruan Zhu Deng Zi No.11109703 96 Cockpit management platform Ruan Zhu Deng Zi No.11109957 97 Data Asset Management Platform 1.0 Ruan Zhu Deng Zi No.11109896 98 Digital Employee Management System 1.0 Ruan Zhu Deng Zi No.11109704 99 5G aggregate user order data tracking system Ruan Zhu Deng Zi No12967877 100 5G communication channel payment gateway system Ruan Zhu Deng Zi No12971369 101 5G messaging e-commerce marketing network platform 1.0 Ruan Zhu Deng Zi No12971576 102 Multi-modal payment integrated management system Ruan Zhu Deng Zi No12970902 103 Integrated satellite remote sensing intelligent observation system Ruan Zhu Deng Zi No12971398 104 Iot edge computing gateway platform Ruan Zhu Deng Zi No12967198 105 Iot interoperable data service platform Ruan Zhu Deng Zi No12970896 106 Customer information security protection management platform Ruan Zhu Deng Zi No13073979 41 Software Copyrights owned by Acoustic Effect Technology 107 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.9854777 108 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No. 9877299 109 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.9864534 Soft Copyrights owned by Shuhai Jingwei 110 Square intelligent acoustic early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322358 111 Community medical center intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322366 112 Stadium intelligent acoustic early warning and identification system 1.0 Ruan Zhu Deng Zi No.10319630 113 Home intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322359 114 College intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322365 115 Apartment intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10319699 116 Shuhai Jingwei 5G message aggregation cloud platform Ruan Zhu Deng Zi No.10688735 117 Shuhai Jingwei Data collection system V1.0 Ruan Zhu Deng Zi No.10688734 118 Shuhai Jingwei digital team management system Ruan Zhu Deng Zi No.10688737 119 Shuhai Jingwei messaging platform 1.0 Ruan Zhu Deng Zi No.10688736 120 Shuhai Jingwei message marketing cloud platform 1.0 Ruan Zhu Deng Zi No.10688734 121 Shuhai Jingwei data asset management platform V1.0 Ruan Zhu Deng Zi No.11022539 122 Shuhai Jingwei SOP management system Ruan Zhu Deng Zi No.10688732 123 Shuhai Jingwei smart community integrated management client platform Ruan Zhu Deng Zi No.10688733 124 Shuhai Jingwei Intelligent Park security cloud platform Ruan Zhu Deng Zi No.10688731 125 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.10688740 126 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No.10688739 127 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.10688738 128 Iot terminal edge service gateway platform Ruan Zhu Deng Zi No.12821324 129 5G message comprehensive traceability analysis data display system Ruan Zhu Deng Zi No.12782739 130 AI semantic copy generation system Ruan Zhu Deng Zi No.12664881 131 Multi-channel integrated payment management system Ruan Zhu Deng Zi No.12779467 132 Voice interaction inspection system based on customer robot Ruan Zhu Deng Zi No.12777940 133 Interactive precision reach analysis platform Ruan Zhu Deng Zi No.12817101 134 Customer information security management system Ruan Zhu Deng Zi No.12782733 135 Customer marketing management system Ruan Zhu Deng Zi No.12780563 136 Digital Sea Jingwei 5G message fee aggregation channel business platform Ruan Zhu Deng Zi No.12779116 137 Satellite remote sensing integrated intelligent observation system Ruan Zhu Deng Zi No.12778719 138 Internet of Things interlink service system Ruan Zhu Deng Zi No.12785025 139 Integrated marketing e-commerce platform Ruan Zhu Deng Zi No.12782647 42 Intellectual Property Planning Datasea is dedicated to cultivating a core product portfolio within the realm of acoustic High-Tech, with a primary focus on the integration of acoustics and artificial intelligence.
Certification Certificate No. 87 Campus danger alarm system V1.0 Ruan Zhu Deng Zi No.7177594 88 Community prevention and control personnel information registration system V1.0 Ruan Zhu Deng Zi n No.7140470 89 Intelligent Community Management System V1.0 Ruan Zhu Deng Zi No.7125871 90 Community prevention and control health information Management system V1.0 Ruan Zhu Deng Zi No.7131600 91 Campus epidemic prevention and control personnel access management system based on face recognition Ruan Zhu Deng Zi No.7263518 92 Campus epidemic prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7242759 93 Intelligent community intelligent monitoring and management system V1.0 Ruan Zhu Deng Zi No.7558127 94 Campus information Management System V1.0 Ruan Zhu Deng Zi No.7561345 95 Intelligent community access control management system Ruan Zhu Deng Zi No.7568924 96 Community prevention and control temperature measurement data management system Ruan Zhu Deng Zi No.7565701 97 Campus monitoring system V1.0 Ruan Zhu Deng Zi No.7570612 98 Community prevention and control personnel information Management system V1.0 Ruan Zhu Deng Zi No.7570807 99 Campus Intelligent acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580724 100 Intelligent acoustic Early warning System V2.0 for medical and nursing environment Ruan Zhu Deng Zi No. 8580553 101 Intelligent acoustic Early warning system V2.0 for public places Ruan Zhu Deng Zi No. 8580552 102 Swimming pool intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580686 103 Home Intelligent Acoustic Warning System V2.0 Ruan Zhu Deng Zi No. 8580685 104 Hotel Intelligent acoustic warning system V2.0 Ruan Zhu Deng Zi No. 8580725 105 5G message data acquisition System 1.0 Ruan Zhu Deng Zi No.11109956 106 5G message aggregation cloud platform Ruan Zhu Deng Zi No.11109703 107 Cockpit management platform Ruan Zhu Deng Zi No.11109957 108 Data Asset Management Platform 1.0 Ruan Zhu Deng Zi No.11109896 109 Digital Employee Management System 1.0 Ruan Zhu Deng Zi No.11109704 110 5G aggregate user order data tracking system Ruan Zhu Deng Zi No12967877 111 5G communication channel payment gateway system Ruan Zhu Deng Zi No12971369 112 5G messaging e-commerce marketing network platform 1.0 Ruan Zhu Deng Zi No12971576 113 Multi-modal payment integrated management system Ruan Zhu Deng Zi No12970902 114 Integrated satellite remote sensing intelligent observation system Ruan Zhu Deng Zi No12971398 115 Iot edge computing gateway platform Ruan Zhu Deng Zi No12967198 116 Iot interoperable data service platform Ruan Zhu Deng Zi No12970896 117 Customer information security protection management platform Ruan Zhu Deng Zi No13073979 118 Multi-customer interactive marketing management system Ruan Zhu Deng Zi No13266249 119 Interactive comprehensive Service procurement management system Ruan Zhu Deng Zi No13935831 120 Decompression acoustic brainwave software Ruan Zhu Deng Zi No114129289 121 Acoustic equipment performance testing management platform Ruan Zhu Deng Zi No14129243 122 Acoustic sleep aid environmental noise control management system Ruan Zhu Deng Zi No14129261 123 Intelligent acoustic health sleep aid management software Ruan Zhu Deng Zi No14129276 124 An automated voice interaction detection system Ruan Zhu Deng Zi No13559047 125 Acoustic sleep Aid Equipment Performance Monitoring and Management System Ruan Zhu Deng Zi No15478625 126 Noise online detection data analysis system Ruan Zhu Deng Zi No15478640 36 Software Copyrights owned by Acoustic Effect Technology 127 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.9854777 128 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No. 9877299 129 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.9864534 Soft Copyrights owned by Shuhai Jingwei 130 Square intelligent acoustic early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322358 131 Community medical center intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322366 132 Stadium intelligent acoustic early warning and identification system 1.0 Ruan Zhu Deng Zi No.10319630 133 Home intelligent acoustic early warning recognition system 1.0 Ruan Zhu Deng Zi No.10322359 134 College intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10322365 135 Apartment intelligent acoustic Early warning and recognition system 1.0 Ruan Zhu Deng Zi No.10319699 136 Shuhai Jingwei 5G message aggregation cloud platform Ruan Zhu Deng Zi No.10688735 137 Shuhai Jingwei Data collection system V1.0 Ruan Zhu Deng Zi No.10688734 138 Shuhai Jingwei digital team management system Ruan Zhu Deng Zi No.10688737 139 Shuhai Jingwei messaging platform 1.0 Ruan Zhu Deng Zi No.10688736 140 Shuhai Jingwei message marketing cloud platform 1.0 Ruan Zhu Deng Zi No.10688734 141 Shuhai Jingwei data asset management platform V1.0 Ruan Zhu Deng Zi No.11022539 142 Shuhai Jingwei SOP management system Ruan Zhu Deng Zi No.10688732 143 Shuhai Jingwei smart community integrated management client platform Ruan Zhu Deng Zi No.10688733 144 Shuhai Jingwei Intelligent Park security cloud platform Ruan Zhu Deng Zi No.10688731 145 High frequency acoustic effect air coupling algorithm software V1.0 Ruan Zhu Deng Zi No.10688740 146 High frequency acoustic effect air coupling and collaborative ultraviolet control algorithm software V1.0 Ruan Zhu Deng Zi No.10688739 147 Variable frequency acoustic effect coronavirus feature elimination algorithm software V1.0 Ruan Zhu Deng Zi No.10688738 148 Iot terminal edge service gateway platform Ruan Zhu Deng Zi No.12821324 149 5G message comprehensive traceability analysis data display system Ruan Zhu Deng Zi No.12782739 150 AI semantic copy generation system Ruan Zhu Deng Zi No.12664881 151 Multi-channel integrated payment management system Ruan Zhu Deng Zi No.12779467 152 Voice interaction inspection system based on customer robot Ruan Zhu Deng Zi No.12777940 153 Interactive precision reach analysis platform Ruan Zhu Deng Zi No.12817101 154 Customer information security management system Ruan Zhu Deng Zi No.12782733 155 Customer marketing management system Ruan Zhu Deng Zi No.12780563 156 Digital Sea Jingwei 5G message fee aggregation channel business platform Ruan Zhu Deng Zi No.12779116 157 Satellite remote sensing integrated intelligent observation system Ruan Zhu Deng Zi No.12778719 158 Internet of Things interlink service system Ruan Zhu Deng Zi No.12785025 159 Integrated marketing e-commerce platform Ruan Zhu Deng Zi No.12782647 160 Iot terminal edge service-oriented gateway platform Ruan Zhu Deng Zi No.12821324 GuozhongTimes 161 Enterprise digital procurement service platform Ruan Zhu Deng Zi No.14422388 162 Online transaction centralized procurement digital system Ruan Zhu Deng Zi No.14246469 163 Online transaction intelligent service robot management platform Ruan Zhu Deng Zi No.14247983 37 Intellectual Property Planning Datasea is dedicated to cultivating a core product portfolio within the realm of acoustic High-Tech, with a primary focus on the integration of acoustics and artificial intelligence.
One significant application of Schumann resonance is in treating insomnia, helping people enhance their sleep quality. The scope of Schumann resonance can also be extended to include Schumann Hertz audio and Schumann Hertz mechanical vibrations, offering even broader application prospects.
One significant application of Schumann resonance is in treating insomnia, helping people enhance their sleep quality. The scope of Schumann resonance can also be extended to include Schumann Hertz audio and Schumann Hertz mechanical vibrations, offering even broader application prospects. We anticipate that multiple sub-sectors will experience rapid growth.
Item 1. Description of Business Overview Company Structure Datasea Inc. is a technology company incorporated in Nevada, USA, on September 26, 2014, with subsidiaries and operating entities located in Delaware, US, and China.
Item 1. Description of Business Overview Company Structure Datasea Inc. (“Datasea” or the “Company”, NASDAQ: DTSS) is a technology company incorporated under the laws of the State of Nevada on September 26, 2014, with subsidiaries and operating entities located in Delaware, US, and China.
Research and development have always been the core and driving force behind the company’s growth. The company is enhancing the application and industrialization of its unique acoustic high-tech services, implementing a comprehensive industrial technology layout in fields such as acoustic industrial applications, acoustic agriculture applications, acoustic medical care, acoustic health, and acoustic IoT technologies.
The Company is enhancing the application and industrialization of its unique acoustic high-tech services, implementing a comprehensive industrial technology layout in fields such as acoustic industrial applications, acoustic agriculture applications, acoustic medical care, acoustic health, and acoustic IoT technologies.
CN202311307735.4 A fast retracing method of global surface water range based on early Landsat images Substantive examination 5 CN202211404673.4 Method and system of water missing data reconstruction for optical remote sensing images Shuhai Jingwei: 6 202210811431.0 A high frequency acoustic effect air coupled microbial elimination method and device Accepted 7 202430090085.1 Smart Sound wave Sterilization and Deodorization(01) Substantive examination 8 202430090093.6 Smart Sound wave Sterilization and Deodorization (02) Substantive examination 9 202430253514.2 Sleep comforter (non-contact) Substantive examination 38 Major products The Company mainly focuses on developing the following two categories of products: software and smart hardware devices.
Publication Number Description Application Status Shuhai Beijing: 1 CN109146406A The attendance system of Shuhai Information based on GPS positioning information supported RFID technologies Substantive examination 2 CN108985423A An electronic student card system of Shuhai Information Substantive examination Xunrui Technology: 3 202110162293.3 Facial expression recognition method, device and electronic equipment based on complex scene Substantive examination 4 CN202311307735.4 A fast retracing method of global surface water range based on early Landsat images Substantive examination 5 CN202211404673.4 Method and system of water missing data reconstruction for optical remote sensing images Shuhai Jingwei: 6 202210811431.0 A high frequency acoustic effect air coupled microbial elimination method and device Accepted 7 202430090085.1 Smart Sound wave Sterilization and Deodorization(01) Substantive examination 8 202430090093.6 Smart Sound wave Sterilization and Deodorization (02) Substantive examination 9 202430253514.2 Sleep comforter (non-contact) Substantive examination Major products The Company mainly focuses on developing the following two categories of products: software and smart hardware devices.
Software system - mainly refers to software systems and solutions related to 5G messaging cloud platforms/5G digital platforms and smart cities.
Software system - mainly refers to software systems and solutions related to 5G messaging cloud platforms/5G digital platforms and smart cities, to ensure legal protection for the Company’s software assets.
These products are suitable for environments such as hospitals, airports, hotels, transportation, and residential settings. Leading laboratories, including the Wuhan Institute of Virology, have proven that this ultrasonic disinfection technology achieves 99.83% efficacy against Covid-19 within nine seconds and 99.99% efficacy against Staphylococcus Albus and E. coli.
Leading laboratories, including the Wuhan Institute of Virology, have proven that this ultrasonic disinfection technology achieves 99.83% efficacy against Covid-19 within nine seconds and 99.99% efficacy against Staphylococcus Albus and E. coli.
As a pioneer in China’s 5G multimodal digital field, Datasea deeply integrates the high-speed, low-latency capabilities of 5G networks with AI and big data processing technologies to create a comprehensive AI multimodal digital platform spanning multiple industries.
As a pioneer in China’s AI multimodal digital field, Datasea deeply integrates the high-speed, low-latency capabilities of 5G networks with AI and big data processing technologies to create a comprehensive AI multimodal digital platform spanning multiple industries. With its self-developed multimodal data processing platform, it achieves real-time collection, analysis, and generation of text, voice, image, video, and other data types.
Current PRC regulations permit WFOE to pay dividends to Shuhai Information Skill (HK) Limited only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations.
This Hong Kong company then distributes the funds as dividends to the parent company, Datasea Inc. Current PRC regulations permit WFOE to pay/distribute dividends to Shuhai Information Skill (HK) Limited only out of its accumulated after-tax profits, if any, determined in accordance with Chinese accounting standards and regulations.
Among these, ultrasound technology, particularly in the areas of air purification, beauty, and agricultural pest control, holds immense market potential. Ultrasound, or ultrasonics, is the science and technology of sound at frequencies beyond what we can hear. It has a wide range of applications, from medical and health, industrials/inspections, and agriculture.
Ultrasound, or ultrasonics, is the science and technology of sound at frequencies beyond what we can hear. It has a wide range of applications, from medical and health, industrials/inspections, and agriculture.
When microorganisms, including viruses like the coronavirus, are exposed to ultrasound, they experience intense vibrational strains that disrupt their outer shells and internal RNA.
When microorganisms, including viruses like the coronavirus, are exposed to ultrasound, they experience intense vibrational strains that disrupt their outer shells and internal RNA. The rapid movement of protons caused by the ultrasound ultimately destroys microbial structures, eliminating harmful pathogens.
To showcase the Company’s technology and products on the global market, Datasea, through its wholly-owned subsidiary, Datasea Acoustics LLC, based in Delaware, U.S., operates as the primary entity to offer advanced acoustic precision manufacturing products and solutions in fields including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, and more.
This dual model of technology licensing and solution delivery enables high-margin, scalable growth across industries. 13 To illustrate the Company’s technology and products on the global market, Datasea, through its wholly-owned Delaware subsidiary, Datasea Acoustics LLC, operates as the primary entity to offer advanced acoustic precision manufacturing products and solutions in fields including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, and more.
This change is from near to far, so that the vibration of the excited object spreads at a certain speed. The transmission of this vibration energy is the nature of the propagation of sound waves. Datasea’s acoustic high-tech business focuses on key applications of sound waves, integrating basic acoustic theory with artificial intelligence.
This change is from near to far, so that the vibration of the excited object spreads at a certain speed. The transmission of this vibration energy is the nature of the propagation of sound waves.
Through contractual arrangements (the “VIE Agreements”) with Shuhai Beijing, and its shareholders, Zhixin Liu, a stockholder as well as the Chairman, President and CEO of Datasea, and Fu Liu, a stockholder as well as a Director of Datase, we receive benefits from the business and lead the daily operation of Shuhai Beijing.
Through contractual arrangements (the “VIE Agreements”) with Shuhai Beijing and its shareholders—Zhixin Liu (a shareholder, President, and CEO of Datasea) and Fu Liu (a shareholder and Director of Datasea)—the Company is entitled to the economic benefits from Shuhai Beijing’s business operations and has control over its day-to-day operations.
For example, ultrasound technology has promising application prospects in various sectors, including healthcare, industrial, environmental protection, beauty, and agriculture. Additionally, Schumann resonance has shown effectiveness in sleep health and directional audio plays a crucial role in specific content delivery and personal privacy protection, among other applications.
Additionally, Schumann resonance has shown effectiveness in sleep health and directional audio plays a crucial role in specific content delivery and personal privacy protection, among other applications. Among these, ultrasound technology, particularly in the areas of air purification, beauty, and agricultural pest control, holds immense market potential.
The Entrustment Agreement does not have an expiration date, but the parties can agree in writing to terminate the Entrustment Agreement. Zhixin Liu, is the Chairman of the Board, President, CEO of DataSea and Corporate Secretary, and Fu Liu, a Director of the DataSea (Fu Liu is the father of Zhixin Liu).
The Entrustment Agreement does not have an expiration date, but the parties can agree in writing to terminate the Entrustment Agreement.
This involves studying and applying non-audible mechanical wave effects, utilizing sound wave technology and acoustic effects as a technical system for collecting and processing acoustic data and solving problems. In particular, ultrasound technology uses the cavitation, thermal, and mechanical effects of ultrasound to meet various application needs, such as disinfection and sterilization, crop drying, safety monitoring, skincare, and medical health.
This involves studying and applying non-audible mechanical wave effects, utilizing sound wave technology and acoustic effects as a technical system for collecting and processing acoustic data and solving problems.
Leveraging Datasea’s cutting-edge acoustic high-tech combined with AI technology, we have successfully developed a series of ultrasonic disinfection products. These include the acoustic health series ultrasonic disinfectors, ultrasonic sterilizers and purifiers for restrooms, bedrooms, living rooms, kitchens, and pets, as well as innovative non-contact ultrasonic skin repair devices.
These include the acoustic health series ultrasonic disinfectors, ultrasonic sterilizers and purifiers for restrooms, bedrooms, living rooms, kitchens, and pets, as well as innovative non-contact ultrasonic skin repair devices. These products are suitable for environments such as hospitals, airports, hotels, transportation, and residential settings.
Additionally, measures such as collaborations with universities and research institutions in the United States, obtaining patents through multiple channels, production assembly planning, and potential acquisitions contribute to the sustainable development of Datasea Acoustics LLC. 15 5G AI multimodal digital Datasea continues to invest in the research and application of 5G AI multimodal digital technology, committed to providing customers with leading intelligent solutions.
The company has already established contractual relationships with various online and offline channels in the United States, laying out the market plan for acoustic-related products. Additionally, measures such as collaborations with universities and research institutions in the United States, obtaining patents through multiple channels, production assembly planning, and potential acquisitions contribute to the sustainable development of Datasea Acoustics LLC.
Item % in budget 1 Salary of R&D personnel (incl. the introduction of high-end talents) 50 % 2 Procurement of scientific research facilities 20 % 3 Joint laboratories with universities, research institutes 8 % 4 Procurement of testing devices 6 % 5 Intermediate testing and tooling 5 % 6 Establishment of new technical schedule 4 % 7 Appointment of external technical experts 5 % 8 Others 2 % 43 Product Manufacturing Intelligent hardware terminals For the fiscal year ended June 30, 2024, our products primarily consist the “HailiJia” series of ultrasonic air sterilizer products, including 1) In-door models (floor and desktop models) suitable for different areas and functions, and 2) In-vehicle models; 3) Restroom and Cloakroom purification and deodorization.
Item % in budget 1 Salary of R&D personnel (incl. the introduction of high-end talents) 50 % 2 Procurement of scientific research facilities 20 % 3 Joint laboratories with universities, research institutes 8 % 4 Procurement of testing devices 6 % 5 Intermediate testing and tooling 5 % 6 Establishment of new technical schedule 4 % 7 Appointment of external technical experts 5 % 8 Others 2 % Research and Development Outlook for Acoustic Applications Management believes these areas represent potential future applications of the Company’s “Acoustic+” core technology system.
Infrasound is a wave phenomenon of the same physical nature as sound but with frequencies below the range of human hearing, specifically below a frequency of 20 Hz.
Additionally, global subfields such as acoustic medicine and neuro-regulation are experiencing significant growth, providing vast space for acoustic intelligence technologies to penetrate high-value applications. Infrasound is a wave phenomenon of the same physical nature as sound but with frequencies below the range of human hearing, specifically below a frequency of 20 Hz.
The rapid movement of protons caused by the ultrasound ultimately destroys microbial structures, eliminating harmful pathogens. 14 Especially in the field of ultrasonic technology, we utilize the cavitation, thermal, and mechanical effects of ultrasound to address various application needs, including disinfection, sterilization, crop drying, safety monitoring, skincare, and medical wellness.
In the field of ultrasonic technology, we utilize the cavitation, thermal, and mechanical effects of ultrasound to address various application needs, including disinfection, sterilization, crop drying, safety monitoring, skincare, and medical wellness. For example, in the field of ultrasonic disinfection, when ultrasound stimulates microorganisms (including coronaviruses), it causes significant vibrational strain, disrupting the virus’s outer shell and internal RNA.
This method of disinfection is a broad-spectrum, non-selective approach distinct from antibiotics. 16 Industry Application and Market Scale There continues to be significant demand and diverse opportunities for the integration of acoustics with fields such as life and health, natural resources, and agriculture.
Industry Application and Market Scale We believe that there is and continues to be significant demand and diverse opportunities for the integration of acoustics with fields such as life and health, natural resources, and agriculture. For example, ultrasound technology has promising application prospects in various sectors, including healthcare, industrial, environmental protection, beauty, and agriculture.
Government Regulation and Licenses Our operations are subject to and affected by PRC laws and regulations.
Through the acoustic sensor network, the company aims to build a new intelligent health and environmental management ecosystem. 39 Government Regulation and Licenses Our operations are subject to and affected by PRC laws and regulations.
Key Suppliers and Raw Materials Our key suppliers for Hailijia’s air disinfection and sterilization products series are as follows: ● Guangdong Hakebao Environmental Technology Co., Ltd. ● Shenzhen Ajison Environmental Protection Technology Co., Ltd ● Shenzhen Antuopu Technology Co., Ltd ● Komi Intelligent Manufacturing (Shenzhen) Co., Ltd. Baihui Precision Plastic Mould (Shenzhen) Co., Ltd. Shenzhen Fubon New Technology Co., Ltd.
Our Suppliers The core suppliers for the Company’s “Datasea Tian Ear” air disinfection and sterilization product line include: ● Guangdong Hakebao Environmental Technology Co., Ltd. ● Shenzhen Aijing Sen Environmental Protection Technology Co., Ltd. ● Shenzhen Antop Technology Co., Ltd. ● Komi Intelligent Manufacturing (Shenzhen) Co., Ltd. ● Baihui Precision Plastics Molding (Shenzhen) Co., Ltd. ● Shenzhen Fubon New Technology Co., Ltd.
To promote research and innovation in these areas, the Company actively collaborates with several prominent research institutions and universities, including Chinese Academy of Sciences Institute of Acoustics, China Academy of Information and Communications Technology Cloud Computing and Big Data Research Institute, Tsinghua University Internet Industry Research Institute, Harbin Institute of Technology Artificial Intelligence Research Institute, Beijing Union University, and Jilin University Remote Sensing Research Institute.
Technology & Innovation Research Cooperation and Industry Standards The Company established collaborations with several top domestic and international research institutions in the two core areas of acoustic technology and AI multimodal digitalization, building a “industry-university-research-application” collaborative innovation system, including: ● Institute of Acoustics, Chinese Academy of Sciences (focusing on fundamental acoustic theory and applied research), 25 ● Cloud Computing and Big Data Research Institute, China Academy of Information and Communications Technology (advancing AI multimodal technology and digital standards integration), ● Internet Industry Research Institute, Tsinghua University (exploring the integration of acoustics and AI in industrial applications), ● Institute of Artificial Intelligence, Harbin Institute of Technology (developing multimodal algorithms and models), ● Beijing Union University and Jilin University Remote Sensing Institute (expanding the application of acoustic technology in environmental monitoring, agriculture, and other fields).
As of September 26, 2024, neither Shuhai Beijing nor any of Datasea’s subsidiaries have ever paid dividends, made earnings distributions, transferred cash or other assets by kind to Datasea directly or indirectly. Datasea has not made any distributions or paid dividends to its shareholders, including U.S. investors, as of the date of this report.
As of June 30, 2025, neither Shuhai Beijing nor its Chinses subsidiaries have distributed cash dividends or transferred profits to the US parent company or any foreign entities; the U.S. parent company has not distributed dividends to its shareholders, including U.S. investors.
For example, in the field of ultrasonic disinfection, when ultrasound stimulates microorganisms (including coronaviruses), it causes significant vibrational strain, disrupting the virus’s outer shell and internal RNA. Ultimately, through a combination of mechanical destruction, cavitation effects, and advanced oxidative processes, pathogenic microorganisms are eliminated. This method provides a broad-spectrum, non-selective disinfection alternative to antibiotics.
Ultimately, through a combination of mechanical destruction, cavitation effects, and advanced oxidative processes, pathogenic microorganisms are eliminated. This method provides a broad-spectrum, non-selective disinfection alternative to antibiotics. Leveraging Datasea’s cutting-edge acoustic high-tech combined with AI technology, we have successfully developed a series of ultrasonic disinfection products.
Shuhai Beijing possesses cutting-edge products and solutions in acoustics high tech and 5G AI multimodal digital applications to support commercial enterprises, households and individuals in China. 1 The development and internationalization of acoustic products, including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, have always been a crucial strategy for the Company.
Shuhai Beijing possesses cutting-edge products and solutions in acoustics high tech and AI multimodal digital applications to support commercial enterprises, households and individuals in China. Our business operations are primarily based in China. The Company also has business operations in the United States and is continuing to expand its operations in other countries.
The capital of a foreign invested enterprise shall not be used for the following purposes: (i) directly or indirectly used for payment beyond the business scope of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly use for investment in securities or investments other than banks’ principal-secured products unless otherwise provided by relevant laws and regulations; (iii) the granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license; and (iv) paying the expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate enterprises).
The capital must not be used for payments beyond the business scope, securities investment, or investment in wealth management products other than those that are bank principal-protected (unless otherwise specified by laws and regulations), issuing loans to non-affiliated enterprises (unless explicitly permitted within the business scope or in specific pilot areas), or paying for non-business-related real estate purchases (except for foreign-invested real estate enterprises). 11 Our Business Summary Our Business Summary The Company is implementing a dual-core business structure: (i) high-tech acoustics and (ii) AI multimodal digital technology business.
Sales and Distribution As of the date of this report, our acoustic products are mainly developed and produced in China, and the products we sell in China are mainly through multi-channels and extensively cooperating with new media.
Acoustic plant growth promoters, also referred to as “sound fertilizer,” are being designed to enhance photosynthesis and nutrient absorption, while zero-gravity plant factories for space stations are exploring the use of acoustic waves to simulate a space-like environment for soil-free cultivation. 17 Sales and Distribution As of the date of this Annual Report, our acoustic products are primarily developed and produced in China, and we sell these products primarily through multi-channels, extensively cooperating with new media.
The WFOE may receive payments from Shuhai Beijing, and then can remit payments to Shuhai Information Skill (HK) Limited in accordance with its registration with the Chinese authority under the “Notice of the State Administration of Foreign Exchange on Relevant Issues concerning Foreign Exchange Administration for Domestic Residents to Engage in Financing and in Return Investment via Overseas Special Purpose Companies” and pursuant to the VIE Agreements.
After completing the registration with the State Administration of Foreign Exchange (SAFE) (according to the “Notice on Issues Related to Foreign Exchange Management for Domestic Residents’ Foreign Investment and Return Investments by Special Purpose Companies” issued by SAFE), the WFOE transfers the funds to Shuhai Information Skill (HK) Limited.
Although we believe that CSRC’s approval is not required for the listing and trading of our common stock on Nasdaq, we cannot assure you that relevant PRC governmental agencies, including the CSRC, would reach the same conclusion as we do. 45 Shuhai Beijing currently maintains the following licenses issued by the PRC government that are material to its operations: ● Business License issued by Beijing Municipal Industry and Commerce Administration; ● Beijing Statistics Registration Certificate issued by Beijing Municipal Bureau of Statistics; ● Value-Added Telecommunications Business Operating License issued by Ministry of Industry and Information Technology; ● Security Engineering Qualification Certificate issued by China Security Technology Prevention Industry Association; and ● The information security management system certification certificate issued by New Century Inspection and Certification Co., Ltd; ● Environmental Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd; ● Occupational Health and Safety Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd ● Quality Management System Certification Certificate issued by Zhengbiao Lianxin (Beijing) Certification Service Co., Ltd ● Network Culture Business License issued by the Beijing Municipal Bureau of Culture and Tourism Shuhai Beijing also maintains the following certificates for its business: ● National High Tech Enterprises Certificate jointly issued by Beijing Municipal Science & Technology Commission, Beijing Municipal Finance Bureau, and Beijing Municipal Tax Service, State Taxation Administration; ● Zhongguancun High Tech Enterprises Certificate issued by Zhongguancun Science Park Administrative Committee; ● Membership Certificate issued by China Security Technology Prevention Industry Association; ● Information Security Management System Certificate issued by Beijing Inspection and Certification Limited Company; and ● Environmental Management System Certificate issued by Huaxinchuang (Beijing) Certification Center Co., Ltd ● Beijing Municipal Bureau of Economy and Information Technology issued the special new small and medium-sized enterprise 46 Employees As of June 30, 2024, we have approximately 36 full-time employees and no part-time employees.
Shuhai Beijing currently holds the following licenses issued by the PRC government, which are material to its operations: ● Business License issued by the Beijing Municipal Industry and Commerce Administration; ● Beijing Statistics Registration Certificate issued by the Beijing Municipal Bureau of Statistics; ● Value-Added Telecommunications Business Operating License issued by the Ministry of Industry and Information Technology; ● Security Engineering Qualification Certificate issued by the China Security Technology Prevention Industry Association; ● Information Security Management System Certification Certificate issued by New Century Inspection and Certification Co., Ltd; ● Environmental Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd; 40 ● Occupational Health and Safety Management System Certification Certificate issued by Beijing Xinjiyuan Certification Co., Ltd; ● Quality Management System Certification Certificate issued by Zhengbiao Lianxin (Beijing) Certification Service Co., Ltd.
The Company checks whether the manufacturing quality of outsourcing partners meets the Company’s requirements by assigning resident personnel to do sample test of manufactured goods and collecting feedback from the customer experience. 44 Outsourcing manufacturing partners As of June 30, 2024, we have established relationships with approximately five outsourced manufacturing partners and a supplier system of approximately 40 suppliers to provide various components and services for the company’s new acoustic high-tech products.
Outsourcing Management : o Outsourcing Collaboration Scale : As of June 30, 2025, the Company has established collaborations with approximately 5 outsourced manufacturing partners, building a supply system with around 40 suppliers to provide various components and services for the acoustic high-tech products.
For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 34 and “VIE Agreements” on page 5. Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform.
For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 24 and “VIE Agreements” on page 3.
Under the terms of the Operation and Intellectual Property Service Agreement, Shuhai Beijing entrusts Tianjin Information to manage its operations, manage and control its assets and financial matters, and provide intellectual property services, purchasing management services, marketing management services and inventory management services to Shuhai Beijing.
Pursuant to the Operation and Intellectual Property Service Agreement, Tianjin Information Sea Information Technology Co., Ltd. (“WFOE”) is granted operational management rights over Shuhai Beijing under this agreement, including day-to-day business management, asset and financial control, and the provision of intellectual property services (such as technology licensing), procurement management, marketing management, and inventory management.
The revenue growth is primarily due to the rapid expansion of China’s 5G AI multimodal communication business, with Datasea’s 5G AI multimodal digital business maintaining a leadership position in the industry. The continuous growth of the customer base supports the company’s significant business expansion.
The growth is primarily attributed to the rapid expansion of the Chinese AI multimodal digital business market and the continuous expansion of the customer base, with stable execution of long-term contracts.
China’s inaugural White Paper on High-Tech Acoustic Industry.Additionally, the company has jointly released China’s first white paper on the high-tech acoustic industry with the Ministry of Industry and Information Technology, the Key Laboratory for Artificial Intelligence Technologies and Applications Evaluation, and the Cloud Computing and Big Data Research Institute of the China Academy of Information and Communications Technology.
In cooperation with the Ministry of Industry and Information Technology and the China Academy of Information and Communications Technology, the company jointly published China’s first “Acoustic High-Tech Industry White Paper,” which systematically elaborates on the principles of acoustic technology, commercial application paths, and industry development prospects.
Simultaneously, in the 5G multimodal domain, Datasea leverages its AI-driven services and solutions to offer digital and intelligent services to both businesses and individual users. We deeply understand the market’s demand for new application areas, technologies, and requirements. Therefore, through the relentless efforts of our team, we have achieved leading-edge advancements in acoustic understanding and algorithms.
Therefore, through the relentless efforts of our team, we have achieved leading-edge advancements in acoustic understanding and algorithms.
The Equity Pledge Agreement serves to guarantee the performance by Shuhai Beijing of its obligations under the Operation and Intellectual Property Service Agreement and the Option Agreement. Pursuant to the Equity Pledge Agreement, Shuhai Beijing Stockholders have agreed to pledge all of their equity interests in Shuhai Beijing to Tianjin Information.
Equity Pledge Agreement To secure the performance of the above-referenced Operation and Intellectual Property Service Agreement and Equity Option Agreement, Shuhai Beijing’s Stockholders pledged all of their equity interests in Shuhai Beijing to WFOE as collateral. During the pledge period, WFOE is entitled to receive all dividends, bonuses, and other investment returns derived from the pledged equity.
If Shuhai Beijing suffers a loss and as a result does not have pre-tax income, such loss shall be carried forward to the following month to offset the operating fee to be paid to WFOE if there is pre-tax income of Shuhai Beijing the following month.
The service fee collected monthly by WFOE equals Shuhai Beijing’s pre-tax profit for that period; if Shuhai Beijing incurs a loss, such loss will be carried forward to offset potential service fees in the following month.
See “Summary Consolidated Financial Data”. 13 Our Business Summary Acoustic business The company focuses on acoustic business with an emphasis on ultrasound, infrasound, and Schumann resonance technology. In the field of high-tech acoustics, the company is one of the global initiators of the “acoustic effects” concept, providing advanced acoustic products and solutions worldwide.
In the field of high-tech acoustics, the Company is one of the global initiators of the “acoustic effects” concept, providing advanced acoustic products and solutions worldwide. Simultaneously, in the AI multimodal digital domain, Datasea leverages its AI-driven services and solutions to offer digital and intelligent services to both businesses and individual users.
(NASDAQ: IPW) for product cooperation, marking the beginning of a joint effort to enhance product distribution in the U.S. online market. On the other hand, Datasea continues to invest in the research and application of 5G AI multimodal digital technology, aiming to provide customers with cutting-edge intelligent solutions.
AI multimodal digital technology business segment Datasea also continues to invest in the research and application of AI multimodal digital technology, committed to providing customers with leading intelligent solutions.
As a result of the Company’s increased investment in R&D and the training of technical talents, the Company’s software has a total of 139 copyright registrations in China, of which Shuhai Beijing owns 39 Software Copyright registrations, Xunrui owns 36 Software Copyright registrations, Tianjin Information owns 31 Software Copyright registrations and Shuhai Acoustic owns 3 Software Copyrights, and Shenzhen Jingwei owns 30 Software Copyrights.
As a result of the Company’s increased investment in R&D and the training of technical talents, as of the date of this Annual Report, the Company and its subsidiaries in China have obtained a total of 177 software copyrights, all of which are self-developed software systems or platforms.
The Agreement marks an important step for Datasea in the production and deployment of its newly upgraded hi-tech intelligent acoustic deodorization and disinfection products. The raw materials used in the Hailijia air disinfection and sterilization products series primarily include 40KHz ultrasonic kill module, Shipu DC brushless motors, temperature and humidity sensors, dust sensors, ultraviolet lamps and HEPA13 level layered filters.
This agreement is aimed at enhancing product manufacturing precision and scalability for upgraded acoustic intelligent deodorizing and sterilizing products. The core raw materials for the “Datasea Tian Ear” series products include 40kHz ultrasonic sterilization modules, Seepo DC brushless motors, temperature and humidity sensors, dust sensors, UV lamps, and HEPA13 grade multi-layer filters.
To promote research and innovation in these areas, the Company actively collaborates with several prominent research institutions and universities, including Chinese Academy of Sciences Institute of Acoustics, China Academy of Information and Communications Technology Cloud Computing and Big Data Research Institute, Tsinghua University Internet Industry Research Institute, Harbin Institute of Technology Artificial Intelligence Research Institute, Beijing Union University, and Jilin University Remote Sensing Research Institute.
Industry-University-Research Collaborative Innovation : The Company has established joint laboratories with institutions such as Institute of Acoustics, Chinese Academy of Sciences, Internet Industry Research Institute, Tsinghua University, and Artificial Intelligence Research Institute, Harbin Institute of Technology, driving the rapid transformation of cutting-edge technologies through industrial research projects.
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The company provides acoustic business services (focusing on high-tech acoustic technologies and applications such as ultrasound, infrasound, and Schumann resonance), 5G application services (5G AI multimodal digital business), and other products and services to various corporate and individual customers. In the acoustic business sector, Datasea is a global pioneer of the “acoustic effect” concept.
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Since its incorporation in 2014, Datasea has been committed to the exploration, application, and commercialization of cutting-edge technologies. As a global high-tech company spanning both the Chinese and U.S. markets, Datasea’s business focuses on two main segments: Acoustic High-Tech and AI Multimodal Digitalization.
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Utilizing global leading “Acoustics + AI” precision manufacturing as the digital application framework, and leveraging sound wave technologies combined with acoustic effects as the technological system, the company outputs acoustic high-tech products and solutions worldwide. Datasea strives to be a leader in the development of China’s high-tech precision manufacturing in the acoustic industry.
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Through continuous R&D investment, product innovation, and industrial collaboration, the Company has gradually built a complete “technology – product – market” closed-loop system, achieving large-scale application and rapid growth in several industries. Datasea continuously integrates its self-developed acoustic technologies with artificial intelligence algorithms to create industry applications in various fields.
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Our products have wide-ranging applications across various industries and sectors, including acoustic agriculture, acoustic industry, acoustic medicine, acoustic health, and acoustic IoT technologies. In the 5G application sector, Datasea provides digital and intelligent services to enterprises and individual users in China, leveraging AI, machine learning, and data analytic capabilities to offer a wide range of 5G application products and solutions.
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Through “acoustics + application scenarios,” the Company is expanding cross-industry applications. During the last two fiscal years, as the high-margin solutions of the two core segments—Acoustic High-Tech and AI Multimodal Digitalization—gradually scale up, Datasea has transitioned from “scale growth” to “quality improvement.” This transition lays a solid foundation for achieving long-term goals and maximizing shareholder value by the Company.
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For the fiscal year ending June 30, 2024, our revenue was $23,975,867, reflecting a 558.6% increase compared to the same period in 2023. This revenue growth is primarily due to the rapid expansion of our 5G AI multimodal communication business in China, with the company’s 5G AI digital business maintaining a leading position in the industry.
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The Company actively participates in and contributes to the industrial development of the ‘acoustic effect’ concept.
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Our growing customer base continues to support substantial business growth. Additionally, as of the date of September 20, the company has received approximately RMB 152.40 million (equivalent to $21.37 million) in cash prepayments from large customers of our 5G AI multimodal digital business.
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Leveraging acoustic technology, the Company establishes unique technological barriers in five key fields: 1) healthcare, 2) medical, 3) industrial, 4) agricultural, and 5) IoT, focusing on “Acoustic High-Tech + AI Multimodal Digitalization” as its dual-business engines, achieving full-chain value conversion from technological R&D to industry application.
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These prepayments represent service obligations that have not yet been recognized as revenue for this fiscal year and will be recognized in future financial statements. The total value of contracts currently in execution, which will be recognized as revenue, exceeds $100 million.
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The Company operates in the two business segments: 1) Acoustic High-Tech and 2) AI Multimodal Digitalization In the Acoustic High-Tech field, the Company focuses on the innovation of acoustic technology in multiple scenarios, with “non-hearable mechanical wave effects” as the R&D core.
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Following the establishment of its wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware in July 2023, the Company has actively implemented its global strategy. As of the date of this report, the Company has partnered with several well-known U.S. online retailers and local smart product distributors, including iPower Inc.
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In the environmental domain, the Company has launched a series of acoustic environmental products to meet the purification needs of public and household settings; in the health domain, it has launched a series of acoustic medical and healthcare products, breaking through in areas such as neuro-regulation and acupoint stimulation, extending acoustic applications from environmental assistance to precise health management and clinical intervention.
Removed
(NASDAQ: IPW) and Meglio Interiors LLC (“Meglio”), based in Chamblee, Georgia, to expand the online and physical store distribution of its acoustic-related products in the U.S. Additionally, in collaboration with the renowned U.S. intellectual property firm Paul & Paul, we are actively pursuing patent applications and acquiring high-quality patents to build a strong international intellectual property portfolio.
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In the industrial domain, the Company explores the application of ultrasound in fields such as industrial precision processing, agricultural pest control, and agricultural product preservation, forming a cross-industry empowerment model of “acoustics + AI + vertical scenarios.” In the AI Multimodal Digitalization field, the Company continues to invest in the research and application of AI multimodal digital technology, aiming to provide customers with cutting-edge intelligent solutions.
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Focusing on the core area of acoustic high-tech, we are seeking potential merger and acquisition targets in applications for agriculture and industry, acoustic medical aesthetics, acoustic health, and acoustic IoT technologies. This is part of our strategy for international expansion through mergers and acquisitions.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

66 edited+55 added−45 removed214 unchanged
Biggest changeAccording to the management system imperfections concerning job responsibilities and departmental processes that are identified through self-examination, the Company, by highlighting six elements of “internal environment, risk assessment, control activities, information and communication, and internal supervision” and seven control measures of separate control of incompatible functions, authorization and approval control, accounting system control, property protection control, budget control, operation analysis control and performance appraisal control”, is gradually establishing and improving an internal control system featuring organizational structure, development strategy, human resources, social responsibility, corporate culture, financial activities, procurement business sales business, research and development, financial reports, comprehensive budget, contract management, internal information transfer and information system and other contents, and it is formulating the internal control system applicable to the whole company and organizing related implementation in accordance with relevant laws and regulations and supporting measures..
Biggest changeAccording to the management system imperfections concerning job responsibilities and departmental processes that are identified through self-examination, the Company, by highlighting six elements of “internal environment, risk assessment, control activities, information and communication, and internal supervision” and seven control measures of separate control of incompatible functions, authorization and approval control, accounting system control, property protection control, budget control, operation analysis control and performance appraisal control”, is gradually establishing and improving an internal control system featuring organizational structure, development strategy, human resources, social responsibility, corporate culture, financial activities, procurement business sales business, research and development, financial reports, comprehensive budget, contract management, internal information transfer and information system and other contents, and it is formulating the internal control system applicable to the whole company and organizing related implementation in accordance with relevant laws and regulations and supporting measures. 46 By the end of the fiscal year ended June 30, 2025, we 1) established a Risk Control Department led by the internal control director and external legal counsels to ensure the Company’s compliance with relevant regulations and risk management requirements; 2) formulated new policies or integrated a series of internal control policies, including but not limited to the process from procurement to payment, the process from payment to the sales, cash management, cost management, budget process, accounts receivable policy, policy to prevent and detect fraud, assets and inventory management, internal audit policy and cost accounting; 3) set up bookkeeping under U.S.
Pursuant to the Data Security Management Regulations Draft, data processors holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. Data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure, or deletion of data.
Pursuant to the Data Security Management Regulations Draft, data processors holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. Data processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure, or deletion of data.
There remains uncertainty, however, as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft.
There remains uncertainty, however, as to how the Cybersecurity Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Security Administration Draft.
If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us.
If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us.
If any of the affiliated entities becomes the subject of a bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity, which could materially and adversely affect our business, financial condition and results of operations. We currently conduct our operations in China through contractual arrangements with the affiliated entities.
If any of the affiliated entities becomes the subject of bankruptcy or liquidation proceeding, we may lose the ability to use and enjoy assets held by such entity, which could materially and adversely affect our business, financial condition and results of operations. We currently conduct our operations in China through contractual arrangements with the affiliated entities.
High inflation may in the future cause the Chinese government to impose controls on credit and/or prices, or to take other action, which could inhibit economic activity in China, and thereby harm the market for our services and products. The fluctuation of the Renminbi may have a material adverse effect on your investment.
High inflation may in the future cause the Chinese government to impose controls on credit and/or prices, or to take other action, which could inhibit economic activity in China, and thereby harm the market for our services and products. 53 The fluctuation of the Renminbi may have a material adverse effect on your investment.
The market price for our common stock may be volatile and subject to wide fluctuations due to factors such as: ● the perception of U.S. investors and regulators of U.S. listed Chinese companies; ● actual or anticipated fluctuations in our quarterly operating results; ● changes in financial estimates by securities research analysts; ● negative publicity, studies or reports; ● conditions in Chinese and global cybersecurity product markets; ● our capability to match and compete with technology innovations in the industry; 68 ● changes in the economic performance or market valuations of other companies in the same industry; ● announcements by us or our competitors of acquisitions, strategic partnerships, joint ventures or capital commitments; ● addition or departure of key personnel; ● fluctuations of exchange rates between RMB and the U.S. dollar; and ● general economic or political conditions in or impacting China.
The market price for our common stock may be volatile and subject to wide fluctuations due to factors such as: ● the perception of U.S. investors and regulators of U.S. listed Chinese companies; ● actual or anticipated fluctuations in our quarterly operating results; ● changes in financial estimates by securities research analysts; ● negative publicity, studies or reports; ● conditions in Chinese and global cybersecurity product markets; ● our capability to match and compete with technology innovations in the industry; 62 ● changes in the economic performance or market valuations of other companies in the same industry; ● announcements by us or our competitors of acquisitions, strategic partnerships, joint ventures or capital commitments; ● addition or departure of key personnel; ● fluctuations of exchange rates between RMB and the U.S. dollar; and ● general economic or political conditions in or impacting China.
Liu and Mr. Liu to abide by the laws of the State of Nevada and China, which provide that directors owe a fiduciary duty to the Company that requires them to act in good faith and in what they believe to be the best interests of the Company and not to use their position for personal gains.
Liu to abide by the laws of the State of Nevada and China, which provide that directors owe a fiduciary duty to the Company that requires them to act in good faith and in what they believe to be the best interests of the Company and not to use their position for personal gains.
As a consequence, we cannot be certain that the equity interest will be disposed pursuant to the contractual arrangement or ownership by the record holder of the equity interest. 55 All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC.
As a consequence, we cannot be certain that the equity interest will be disposed pursuant to the contractual arrangement or ownership by the record holder of the equity interest. All of these contractual arrangements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC.
From March 31, 2023, enterprises that have been listed overseas shall constitute existing enterprises and are not required to conduct the overseas listing filing procedure immediately, but shall carry out filing procedures as required if they conduct future offshore offerings or capital raising activities or are involved in other circumstances that require filing with the CSRC. 58 On February 24, 2023, the CSRC, together with other relevant government authorities, issued the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies, or the Archives Rules, which became effective on March 31, 2023.
From March 31, 2023, enterprises that have been listed overseas shall constitute existing enterprises and are not required to conduct the overseas listing filing procedure immediately, but shall carry out filing procedures as required if they conduct future offshore offerings or capital raising activities or are involved in other circumstances that require filing with the CSRC. 52 On February 24, 2023, the CSRC, together with other relevant government authorities, issued the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities Offering and Listing by Domestic Companies, or the Archives Rules, which became effective on March 31, 2023.
Such uncertainties may therefore increase our operating expenses and costs, and materially and adversely affect our business and results of operations. The PRC’s legal and judicial system under special circumstances may not adequately protect our business and operations and the rights of foreign investors.
Such uncertainties may therefore increase our operating expenses and costs, and materially and adversely affect our business and results of operations. 54 The PRC’s legal and judicial system under special circumstances may not adequately protect our business and operations and the rights of foreign investors.
China’s regulators may impose penalties for non-compliance ranging from fines or suspension of operations, and this could lead to us delisting from the U.S. stock market. 65 In addition, our securities may be prohibited from trading on a national exchange or over-the-counter in the United States under the Holding Foreign Companies Accountable Act, if the PCAOB determines that it cannot inspect or fully investigate our auditors for two consecutive years.
China’s regulators may impose penalties for non-compliance ranging from fines or suspension of operations, and this could lead to us delisting from the U.S. stock market. 59 In addition, our securities may be prohibited from trading on a national exchange or over-the-counter in the United States under the Holding Foreign Companies Accountable Act, if the PCAOB determines that it cannot inspect or fully investigate our auditors for two consecutive years.
A substantial portion of our business and revenue depends on the growth of acoustics high tech , 5G communication in the PRC and globally, including the continued development and expansion of the Internet.
A substantial portion of our business operations and revenue depends on the growth of acoustics high tech, 5G communication in the PRC and globally, including the continued development and expansion of the Internet.
Any violation of these laws could result in investigations, claims, changes to our business practices, increased cost of operations and declines in user growth, retention or engagement, any of which could materially adversely affect our business, results of operations and financial condition. 53 In November 2016, the Standing Committee of the National People’s Congress passed China’s first cybersecurity law, or CSL, which took effect in June 2017.
Any violation of these laws could result in investigations, claims, changes to our business practices, increased cost of operations and declines in user growth, retention or engagement, any of which could materially adversely affect our business, results of operations and financial condition. 47 In November 2016, the Standing Committee of the National People’s Congress passed China’s first cybersecurity law, or CSL, which took effect in June 2017.
We cannot guarantee, however, that we will not be subject to cybersecurity review and network data security review in the future, which could materially and adversely affect our business, financial conditions, and results of operations. 66 We may be subject to intellectual property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely to us, materially disrupt our business.
We cannot guarantee, however, that we will not be subject to cybersecurity review and network data security review in the future, which could materially and adversely affect our business, financial conditions, and results of operations. 60 We may be subject to intellectual property infringement claims, which may force us to incur substantial legal expenses and, if determined adversely to us, materially disrupt our business.
According to the latest amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became effective on February 15, 2022, an online platform operator holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. 64 As of the date of this report, Datasea, its subsidiaries, the VIE and VIE’s subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries to go through cybersecurity review or network data security review by the CAC.
According to the latest amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became effective on February 15, 2022, an online platform operator holding more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. 58 As of the date of this Annual Report, Datasea, its subsidiaries, the VIE and VIE’s subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries to go through cybersecurity review or network data security review by the CAC.
Future increases in China’s inflation and material increases in the cost of labor may materially and adversely affect our profitability and results of operations. 63 Our auditor is headquartered in the United States and is subject to inspection by the PCAOB on a regular basis.
Future increases in China’s inflation and material increases in the cost of labor may materially and adversely affect our profitability and results of operations. 57 Our auditor is headquartered in the United States and is subject to inspection by the PCAOB on a regular basis.
As a result, our business operations and our ability to make distributions to you could be materially and adversely affected. 62 We may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.
As a result, our business operations and our ability to make distributions to you could be materially and adversely affected. 56 We may be subject to fine due to our insufficient payment of the social insurance and housing fund of the employees.
We cannot assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. 56 Currently, we do not have any arrangements to address potential conflicts of interest between these shareholders and our company. We rely on Ms.
We cannot assure you that when conflicts of interest arise, any or all of these shareholders will act in the best interests of our company or such conflicts will be resolved in our favor. Currently, we do not have any arrangements to address potential conflicts of interest between these shareholders and our company. We rely on Ms. Liu and Mr.
Many of these laws and regulations are subject to constant evolvement and change and uncertain interpretation.
Many of these laws and regulations are subject to constant change and uncertain interpretation.
Our officers and directors collectively hold approximately 50.4% beneficial ownership of our Company. Two directors are members of the same family.
Our officers and directors collectively hold approximately 57.4% beneficial ownership of our Company. Two directors are members of the same family.
Datasea is a Delaware company conducting substantially all of its operations in China through its PRC subsidiaries, the VIE and its subsidiaries established in China. Datasea may make loans to the PRC subsidiaries and VIE entities subject to the approval from governmental authorities and limitation of amount, or may make additional capital contributions to subsidiaries and VIE entities in China.
Datasea is a Nevada corporation conducting substantially all of its operations in China through its PRC subsidiaries, the VIE and its subsidiaries established in China. Datasea may make loans to the PRC subsidiaries and VIE entities subject to the approval from governmental authorities and limitation of amount, or may make additional capital contributions to subsidiaries and VIE entities in China.
Substantially all of our revenue is denominated in Renminbi. As a result, restrictions on currency exchange may limit our ability to use revenue generated in Renminbi to fund any business activities we may have outside China in the future or to make dividend payments to our shareholders in U.S. dollars.
As a result, restrictions on currency exchange may limit our ability to use revenue generated in Renminbi to fund any business activities we may have outside China in the future or to make dividend payments to our shareholders in U.S. dollars.
Risks Relating to An Investment in Our Common Stock If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for our shares and make obtaining future debt or equity financing more difficult for us.
If we fail to comply with the continued listing requirements of Nasdaq, we would face possible delisting, which would result in a limited public market for our shares and make obtaining future debt or equity financing more difficult for us.
Our business and operations could be seriously harmed as a result of any of these risks. Risks Relating to Our Business and Industry We have a limited operating history as a developer of acoustics high tech, 5G AI multimodal digital and other products and services.
Our business and operations could be seriously harmed as a result of any of these risks. Risks Relating to and financial condition and Capital Requirements We have a limited operating history as a developer of acoustics high tech, AI multimodal digital and other products and services.
A failure by the beneficial owners of our shares who are PRC residents to comply with certain PRC foreign exchange regulations could restrict our ability to distribute profits, restrict our overseas and cross-border investment activities and subject us to liability under PRC law.
A failure by our PRC beneficial owners to comply with certain PRC foreign exchange regulations could restrict our ability to distribute profits, restrict our overseas and cross-border investment activities and subject us to liability under PRC law.
For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 34 and “VIE Agreements” on page 5. 54 We believe that our corporate structure and contractual arrangements comply with the current applicable PRC laws and regulations.
For a description of our corporate structure and contractual arrangements, see “Our Organizational Structure” on page 24 and “VIE Agreements” on page 3. 48 We believe that our corporate structure and contractual arrangements comply with the current applicable PRC laws and regulations.
In addition, if the imposition of any of these penalties or requirement to restructure our corporate structure causes us to lose the rights to direct the activities of the consolidated VIE or our right to receive their economic benefits, we would no longer be able to consolidate the financial results of such VIE in our consolidated financial statements, which may cause the value of our securities to significantly decline or even become worthless.
In addition, if the imposition of any of these penalties or requirement to restructure our corporate structure causes us to lose the rights to direct the activities of the consolidated VIE or our right to receive their economic benefits, we would no longer be able to consolidate the financial results of such VIE in our consolidated financial statements, which may cause the value of our securities to significantly decline or even become worthless. 49 We depend upon the VIE Agreements in conducting our business in the PRC, which may not be as effective as equity ownership.
While we intend to focus on managing our costs and expenses, over the long term, we also intend to invest in personnel and other resources related to our engineering, sales, service and marketing functions as we realign and dedicate resources to key growth areas, such as acoustics high tech , 5G AI multimodal digital and other products and services.
We intend to focus on managing our costs and expenses, over the long term, as well as to invest in personnel and other resources related to our R&D, sales, marketing and M&A functions as we realign and dedicate resources to key growth areas, such as acoustics high tech, AI multimodal digital and other products and services.
Rapid economic growth can lead to growth in the money supply and rising inflation. If prices for our services and products rise at a rate that is insufficient to compensate for the rise in the costs of supplies, it may have an adverse effect on profitability.
If prices for our services and products rise at a rate that is insufficient to compensate for the rise in the costs of supplies, it may have an adverse effect on profitability.
The shareholders of the VIE may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition. Ms. Zhixin Liu and Mr. Fu Liu are majority shareholders of Datasea and the shareholders of the VIE, Shuhai Beijing. Ms. Liu is our Chairman, Chief Executive Officer, President and Secretary, while Mr.
Ms. Zhixin Liu and Mr. Fu Liu are majority shareholders of Datasea and the shareholders of the VIE, Shuhai Beijing. Ms. Liu is our Chairman, Chief Executive Officer, President and Secretary, while Mr. Liu is one of our directors. They may have potential conflicts of interest with us.
In addition, appreciation or depreciation in the exchange rate of the Renminbi to the U.S. dollar could materially and adversely affect the price of shares of our common stock in U.S. dollars without giving effect to any underlying change in our business or results of operations. 59 Restrictions on currency exchange may limit our ability to receive and use our revenue effectively.
In addition, appreciation or depreciation in the exchange rate of the Renminbi to the U.S. dollar could materially and adversely affect the price of shares of our common stock in U.S. dollars without giving effect to any underlying change in our business or results of operations.
There can be no assurance that a change in leadership, social or political disruption, or unforeseen circumstances affecting the PRC’s political, economic or social life, will not affect the PRC government’s ability to continue to support and pursue these reforms.
There can be no assurance that a change in leadership, social or political disruption, or unforeseen circumstances affecting the PRC’s political, economic or social life, will not affect the PRC government’s ability to continue to support and pursue these reforms. Such a shift could have a material adverse effect on our business and prospects.
If any of the transactions entered into by the subsidiary and the PRC operating affiliate are found not to have been conducted on an arm’s length basis or to result in an unreasonable reduction in tax under PRC law, the PRC tax authorities have the authority to disallow tax savings, adjust the profits and losses of the respective PRC entities and assess late payment interest and penalties.
If any of the transactions entered into by the subsidiary and the PRC operating affiliate are found not to have been conducted on an arm’s length basis or to result in an unreasonable reduction in tax under PRC law, the PRC tax authorities have the authority to disallow tax savings, adjust the profits and losses of the respective PRC entities and assess late payment interest and penalties. 50 The shareholders of the VIE may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.
As such, we expect that we will need additional capital to fund our future growth. For the time being, we are primarily depending on contribution from shareholders, equity financing and cash income. If cash from such sources is insufficient or unavailable, or if cash is used for unanticipated needs, we may require additional capital sooner than anticipated.
For the time being, we are primarily dependent on contribution from shareholders, equity financing and cash income. If cash from such sources is insufficient or unavailable, or if cash is used for unanticipated needs, we may require additional capital sooner than anticipated.
If any of the affiliated entities undergoes a voluntary or involuntary liquidation proceeding, its equity owner or unrelated third-party creditors may claim rights relating to some or all of these assets, which would hinder our ability to operate our business and could materially and adversely affect our business, our ability to generate revenue and the market price of our common stock.
If any of the affiliated entities undergoes a voluntary or involuntary liquidation proceeding, its equity owner or unrelated third-party creditors may claim rights relating to some or all of these assets, which would hinder our ability to operate our business and could materially and adversely affect our business, our ability to generate revenue and the market price of our common stock. 51 Risks Associated With Doing Business in China Changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of our business.
Our limited operating history may not provide an adequate basis to judge our future prospects and results of operations. We have a limited operating history. The operating entity, Shuhai Beijing, was formed in February 2015 and may not generate material revenue or any profit in the foreseeable future.
Our limited operating history may not provide an adequate basis to evaluate our future prospects, financial performance, and results of operations. We have a limited operating history, Our operating entity, Shuhai Beijing, was formed in February 2015.
A slowdown or other adverse developments in the PRC economy may harm our customers and the demand for our services and our products. All of our operations are conducted in the PRC. Although the PRC economy has grown significantly in recent years, there is no assurance that this growth will continue.
Although the PRC economy has grown significantly in recent years, there is no assurance that this growth will continue. A slowdown in overall economic growth, an economic downturn, a recession or other adverse economic developments in the PRC could significantly reduce the demand for our products and services.
In addition, the following supply chain-related issues could adversely affect our customer relationships, operating results and financial condition: ● a reduction or interruption in supply of one or more components; ● a significant increase in the price of one or more components； ● a failure to adequately authorize procurement of inventory by our contract manufacturers; and ● a failure to appropriately cancel, reschedule or adjust our requirements based on our business needs. 49 Over the long term, we intend to invest in engineering, sales, service and marketing activities, and these investments may achieve delayed, or lower than expected, benefits which could harm our operating results.
In addition, the following supply-chain-related issues could adversely affect our customer relationships, operating results and financial condition: ● a reduction or interruption in supply of one or more components; 44 ● a significant increase in the price of one or more components； ● a failure to adequately authorize procurement of inventory by our contract manufacturers; and ● a failure to appropriately cancel, reschedule or adjust our requirements based on our business needs.
There can be no assurance that they will continue in their present capacities for any particular period of time. The loss of the services of Ms. Liu and/or Mr. Liu could materially and adversely affect our business development. The various industries we are in are characterized by constant and rapid technological change and evolving standards.
Liu have been instrumental in developing our business model and are crucial to our business development. There can be no assurance that they will continue in their present capacities for any particular period of time. The loss of the services of Ms. Liu and/or Mr. Liu could materially and adversely affect our business development.
Our management has assessed the effectiveness of our internal control over financial reporting with an assessment report as of June 30, 2024, and plans to shorten the cycle and increase the frequency concerning the testing cycle for the effectiveness of internal control measures. The annual risk control assessment reporting system will be improved to a quarterly risk control assessment system.
The Company plans to shorten the cycle and increase the frequency concerning the testing cycle for the effectiveness of internal control measures. The annual risk control assessment reporting system will be improved to a quarterly risk control assessment system.
In addition, certain acquisitions of domestic companies by offshore companies that are related to or affiliated with the same entities or individuals of the domestic companies, are subject to approval by the MOFCOM.
For example, the MOFCOM must be notified in the event a foreign investor takes control of a PRC domestic enterprise. In addition, certain acquisitions of domestic companies by offshore companies that are related to or affiliated with the same entities or individuals of the domestic companies, are subject to approval by the MOFCOM.
The following reliance issues could have an adverse impact on the supply of our products and on our business and operating results: ● Any financial problems of our contract manufacturers or component suppliers could limit supply or increase costs; ● Reservation of manufacturing capacity at our contract manufacturers by other companies, inside or outside of our industry, could limit supply or increase costs; and ● Industry consolidation occurring within one or more component supplier markets could limit supply or increase costs.
However, such reliance may result in increased costs or delays in fulfilling orders, which could adversely affect our business and operating results. ● Any financial problems of our contract manufacturers or component suppliers could limit supply or increase costs; ● Reservation of manufacturing capacity at our contract manufacturers by other companies, inside or outside of our industry, could limit supply or increase costs; and ● Industry consolidation occurring within one or more component supplier markets could limit supply or increase costs.
In particular, our success depends on the continued efforts of Ms. Zhixin Liu, our Chairman of the Board of Directors, Chief Executive Officer, President and Corporate Secretary, and Mr. Fu Liu, one of our directors and Ms. Liu’s father. Ms. Liu and Mr. Liu have been instrumental in developing our business model and are crucial to our business development.
Our success depends largely on the continued services of our key management and technical staff. In particular, our success depends on the continued efforts of Ms. Zhixin Liu, our Chairman of the Board of Directors, Chief Executive Officer, President and Corporate Secretary, and Mr. Fu Liu, one of our directors and Ms. Liu’s father. Ms. Liu and Mr.
If no improvement measures are taken, or if we experience additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
If we fail to have effective controls and procedures for financial reporting in place, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
An inability to cure a product defect could result in the failure of a product line, temporary or permanent withdrawal from a product or market, damage to our reputation, additional inventory costs, or product reengineering expenses, any of which could have a material adverse impact on our revenue, margins and net income. 50 We will likely have to incur indebtedness or issue new equity securities to fund future growth.
An inability to cure a product defect could result in the failure of a product line, temporary or permanent withdrawal from a product or market, damage to our reputation, additional inventory costs, or product reengineering expenses, any of which could have a material adverse impact on our revenue, margins and net income. 45 Our success depends on retaining key personnel who would be difficult to replace.
No assurance can be given that we will generate sufficient revenue or obtain the necessary financing to continue as a going concern and the failure to do so could cause us to cease our operations. 48 Supply chain issues that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could adversely affect our gross margins.
Risks Related to Our Business, Industry and Business Operations Supply chain issues that increase our costs or cause a delay in our ability to fulfill orders, could have an adverse impact on our business and operating results, and our failure to estimate customer demand properly may result in excess or obsolete component supply, which could adversely affect our gross margins.
Companies operating within these industries are continuously developing new products and services with heightened performance and functionality, putting pricing pressure on existing products. Accordingly, we believe that our future success will depend on our ability to continue to anticipate technological changes and to offer additional product and service opportunities that meet evolving standards on a timely and cost-effective basis.
Accordingly, we believe that our future success will depend on our ability to continue to anticipate technological changes and to offer additional product and service opportunities that meet evolving standards on a timely and cost-effective basis.
If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected. Our business requires significant levels of capital to finance the research and development of new products and service platforms that meet the constantly evolving industry standards and consumer demands.
If we are not able to obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected.
Shuhai Beijing may, from time to time, be subject to restrictions on its ability to make distributions to us, including restrictions on the conversion of RMB into U.S. dollars or other hard currency and other regulatory restrictions.
Shuhai Beijing may, from time to time, be subject to restrictions on its ability to make distributions to us, including restrictions on the conversion of RMB into U.S. dollars or other hard currency and other regulatory restrictions. 64 Nevada law and provisions in our articles of incorporation and bylaws could make a merger, tender offer or proxy contest difficult, thereby depressing the market price of our common stock.
Such a shift could have a material adverse effect on our business and prospects. 60 Certain PRC regulations, including the M&A Rules and national security regulations, may require a complicated review and approval process which could make it more difficult for us to pursue growth through acquisitions in China.
Certain PRC regulations, including the M&A Rules and national security regulations, may require a complicated review and approval process which could make it more difficult for us to pursue growth through acquisitions in China. The M&A Rules established additional procedures and requirements that could make merger and acquisition activities in China by foreign investors more time-consuming and complex.
In light of the various requirements imposed by PRC regulations on loans to and direct investment in PRC entities by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis. 61 We must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely manner.
Such regulatory requirements may continue to delay or restrict our ability to provide funding to our PRC subsidiaries and affiliated entities, which could adversely affect our liquidity and our ability to expand our business. 55 We must remit offering proceeds to China in a future securities issuance before they may be used to benefit our business in China, the process of which may be time-consuming, and we cannot assure that we can complete all necessary governmental registration processes in a timely manner.
On October 23, 2019, the SAFE promulgated the Notice of the State Administration of Foreign Exchange on Further Promoting the Convenience of Cross-border Trade and Investment, or the SAFE Circular 28, which, among other things, allows all foreign-invested companies to use Renminbi converted from foreign currency-denominated capital for equity investments in China, as long as the equity investment is genuine, does not violate applicable laws, and does not violate with the negative list on foreign investment.
On October 23, 2019, the State Administration of Foreign Exchange (“SAFE”) promulgated the Notice on Further Promoting the Facilitation of Cross-border Trade and Investment (“Circular 28”), which allows all foreign-invested enterprises to convert foreign currency-denominated capital into Renminbi for use in domestic equity investments, provided that such investments are genuine, compliant with applicable laws, and do not fall within the prohibited categories of the negative list for foreign investment.
Our limited history may not provide a meaningful basis for investors to evaluate our business, financial performance and prospects. Our independent registered public accounting firm’s auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern. We are an early and development stage company and have limited financial resources.
Our independent registered public accounting firm’s auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern.
If we fail to anticipate and adapt to these changes and evolutions, our sales, gross margins and profitability will be adversely affected. Technologies change rapidly in the acoustics high tech, 5G AI multimodal digital industries with frequent new products and service developments and evolving industry standards.
The various industries we are in are characterized by constant and rapid technological change and evolving standards. If we fail to anticipate and adapt to these changes and evolutions, our sales, gross margins and profitability will be adversely affected.
Our business substantially depends upon the continued growth of acoustics high tech , 5G AI multimodal digital and other products and services, the decrease of which could have a negative impact on our business.
If we do not achieve the benefits anticipated from these investments, or if the achievement of these benefits is delayed, our operating results may be adversely affected. Our business operations substantially depend upon the continued growth of acoustics high tech, AI multimodal digital and other products and services, the decrease of which could have a negative impact on our business.
We are a “controlled company” within the meaning of the NASDAQ Stock Market Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies. We are a “controlled company” as defined under the NASDAQ Stock Market Rules because Mr. Liu and Ms.
Compliance with these requirements may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise. 63 We are a “controlled company” within the meaning of the NASDAQ Stock Market Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies.
As a public company, we are facing with expensive, complicated and evolving disclosure, governance and compliance laws, regulations and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act and the Dodd–Frank Wall Street Reform and Consumer Protection Act.
As a public company, our directors and senior management have been learning and adapting to disclosure, corporate governance, and other compliance-related laws and regulations, including but not limited to the Sarbanes–Oxley Act (SOX) and the Dodd–Frank Wall Street Reform and Consumer Protection Act.
Moreover, our ability to comply with all applicable laws, rules and regulations is uncertain given our management’s relative inexperience with operating U.S. public companies.
We also may be subject to investigation by the SEC and civil or criminal sanctions. Our compliance with complicated U.S. regulations concerning corporate governance and public disclosure will result in additional expenses. Moreover, our ability to comply with all applicable laws, rules and regulations is uncertain given our management’s relative inexperience with operating U.S. public companies.
If we fail to successfully develop and offer our products and services in an increasingly competitive market, we may not be able to capture the potential growth opportunities associated with our products and services or recover our development and marketing costs, and our future results of operations and growth strategies could be adversely affected.
If we fail to continue to develop new products to meet customer demand in an increasingly competitive environment, we may lose business opportunities and may be unable to recover our research and development and marketing costs, which could adversely affect our future operating results and growth strategies.
As a result, you will not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of the NASDAQ Stock Market. 57 Risks Associated With Doing Business in China Changes in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the profitability of our business.
As a result, you will not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of the NASDAQ Stock Market. FINRA sales practice requirements may also limit your ability to buy and sell shares of our common stock, which could depress the price of shares of our common stock.
As a result, our efforts to comply with evolving laws, regulations and standards of a U.S. public company are likely to continue to result in increased general and administrative expenses and a diversion of management time and attention from revenue-generating activities to compliance activities.
Consequently, our efforts to comply with the evolving legal and regulatory framework applicable to U.S. public companies are expected to continue to increase our general and administrative expenses and divert management’s time and attention away from revenue-generating activities toward compliance-related matters.
Our resources and source of funds have primarily consisted of loans and capital contributions from shareholders and funds raised from equity financing. We believe these are sufficient to keep our business operations functioning for the next twelve months.
Our resources and source of funds have primarily consisted of loans and capital contributions from shareholders and funds raised from equity financing. While the Company believes in the viability of its strategy and in its ability to raise additional funds, there can be no assurances to that effect.
Currently, we do not own or operate our manufacturing facilities, but rely on third-party contractors to manufacture our products, and expect that we will continue to rely on existing and new contractual manufacturers for the foreseeable future.
We do not own or operate our own manufacturing facilities and instead rely on third-party contract manufacturers to produce our products. Under current conditions, this cooperative model is the best option for the Company to save costs and reduce investment risks.
A slowdown in overall economic growth, an economic downturn, a recession or other adverse economic developments in the PRC could significantly reduce the demand for our products and services. If relations between the United States and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease .
International tariff and rising threats of international tariffs, including tariffs applied to goods between the U.S. and China, may materially and adversely affect our business and financial results. If relations between the United States and China worsen, investors may be unwilling to hold or buy our stock and our stock price may decrease .
Any political or trade controversies between the United States and China, whether or not directly related to our business, could reduce the price of our common stock. Future inflation in China may inhibit the profitability of our business in China. In recent years, the Chinese economy has experienced periods of rapid expansion and high rates of inflation.
In recent years, the Chinese economy has experienced periods of rapid expansion and high rates of inflation. Rapid economic growth can lead to growth in the money supply and rising inflation.
Removed
We are still in the process of developing, marketing and expansion of our business. We expect that our acoustics high tech (including ultrasound, infrasound, directional sound, and Schumann resonance), 5G AI multimodal digital and other products and services will be our core business in the future.
Added
We have limited experience and operating history in developing and marketing our products and services and particularly as a developer of acoustics high-tech AI multimodal digital products and services, which are highly competitive business areas. Our limited history may not provide a meaningful basis for investors to evaluate our business, financial performance, and prospects.
Removed
We have limited experience and operating history in developing and marketing our products and services. In addition, the market for our products and services is highly competitive.
Added
Although our revenues have grown significantly in fiscal years 2024 and 2025 — in particular, in fiscal year 2025 we generated revenue of $71,616,820, representing an increase of $47,640,953, or 198.70%, compared to the same period of the prior year, and our gross profit increased by $1,969,843, or 415.49%, compared to the same period of the prior year, we continue to incur recurring losses from operations. .
Removed
We had cash balances of $19,728 and $181,261 as of June 30, 2023, and June 30, 2024, respectively. We generated revenues of $23,975,867 during the year ended June 30, 2024. We had a net cash inflow of $161,534 during fiscal year ended June 30, 2024.
Added
The accompanying consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent upon its ability to improve profitability and the ability to acquire funding in the future.
Removed
We have generated revenue of $23,975,867 from our business during the year ended June 30, 2024, and our expenses will be accrued until sufficient financing is obtained or bank loan us the necessary funds to pay for these expenses. 47 On August 1, 2023, the “Company entered into two separate subscription agreements with a certain non-U.S. investor (“Investor A”), pursuant to which the Company agreed to sell and Investor A agreed to purchase an aggregate of 4,760,000 shares of common stock price at a $1.2 per share purchase price.
Added
For the fiscal years ended June 30, 2025 and 2024, the Company had a net loss of approximately $5.09 million and $11.38 million, respectively.
Removed
Such shares must be held for a period of 365 days. In accordance with such two agreements and a subsequent supplementary agreement, Investor A shall pay a total purchase price of $5,712,000 in RMB, at an amount of RMB 40,000,000, no later than September 30, 2023. On September 21, the Company has received all of the payment of RMB 40,000,000.
Added
The Company had an accumulated deficit of approximately $44.53 million as of June 30, 2025, and negative cash flow from operating activities of approximately $2.37 million and $6.40 million for the years ended June 30, 2025 and 2024, respectively. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.
Removed
On August 15, 2023, Datasea Inc. (the “Company”) entered into a subscription agreement with a non-U.S. investor (the “Investor B”), pursuant to which the Company agreed to sell and Investor B agreed to purchase an aggregate of 2,962,963 shares of common stock at a $1.35 per share purchase price, with a total subscription price of $4,000,000.
Added
Although for the fiscal year 2025, the Company’s revenue significantly increased, and the recurring operating losses has narrowed, there can be no assurance the Company will become profitable or obtain necessary financing for its business and investments or that it will be able to continue in business and investments.
Removed
Such shares must be held for a period of 180 days. On August 16, 2023, the investor made the initial investment payment of RMB 5,000,000 to the Company, equal to $714,286.
Added
As a result of these factors, there is substantial doubt about our ability to continue as a going concern. 43 We anticipate to incur indebtedness or issue new equity securities to fund future growth. If we cannot obtain additional capital, our ability to operate or expand our business may be impaired and our results of operations could be adversely affected.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company and its employees are also required to sign confidentiality agreements for purposes including ensuring cybersecurity. As of the date of this report, we are not aware of any material risks from cybersecurity threats, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition.
Biggest changeThe Company and its employees are also required to sign confidentiality agreements for purposes including ensuring cybersecurity. As of the date of this Annual Report, we are not aware of any material risks from cybersecurity threats, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations, or financial condition.
Item 1C. Cybersecurity. Our cybersecurity measure is primarily focused on ensuring the security and protection of computer systems and networks. All pertinent domestic operating entities of the Company shall adhere to a standardized Company Confidentiality System, which shall be centrally overseen and enforced by Shuhai Beijing, subject to oversight by our management and Board of Directors.
Item 1C. Cybersecurity. Our cybersecurity measure is primarily focused on ensuring the security and protection of computer systems and networks. All pertinent Chinese operating entities of the Company shall adhere to a standardized Company Confidentiality System, which shall be centrally overseen and enforced by Shuhai Beijing, subject to oversight by our management and Board of Directors.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe lease office space of approximately 2,007.46 square meters from Beijing Kaipeng Technology Co., Ltd. for our headquarters in Beijing under a lease agreement. Our monthly rent is approximately $33,100 (RMB225,922.89). The lease agreement expired on October 7, 2022, we received a six-month rent free (two months for each year) discount.
Biggest changeThe rental expense for this office location was $6,983 and $39,657 (without rent reduction occurred on September 10, 2024), respectively, for the years ended June 30, 2025 and 2024. We lease office space of approximately 2,007.46 square meters from Beijing Kaipeng Technology Co., Ltd. for our headquarters in Beijing under a lease agreement. Our monthly rent is approximately $33,100 (RMB225,922.89).
The lease space is 553.11 square meters, On February 8, 2023, Shuhai Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., Ltd. for a leased area of 391.06 square meters at a monthly rent of RMB 44,011.00 (US $6,342).
The lease space is 553.11 square meters, On February 8, 2023, Shuhai Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., Ltd. for a leased area of 391.06 square meters at a monthly rent of RMB 44,011.00 (US $6,342). The lease period is from February 8, 2023 to November 7, 2023.
The lease period is from 8 February 2023 to 7 November 2023.Then the agreement was renewed again from Nov 8, 2023 to Dec 7, 2024,the annual rental is RMB 208,301.15 (USD 29,227.86),which include rental free from Nov 8 2024 to Dec 7 2024. The lease Space is 159.50 square meters.
This agreement was renewed again from November 8, 2023 to December 7, 2024, the annual rental is RMB 208,301.15 (USD 29,227.86), which include rental free from November 8, 2024 to December 7, 2024. The lease Space is 159.50 square meters.
The monthly rent is RMB 63,703 (US $9,179).After that the agreement was renewed again from Nov 8, 2023 to Dec 7, 2024,the annual rental is RMB 722,341.30 (USD 101,355.63),which include rental free from Nov 8 2024 to Dec 7 2024.
After that the agreement was renewed again from November 8, 2023 to December 7, 2024, the annual rental is RMB 722,341.30 (USD 101,355.63), which include rental free from Nov 8, 2024 to December 7, 2024.
On October 8, 2022, Tianjin Information Sea Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., LTD. The lease area is 566.04 square meters, and the lease period is from October 8, 2022 to November 07, 2023.
The lease area is 566.04 square meters, and the lease period is from October 8, 2022 to November 07, 2023. The monthly rent is RMB 63,703 (US $9,179).
On Nov 10 2023, Guohao Century (Beijing) Technology Co., Ltd terminated the agreement with Hangzhou Lanxin Real Estate Co., LTD On August 16 2024, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a leasing agreement with Shenzhen Xunmei Technology Co., LTD.
From March 1, 2027 to May 31, 2027, the rent that Shuhai Beijng should pay during this period is RMB 81,635.04 yuan. 65 On August 16 2024, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a leasing agreement with Shenzhen Xunmei Technology Co., LTD.
Removed
Item 2. Description of Property. We currently do not own any real estate or land use rights. In August 2019, we moved our headquarters from 1 Xinghuo Rd. Changning Building, Suite 11D2E, Fengtai District, Beijing, China, to 20th Floor, Tower B, Guorui Plaza, 1 Ronghua South Road, Technological Development Zone, Beijing, PRC.
Added
Item 2. Description of Property. We currently do not own any real estate or land use rights.
Removed
We also lease a small office in Harbin for Harbin Information’s operation under a lease that expires on April 30, 2020, as amended on May 1, 2019. We pay an annual rent of approximately $2,930 for this space.
Added
In March 2025, we moved our headquarters from 20th Floor, Tower B, Guorui Plaza, 1 Ronghua South Road, Technological Development Zone, Beijing to Room 302-5, Building C, Gemdale Viseen International Center, No. 5 Shengfang Road, Daxing District, Beijing, China, On November 29, 2024, Shuhai Beijing signed an office lease agreement with Beijing Gemdale Viseen Commercial Management Co., LTD.
Removed
This lease agreement was renewed for one year on May 1, 2020 and l expired April 30, 2021, with an annual rent at approximately $10,665.68. Due to the business expansion of the Company, a new office was rented on October 1, 2019 to support operation of Heilongjiang Xungrui Technology Co., Ltd.
Added
This office located at Room 302-5, Building C, Gemdale Viseen International Center, No. 5 Shengfang Road, Daxing District, Beijing, with a construction area of 503.92 square meters. The lease term is from March 1, 2025 to February 29, 2028, totaling three years. The monthly rental is RMB 81 yuan per square meter, and the monthly rent is RMB 40,817.52 yuan.
Removed
The lease term is from October 1, 2019 to September 30, 2021 and the annual rent is approximately $23,293.85. The agreement was renewed for 7 months from October 1, 2021 to April 30, 2022 and monthly rental is RMB13,500 (US $2,090.72), and the total rent is RMB94,500 (US $14,635.05).
Added
During the lease term, the rent discounts are as follows:From March 1, 2025 to May 31, 2025, the rent that Shuhai Beijing should pay during this period is RMB 40,817.52 yuan. From March 1, 2026 to May 31, 2026, the rent that Shuhai Beijing should pay during this period is RMB 81,635.04 yuan.
Removed
Then the agreement was renewed again from May 1, 2022 to April 30, 2023, the monthly rental is RMB19,642.5 (US $3,042) and the annual rental is RMB235,710 (US $36,504).
Added
On September 10, 2024, the Company signed a rent reduction agreement with the Company’s CEO, reducing the annual rent for the period from May 1, 2022, to April 30, 2025, to RMB 50,000 ($7,026), The Company is required to pay the rent before April 30, 2025.
Removed
Heilongjiang Xungrui renewed the lease agreement, the lease term is one year, the lease area is 218.25 square meters.the agreement was renewed from May 1, 2023 to April 30, 2024, the monthly rental is RMB23,571 (US $3,396) and the annual rental is RMB282,852 (US $40,756).Then the agreement was renewed again from May 1, 2024 to April 30, 2025,the annual rental is still RMB 282,852.00 (USD 39,688.50 ） .
Added
On June 24, 2025, the Company paid all the outstanding rents up to April 30, 2025 to the CEO. On May 1, 2025, Xunrui entered a new one-year lease agreement for this office location with the Company’s CEO for an annual rent of RMB 50,000 ($6,983), the Company is required to pay the rent before April 30, 2026.
Removed
We believe the rented space is sufficient for our current operations. 71 Tianjin Information Sea Information Technology Co., Ltd. signed a lease contract with Shenzhen Lvjing Real Estate Development Co., Ltd. on August 11, 2020.
Added
The lease agreement expired on October 7, 2022, we received a six-month rent free (two months for each year) discount. On October 8, 2022, Tianjin Information Sea Information Technology Co.Ltd. signed a lease contract with Beijing Kaipeng Technology Development Co., LTD.
Removed
The building covers an area of 395.15 square meters and will be leased from August 8, 2020 to August 7, 2023 with a three months and ten days’ rent-free period. The monthly rent is approximately $29,851.22 (RMB 209,910.80). The rental will be increased by 3% per year from the second year on the basis of the previous year’s rental standard.
Removed
On August 7, 2023, Tianjin Information Sea Information Technology Co., Ltd. and Shenzhen Lvjing Real Estate Development Co., Ltd. terminated the lease agreement. Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. signed a lease contract with Shenzhen Hongfa real estate development Co., LTD. on August 15, 2023.
Removed
The building covers an area of 321.87 square meters and will be leased from August 15, 2023 to August14, 2024 with a one month rent-free period. The monthly rent is approximately $6,493.05 (RMB 45,061.80). On August 14,2024, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. Terminated the lease contract with Shenzhen Hongfa real estate development Co., LTD.
Removed
Tianjin Information Sea Information Technology Co., Ltd. signed a house lease contract with Hangzhou Zhexin Information Technology Co., Ltd. on August 26, 2020. The house is located at Room 902-910, No.2 West Building, Xixi Yintai Commercial Center, Xihu District, Hangzhou, with a construction area of 1149 square meters.
Removed
The lease term starts from September 11, 2020 to October 5, 2022, with a 25-day rent-free period. The rental for the first year rental is RMB 3.3/m 2 / day, and the total rental is RMB 1,383,970.50, equivalent to $207,000.
Removed
The rental for the second year is RMB 3.4 yuan/m 2 / day, with a total rental of RMB1,425,909, equivalent to $202,777.20. The house security deposit is RMB 115,311. On January 14, 2021, Tianjin Information Sea Information Technology Co., Ltd./Hangzhou Zhexin Information Technology Co., Ltd.
Removed
And Hangzhou Zhangxun Information Technology Co., LTD signed a tripartite agreement and agreed that all rights and obligations of Tianjin Information Sea Information Technology Co., Ltd under original contract was assigned to Hangzhou Zhangxun Information Technology Co., LTD.
Removed
The cost of the rental place to produce it, Including but not limited to rent, water, electricity, and property fees are all paid by Hangzhou Zhangxun Information Technology Co., LTD. On September 12, 2022, Hangzhou Zhangxun Information Technology Co., LTD and Hangzhou Zhexin Information Technology Co., Ltd. changed the house lease contract. The lease area is 1,066 square meters.
Removed
The lease term is from October 6, 2022 to October 5, 2023, and the monthly rent is RMB 98,205.25 (US $14,150). The annual rent is RMB1,178,463 (US $169,807.35).
Removed
On December 2, 2022, Hangzhou Zhangxun Information Technology Co., LTD and Hangzhou Zhexin Information Technology Co., Ltd. changed the house lease contract again, the lease area is 83 square meters, the lease term is from January 1, 2023 to October 5, 2023, a total of 278 days, the rent is 3.3 yuan/square meter/day.
Removed
The total rental cost is RMB 76,144.20 (US $10,971.78). Due to changes in office requirements, the above two lease agreements were terminated with Hangzhou Zhexin Information Technology Co., LTD on May 5, 2023. On April 29, 2023, Guohao Century (Beijing) Technology Co., Ltd.signed a lease contract with Hangzhou Lanxin Real Estate Co., LTD.
Removed
The lease area is 279.43 square meters, the lease period is from May 10, 2023 to May 9, 2025, and the monthly rent is RMB 15,908.88 (US $2,292).

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeNo director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company with reference to pending litigation. Item 4.
Biggest changeThere are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company.
Removed
Item 3. Legal Proceedings. Neither we nor our subsidiaries are a party to any material pending legal proceedings.
Added
The Company’s property is not the subject of any pending legal proceedings.
Removed
However, from time to time, we and our subsidiaries may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business and an adverse result in these or other matters may arise from time to time that may harm our business.
Removed
Mine Safety Disclosures. Not applicable. 72 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+14 added−2 removed7 unchanged
Biggest changeSecurities Authorized for Issuance under Equity Compensation Plan On August 22, 2018, our Board of Directors and stockholders adopted the 2018 Equity Incentive Plan, or the 2018 Plan, to award up to a maximum of 4,000,000 shares of our common stock, to attract and retain the best available personnel, provide additional incentives to employees, directors and consultants and promote the success of our business.
Biggest changeThe 2018 Plan was initially adopted by our Board of Directors and stockholders on August 22, 2018 to attract and retain the best available personnel, provide additional incentives to employees, directors and consultants and promote the success of our business.
We have not made any repurchases of the equity securities of Datasea for the period covered by this report. Holder We had 103 holders of record of our common stock as of September 24, 2024. Dividends We do not anticipate paying dividends on our common stock at any time in the foreseeable future.
We have not made any repurchases of the equity securities of Datasea for the period covered by this report. Holders We had 105 holders of record of our common stock as of September 24, 2025. Dividends We do not anticipate paying dividends on our common stock at any time in the foreseeable future.
If we or our subsidiaries and affiliates are unable to receive all of the revenues from our operations through the current contractual arrangements, we may be unable to pay dividends on our common stock.
If we or our subsidiaries and affiliates are unable to receive all of the revenues from our operations through the current contractual arrangements, we may be unable to pay dividends on our common stock. Securities Authorized for Issuance under Equity Compensation Plans. The Company has one (1) equity compensation plan – the 2018 Equity Incentive Plan (the “2018 Plan”).
On April 28, 2022, the stockholders of the Company approved an amendment to the Company’s 2018 Plan at to increase the number of shares of the Company’s common stock reserved for issuance under the 2018 Equity Incentive Plan from 14,000,000 shares of common stock to 24,000,000 shares of common stock.
On April 28, 2022 and June 20 2023, the stockholders of the Company approved amendments to the 2018 Plan, to increase the number of shares of the Company’s common stock reserved for issuance under the 2018 Plan to 933,333 and 1,600,000, respectively.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock started trading on the NASDAQ Capital Market under the symbol “DTSS” in 2018. Based on the records of our transfer agent, we had 5,154,778 shares of common stock issued and outstanding as of September 24, 2024.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock began trading on the NASDAQ Capital Market under the symbol “DTSS” on Dec 18 2018. The last reported sales price of our common stock on Nasdaq on September 23, 2025, was $ 2.30 per share.
Removed
Subsequently, the Company filed a registration statement on Form S-8 to register the shares underlying the 2018 Plan.
Added
Initially, the 2018 Plan authorized for issuance a maximum of 4,000,000 (pre-split) or 266,667 (post-split) shares of our common stock, subject to adjustments in the event of certain reorganizations, mergers, combinations, recapitalizations, share splits, share dividends, or other similar events which change the number or kind of shares outstanding.
Removed
On June 20, 2023, the stockholders of the Company approved a further amendment to the 2018 Plan to increase the number of shares of the Company’s common stock reserved for issuance under the 2018 Equity Incentive Plan from 14,000,000 shares of common stock to 24,000,000 shares of common stock. Item 6. [Reserved]
Added
On June 7, 2024, the stockholders of the Company approved an amendment (the “Amendment No.3”) to the 2018 Plan at the Company’s annual shareholder meeting, which increased the number of a maximum shares authorized for issuance under the 2018 Plan by an additional 1,000,000 shares, from 1,600,000 shares to 2,600,000 shares of common stock. 67 On May 3, 2024, the Company filed a Registration Statement on Form S-8 to register the offer and sale of 1,000,000 remaining shares of common stock available for issuance under the 2018 Plan as a result of the amendments thereto, On May 7, 2025, the stockholders of the Company approved a further amendment to the 2018 Plan, which increased the maximum number of shares of common stock authorized for issuance under the plan from 2,600,000 shares to 7,600,000 shares.
Added
As of the date of this Annual Report, approximately 5,944,150 shares of our common stock is reserved for issuance under the 2018 Plan. Below is the summary of the key provisions of the 2018 Plan : Types of Awards.
Added
The 2018 Plan permits the awards of options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards and/or performance compensation awards. Plan Administration. Our Board of Directors or a committee appointed by our Board of Directors will administer the 2018 Plan.
Added
Such plan administrator will determine the participants to receive awards, the type and number of awards to be granted to each participant, and the terms and conditions of each grant. Award Agreement.
Added
Awards granted under the 2018 Plan are evidenced by an award agreement that sets forth the terms, conditions and limitations for each award, which may include the term of the award, the provisions applicable in the event of the grantee’s employment or service terminates, and our authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind the award. Eligibility.
Added
We may grant awards to our employees, directors and consultants or prospective employees, directors, officers, consultants or advisors who have accepted offers of employment or consultancy from our company or our affiliates. Exercise of Options. The plan administrator determines the expiration date of each award.
Added
However, the term of any award may not exceed ten years from the date of a grant. If any such award is not exercised prior to expiration, the award will be deemed forfeited. Transfer Restrictions.
Added
Awards may not be transferred in any manner by the recipient other than by will or the laws of descent and distribution, except as otherwise provided by the plan administrator. Amendment and Termination of the 2018 Plan. Our Board of Directors has the authority to amend, alter, suspend, discontinue, or terminate the plan.
Added
However, no such action may adversely affect in any material way any awards previously granted unless agreed by the recipient.
Added
Recent Sales of Unregistered Securities Except as set forth below, there were no sales of common stock equity securities during the period covered by this Report that were not registered under the Securities Act and were not previously reported in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K filed by us.
Added
In June 2025, we issued an aggregate of 59,445 shares of common stock to Zhixin Liu and 45,408 shares of common stock to Fu Liu as compensation for unpaid salaries.
Added
In addition, in June 2025, we issued an aggregate of issued 369,403 shares of common stock to Fu Liu In August 2025, we issued an aggregate of 61,119 shares of common stock to Zhixin Liu and 47,193 shares of common stock to Fu Liu as stock compensation for unpaid salaries.
Added
Also, in August 2025, we issued an aggregate of 2,010 shares of common stock to Ms. Chen, a director, as compensation for the months of May through July, and 18,367 shares were issued as stock compensation to Mr. Chenyang Nie. 68 Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

55 edited+239 added−307 removed14 unchanged
Biggest changeThe increase in cash outflow was mainly due to 1) increased net loss by $1,689,744, 2) increased non-cash adjustments to net cash used in operating activities including i) gain on disposal of subsidiary by $833,546, ii) decrease of depreciation and amortization expense by $206,950, and iii) decreased operating lease expense by $452,727, but partly offset by increased stock compensation expense by $2,370,439, 3) increased cash outflow from changings in operating assets and liabilities, which included i) increased cash outflow on prepaid expenses and other current assets by $668,876, ii) increased cash outflow on accounts receivable by $701,833, iii) decreased cash inflow on accounts payable by $241,991, iv) decreased cash inflow on accrued expenses and other payables by $632,270, and v) increased cash outflow on unearned revenue by $826,433, which was partly offset by i) decreased cash outflow on payment on operating lease liabilities by $397,962, and ii) increased cash inflow on inventory by $137,995.
Biggest changeThe decrease in cash outflow was mainly due to (1) decreased cash outflow on prepaid expenses and other current assets by $1.69 million, (2) increased payment received from customers for unearned revenue by $573,635, and (3) decreased net loss by $6.30 million, with non-cash adjustments to net loss including gain on disposal of subsidiary by $833,546, depreciation and amortization by $644,784, loan forgiveness by shareholder by $105,356, and decreased stock compensation expense by $4,856,484, despite we had increased cash outflow on accounts payable by $1.25 million.
Cash Flow from Financing Activities Net cash provided by financing activities was $6,839,577 during the year ended June 30, 2024, which was the net proceeds from due to related parties of $360,804 and net proceeds from sale of our common stock through an equity financing of $8,061,286, which was partly offset by repayment of loan payables of $1,582,513.
Net cash provided by financing activities was $6,839,577 during the year ended June 30, 2024, which was the net proceeds from due to related parties of $360,804 and net proceeds from sale of our common stock through an equity financing of $8,061,286, which was partly offset by repayment of loan payables of $1,582,513.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Cautionary Note Regarding Forward-Looking Statements This report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Cautionary Note Regarding Forward-Looking Statements This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.
This quarter, the Company further segmented the market, planned eight regional headquarters, strengthened the collection control, and promoted the fund collection of contracted delivery projects, which led to the benign return of funds and had a far-reaching impact on the future. 100 Liquidity and Capital Resources Historically, we have funded our operations primarily through the sale of our common stock and shareholder loans.
This quarter, the Company further segmented the market, planned eight regional headquarters, strengthened the collection control, and promoted the fund collection of contracted delivery projects, which led to the benign return of funds and had a far-reaching impact on the future. 84 Liquidity and Capital Resources Historically, we have funded our operations primarily through the sale of our common stock and shareholder loans.
However, there is no assurance that the Company will be able to secure such additional working capital on commercially viable terms or at all.
However, there is no assurance that the Company will be able to secure additional working capital on commercially viable terms, or at all.
Significant Accounting Policies Please refer to our significant accounting policies in Note 2 to our consolidated financial statements included in this report. 96 Results of Operations Comparison of the Years ended June 30, 2024 and 2023 The following table sets forth the results of our operations for the years ended June 30, 2024 and 2023, respectively, indicated as a percentage of net sales.
Significant Accounting Policies Please refer to our significant accounting policies in Note 2 to our consolidated financial statements included in this report. 80 Results of Operations Comparison of the years ended June 30, 2025, and 2024 The following table sets forth the results of our operations for the years ended June 30, 2025, and 2024, respectively, indicated as a percentage of net sales.
There can be no assurance the Company will become profitable or obtain necessary financing for its business and investments or that it will be able to continue in business and investments. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. As of June 30, 2024, the Company had cash of $181,262.
There can be no assurance the Company will become profitable or obtain necessary financing for its business and investments or that it will be able to continue in business and investments. The consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties. As of June 30, 2025, the Company had cash of $620,807.
Operating income increased by $20,335,177 over the same period of last year, an increase of 558.6% over the same period of last year, the main reason for the substantial growth is that the company locates currently in the 5G AI multi-model R&D technology which belongs to the industry leader, after long-term expansion of customer groups, the company has formed a stable customer group.
Operating income increased by $47,640,953 over the same period of last year, an increase of 198.70% over the same period of last year, the main reason for the substantial growth is that the company locates currently in the 5G AI multi-model R&D technology which belongs to the industry leader, after long-term expansion of customer groups, the company has formed a stable customer group.
Going Concern The accompanying unaudited consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the years ended June 30, 2024 and 2023, the Company had a net loss of approximately $11.38 million and $9.48 million, respectively.
Going Concern The accompanying consolidated financial statements were prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. For the years ending June 30, 2025 and 2024, the Company had a net loss of approximately $5.09 million and $11.38 million, respectively.
In order to maintain working capital sufficient to support our operations and finance the future growth of our business, we expect to fund any cash flow shortfall through financial support from our majority stockholders (who are also our board members or officers) and public or private issuance of securities.
To maintain sufficient working capital to support our operations and finance the future growth, we anticipate addressing any cash flow shortfall through financial support from our majority stockholders (who are also our board members or officers) and issuing securities public or private issuance of securities.
You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to several factors, including: ● uncertainties relating to our ability to establish and operate our business and generate revenue; ● uncertainties relating to general economic, political, and business conditions in China; ● industry trends and changes in demand for our products and service ； ● uncertainties relating to customer plans and commitments and the timing of orders received from customers; ● announcements or changes in our advertising model and related pricing policies or that of our competitors; ● unanticipated delays in the development, market acceptance, or installation of our products and services; ● changes in Chinese government regulations; and ● availability, terms and deployment of capital, relationships with third-party equipment suppliers Overview Company Structure Datasea Inc. is a technology company incorporated in Nevada, USA, on September 26, 2014, with subsidiaries and operating entities located in Delaware, US, and China.
You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to several factors, including: ● uncertainties relating to our ability to establish and operate our business and generate revenue; ● uncertainties relating to general economic, political, and business conditions in China; ● industry trends and changes in demand for our products and service； ● uncertainties relating to customer plans and commitments and the timing of orders received from customers; ● announcements or changes in our advertising model and related pricing policies or that of our competitors; ● unanticipated delays in the development, market acceptance, or installation of our products and services; ● changes in Chinese government regulations; and ● availability, terms and deployment of capital, relationships with third-party equipment suppliers 69 Overview and Recent Developments Datasea Inc.
The increase in cost of revenues was due mainly to the increased revenue of 5G AI multimodal digital. For the year ended June 30, 2024, the cost of 5G AI multimodal digital was $23.40 million, the cost of other services was $68,391, the cost of smart city was $30,928 and the cost of Acoustic Intelligence business was $2,345.
For the year ended June 30, 2024, the cost of 5G AI multimodal digital was $23.40 million, the cost of other services was $68,391, the cost of smart city was $30,928 and the cost of Acoustic Intelligence business was $2,345.
To enhance our ability to continue to operate as a going concern, we are dedicating resources to generate recurring revenues and sustainable operating cash flows. We expect to generate revenues through expanding our current 5G AI multimodal digital business and acoustic intelligence business, and through continuous product innovation and development as well as various types of value-added services.
To strengthen our ability to continue operating as a going concern, we are focusing on generating recurring revenues and sustainable operating cash flows. We expect to generate revenue through expanding our current 5G AI multimodal digital business and acoustic intelligence business, along with continuous product innovation and development as well as various types of value-added services.
This is closely related to the company’s technological research and development achievements over the years, personnel support, market promotion, the company’s upstream and downstream chain opening up, customer maintenance and technical experience accumulation, and eventually form a huge loyal customer base, but also closely related to the thriving vitality of the 5G AI multi-model business market.
This is closely related to the company’s technological research and development achievements over the years, personnel support, market promotion, the company’s upstream and downstream chain opening up, customer maintenance and technical experience accumulation, and eventually form a huge loyal customer base, but also closely related to the thriving vitality of the 5G AI multi-model business market.The company’s acoustic high-tech business segment has made significant progress and breakthroughs compared to the last fiscal year.
The Company had an accumulated deficit of approximately $39.44 million as of June 30, 2024, and negative cash flow from operating activities of approximately $6.40 million and $3.14 million for the years ended June 30, 2024 and 2023, respectively.
The Company had an accumulated deficit of approximately $44.53 million as of June 30, 2025, and negative cash flow from operating activities of approximately $2.37 million and $6.40 million for the years ended June 30, 2025 and 2024, respectively.
Through its own sales team, the Company vigorously promotes and publicizes the Company’s research and development results and technology display in 5G sales, actively participates in important seminars and business fairs around the country, and deeply explores the target customers related to 5G news. Through painstaking efforts and keen business acumen, we have obtained a stable customer flow.
Through its own sales team, the Company vigorously promotes and publicizes its research and development results and technology display in 5G sales, actively participates in important seminars and business fairs around the country and deeply explores the target customers related to 5G news.
We are treating human capital as a key indicator to drive business growth and technical innovation, also pursuing better integrated channels with related industries.。 Non-Operating Expenses, net Non-operating expenses were $95,918 for the year ended June 30, 2024, consisting mainly of interest income of $1,975 and other expenses of $97,893.
We are treating human capital as a key indicator to drive business growth and technical innovation, also pursuing better integrated channels with related industries. Non-Operating Income (Expenses), net Non-operating income was $75,185 for the year ended June 30, 2025, consisting mainly of interest income of $5,016 and other income of $70,169.
From July 1, 2023 to June 30, 2024, the Company generated revenue of $23,975,867, including $23,792,479 from the 5G AI multimodal digital business, $109,860 from Smart City Business, $3,988 from Acoustic Intelligence Business, $69,540 from other services.
From July 1, 2023 to June 30, 2024, the Company generated revenue of $23,975,867, including $23,971,879 from the 5G AI multimodal digital business, $3,988 from Acoustic Intelligence Business..
The revenue growth is primarily due to the rapid expansion of China’s 5G AI multimodal communication business, with Datasea’s 5G AI multimodal digital business maintaining a leadership position in the industry. The continuous growth of the customer base supports the company’s significant business expansion.
This revenue growth is primarily due to the rapid expansion of our 5G AI multimodal communication business in China, with the company’s 5G AI digital business maintaining a leading position in the industry. Our growing customer base continues to support substantial business growth.
An increase in capital reserves also increases net asset value per share and is a positive financial indicator for shareholders. This helps to enhance the investment confidence of shareholders and the market value of enterprises.
An increase in capital reserves also increases net asset value per share and is a positive financial indicator for shareholders. This helps to enhance the investment confidence of shareholders and the market value of enterprises. For the years ending June 30, 2025 and June 30, 2024, the outstanding bank loans were $2,374,767 and $1,170,298 respectively.
The following is a summary of cash provided by or used in each of the indicated types of activities during the years ended June 30, 2024 and 2023, respectively. 2024 2023 Net cash used in operating activities $ (6,398,883 ) $ (3,136,081 ) Net cash used in investing activities $ (167,957 ) $ (113,131 ) Net cash provided by financing activities $ 6,839,577 $ 3,109,207 Cash Flow from Operating Activities Net cash used in operating activities was $6,398,883 during the year ended June 30, 2024, compared to net cash used in operating activities of $3,136,081 during the year ended June 30, 2023, an increase in cash outflow of $3,262,802.
The following is a summary of cash provided by or used in each of the indicated types of activities during the years ended June 30, 2025 and 2024, respectively. 2025 2024 Net cash used in operating activities $ (2,374,680 ) $ (6,398,883 ) Net cash used in investing activities $ (4,085,197 ) $ (167,957 ) Net cash provided by financing activities $ 6,945,370 $ 6,839,577 Cash Flow from Operating Activities Net cash used in operating activities was $2,374,680 during the year ended June 30, 2025, compared to net cash used in operating activities of $6,398,883 during the year ended June 30, 2024, a decrease in cash outflow of $4,024,203.
(“Guozhong Haoze”) and Guozhong Times (Beijing) Technology Co., LTD. (“Guozhong Times”) entered into an agreement with Qingdao Ruizhiyixing Information Technology Co., LTD. (hereinafter referred to as “RuizhiYixing”).
(“Guozhong Haoze”), and Guozhong Times (Beijing) Technology Co., Ltd. (“Guozhong Times”) entered into an agreement with Qingdao Ruizhi Yixing Information Technology Co., Ltd. (“Ruizhi Yixing”).
Sustainable operation can help enterprises improve operating efficiency, enhance the competitiveness of enterprises, and enhance the market share of enterprises. Sustainable operation can help enterprises better control risks, reduce operating costs, and ensure the safety of enterprises Sustainable operation can help enterprises enhance their social image and enhance their sense of social responsibility.
Sustainable operation can help enterprises improve operating efficiency, enhance the competitiveness of enterprises, and enhance the market share of enterprises. Sustainable operation can help enterprises better control risks, reduce operating costs, and ensure the safety of enterprises. Sustainable operation can help enterprises better grasp market opportunities, grasp market trends, and achieve a win-win situation between enterprises and society.
As of June 30, 2024 and 2023, the capital reserve balance was $38,957,780 and $24,148,868, respectively, an increase of $14,808,912 from the beginning of the period or 61.32% from the beginning of the period, primarily due to an increase in the Company’s share issuance.
As of June 30, 2025 and 2024, the capital reserve balance was $47,331,510 and $38,957,780, respectively, an increase of $ 8,373,730 from the beginning of the period or 21.49% from the beginning of the period, primarily due to an increase in the Company’s share issuance.
As of June 30, 2023, we had a working capital deficit of $3,617,058 or a current ratio of 0.26:1. Our current assets were $1,289,517. We expect the Company to continue to support its ongoing operations and financing through revenue growth and increased financing activities.
As of June 30, 2024, our working capital deficit was $952,090, with a current ratio of 0.74:1, and current assets were $2,647,892. We expect the Company to continue supporting its ongoing operations and financing through revenue growth and increased financing activities.
For the year ended June 30, 2024, revenues mainly consisted of service fees from our 5G AI Multimodal digital. The company’s 5GAI multimodal digital business is an industry leader, and the continued expansion of the company’s customer base supports the continued significant improvement of the business.
The Company’s 5G AI multimodal digital business is an industry leader, and the continued expansion of the Company’s customer base supports the continued significant improvement of the business.
Cash Flow from Investing Activities Net cash used in investing activities totaled $167,957 for the year ended June 30, 2024, which consisted of cash paid for the acquisition of office furniture and equipment of $6,868, cash paid for acquisition of intangible assets by $161,054, and cash loss due to disposal of subsidiary of $35.
Cash Flow from Investing Activities Net cash used in investing activities totaled $4.09 million for the year ended June 30, 2025, which consisted of cash paid for the acquisition of office furniture and equipment of $8,129 and cash paid for acquisition of intangible assets by $4.08 million.
Net (Income) Loss from Discontinued Operation We generated net income from discontinued operation of $833,546 (which was the gain on disposal of Zhangxun), and net loss of $1,489,419 for the years ended June 30, 2024 and 2023, respectively.
Non-operating expenses were $95,918 for the year ended June 30, 2024, consisting mainly of interest income of $1,975 and other expenses of $97,893. Net (Income) Loss from Discontinued Operation We generated net income from discontinued operation of $833,546 (which was the gain on disposal of Zhangxun) for the year ended June 30, 2024.
Certain columns may not add up due to rounding. 2024 %of Revenues 2023 % of Revenues Revenues $ 23,975,867 $ 3,640,690 Cost of revenues 23,501,762 98.0 % 3,505,209 96.3 % Gross profit 474,105 2.0 % 135,481 3.7 % Selling expenses 3,279,627 13.7 % 372,639 10.2 % Research and development 359,342 1.5 % 569,635 15.6 % General and administrative expenses 8,960,523 37.4 % 7,377,421 202.6 % Total operating expenses 12,599,492 52.6 % 8,319,695 228.5 % Loss from operations (12,125,387 ) (50.6 )% (8,184,214 ) (224.8 )% Non-operating expenses, net (95,918 ) (0.4 )% (24,382 ) (0.7 )% Loss before income taxes (12,221,305 ) (51.0 )% (8,208,596 ) (225.5 )% Income tax expense - - % - % Loss before noncontrolling interest from continuing operation (12,221,305 ) (51.0 )% (8,208,596 ) (225.5 )% Income (loss) before noncontrolling interest from discontinued operation 833,546 3.5 % (1,489,419 ) (40.9 )% Less: loss attributable to noncontrolling interest from continuing operation (10,695 ) (0.04 )% (8,819 ) (0.2 )% Less: loss attributable noncontrolling interest from discontinued operation - - % (209,504 ) (5.8 )% Net loss to the Company from continuing operation (12,210,610 ) (50.9 )% (8,199,777 ) (225.2 )% Net income (loss) to the Company from discontinued operation 833,546 3.5 % (1,279,915 ) (35.2 )% Net loss to the Company $ (11,377,064 ) (47.5 )% (9,479,692 ) (260.4 )% Revenues We had revenues of $23,975,867 and $3,640,690 for the years ended June 30, 2024 and 2023, respectively, which shows a $20,335,177 increase by comparing with the same period of 2023,an increase of 558.6% over the same period last year.The increase in revenues was mainly due to the rapid increase of 5G AI multimodal digital business in China.
Certain columns may not add up due to rounding. 2025 % of Revenues 2024 % of Revenues Revenues $ 71,616,820 $ 23,975,867 Cost of revenues 69,172,872 96.6 % 23,501,762 98.0 % Gross profit 2,443,948 3.4 % 474,105 2.0 % Selling expenses 1,980,224 2.8 % 3,279,627 13.7 % Research and development 914,996 1.3 % 359,342 1.5 % General and administrative expenses 4,703,443 6.6 % 8,960,523 37.4 % Total operating expenses 7,598,663 10.6 % 12,599,492 52.6 % Loss from operations (5,154,715 ) (7.2 )% (12,125,387 ) (50.6 )% Non-operating income (expenses), net 75,185 0.1 % (95,918 ) (0.4 )% Loss before income taxes (5,079,530 ) (7.1 )% (12,221,305 ) (51.0 )% Income tax expense 6,596 0.01 % - % Loss before noncontrolling interest from continuing operation (5,086,126 ) (7.1 )% (12,221,305 ) (51.0 )% Income before noncontrolling interest from discontinued operation - - % 833,546 3.5 % Less: loss attributable to noncontrolling interest from continuing operation (432 ) (0.001 )% (10,695 ) (0.04 )% Net loss to the Company from continuing operation (5,085,694 ) (7.1 )% (12,210,610 ) (50.9 )% Net income (loss) to the Company from discontinued operation - - % 833,546 3.5 % Net loss to the Company $ (5,085,694 ) (7.1 )% (11,377,064 ) (47.5 )% Revenues We had revenues of $71,616,820 and $23,975,867 for the years ended June 30, 2025, and 2024, respectively, which shows a $47,640,953 or 198.7% increase as compared with the same period of 2024.
However, such additional cash resources may not be available to us on desirable terms, or at all, if and when needed by us. As of March 31, 2024, we had a working capital deficit of $952,090 or a current ratio of 0.74:1, and our current assets were $2,647,892.
However, such additional financial resources may not be available to us on favorable terms, or at all, if and when needed. As of June 30, 2025, we had a working capital deficit of $704,978 or a current ratio of 0.81:1, and current assets in the amount of $2,922,272.
The Company’s research and develop results include but are not limited to the following: As one of the leading service providers in China’s 5G AI multimodal digital field, Datasea has several primary products and services targeting different customers and needs, including: 5G AI multimodal new media marketing service platform,5G AI multimodal Smart Agriculture (Digital Rural) Service Platform, 5G AI multimodal platform for small and micro-enterprise services platform and 5G AI multimodal traffic top up platform. 5G AI multimodal digital business applications applicable to various industries in China, and payment system applications combined with artificial intelligence (AI), big prediction mode and data analysis capabilities. 99 Datasea has completed a revolutionary upgrade of its core 5G multimodal communication business with AI processing technology.
These include: ● 5G AI multimodal new media marketing service platform ● 5G AI multimodal Smart Agriculture (Digital Rural) Service Platform ● 5G AI multimodal platform for small and micro-enterprise services ● 5G AI multimodal traffic top-up platform These 5G AI multimodal digital business applications are designed for various industries in China, incorporating AI-driven payment system applications, big data analytics, and predictive models. ● Datasea has completed a revolutionary upgrade of its core 5G multimodal communication business with AI processing technology.
Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. 73 In some cases, you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “potential,” or the negative of these terms.
Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements.
The company combines basic acoustic theory with artificial intelligence, takes acoustic technology and acoustic effect as the technical system, and researches and applies non-audible mechanical wave effects to collect and process acoustic data and solve problems. Datasea utilizes cutting-edge technologies in the field of acoustic high technology and has the world’s leading acoustic equipment to acoustic algorithm models.
Combining basic acoustic theory with artificial intelligence, Datasea applies acoustic technology and the acoustic effect technical system to collect and process acoustic data. The Company utilizes non-audible mechanical wave effects to address various challenges. With world-leading acoustic equipment and algorithm models, Datasea’s acoustic technologies and products are widely used in sectors such as agriculture, industry, healthcare, and IoT technology.
We look forward to creating more value together with our customers and partners on a global scale, contributing to the progress of society and the well-being of mankind. 107 Off-Balance Sheet Arrangements There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
Off-Balance Sheet Arrangements There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources. 91 Critical Accounting Policies and Estimates Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements.
General and administration expenses increased $1,583,102, or 21.5% from $7,377,421 during the year ended June 30, 2023 to $8,960,523 during the year ended June 30, 2024.
General and administration expenses decreased $4,257,080, or 47.5% from $8,960,523 during the year ended June 30, 2024, to $4,703,443 during the year ended June 30, 2025.
These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management’s current expectations, which it believes are reasonable.
In some cases, you can identify forward-looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “potential,” or the negative of these terms. These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management’s current expectations, which it believes are reasonable.
We continue to bring in additional investors to support our company’s research and development, marketing and operations.
We will continue to bring in additional investors to support the Company’s research and development, marketing and operations. 79 Use multiple marketing channels to attract customers, enhance brand awareness and increase sales.
The increased demand for products and services brought about by the company’s increased sales revenue and the expansion of financing channels brought about by a number of capital inflows, the company to optimize the asset structure, enhance the corporate capital capacity and liquidity. 102 As of June 30, 2024 and 2023, the Company’s inventory balance was $153,583 and $241,380, respectively, a decrease of $87,797 or 36.37% from the beginning of the period, mainly because the Company realized the importance of inventory management and was screening inventory management software more suitable for enterprises.
The increased demand for products and services brought about by the company’s increased sales revenue and the expansion of financing channels brought about by a number of capital inflows, the company to optimize the asset structure, enhance the corporate capital capacity and liquidity.
Net Loss from continuing operation We generated net loss from continuing operation of $12,210,610 and $8,199,777 for the years ended June 30, 2024 and 2023, respectively, an $4,010,833 or 48.9% increase by comparing with the same period of 2023.
Net Loss from continuing operation We generated net loss from continuing operation of $5,085,694 and $12,210,610 for the years ended June 30, 2025, and 2024, respectively, a $7,124,916 or 58.4% decrease by comparing with the same period of 2024. The decrease in net loss was mainly due to increase in gross profit and decrease of operating expenses as explained above.
The increase in gross profit margin means that the company’s development and operation has great potential ability. As of June 30, 2024 and 2023, the Company’s cash balance was $181,262 and $19,728, respectively, an increase of $161,534, or 8.19 times, from the beginning of the period.
As of June 30, 2025 and 2024, the Company’s cash balance was $$620,807 and $181,262, respectively, an increase of $ 439,545, or 242.49%, from the beginning of the period.
In the same period last year, the operating revenue was $3,640,690, and the accounts receivable balance was $255,725 at June 30, 2023.
Accounts receivable The operating revenue of the year ended June 30, 2025, was $71,616,820, the balance of accounts receivable was $1,374,180 at June 30, 2025. In the same period last year, the operating revenue was $23,975,867, and the accounts receivable balance was $718,546 at June 30, 2024.
For the years ended June 30, 2024 and 2023, the Company’s gross profit was $474,105 and $135,481, respectively. Gross profit increased by $338,624 from the same period last year, an increase of 249.9% from the same period last year, and the current period increased market share and revenue significantly, so the gross margin increased simultaneously.
Gross profit increased by $1,969,843 from the same period last year, an increase of 415.49% from the same period last year, and the current period increased market share and revenue significantly, so the gross margin increased simultaneously. The increase in gross profit margin means that the company’s development and operation has great potential ability.
Selling, General and Administrative, and Research and Development Expenses Selling expenses were $3,279,627 and $372,639 for the years ended June 30, 2024 and 2023, respectively, representing an increase of $2,906,988 or 780.1%.
Selling, General and Administrative, and Research and Development Expenses Selling expenses for the year ended June 30, 2025 were $1,980,224, compared to $3,279,627 for the same period in 2024, reflecting a decrease of $1,299,403, or 39.6%.
Cost of Revenues We recorded $23,501,762 and $3,505,209 cost of revenues for the years ended June 30, 2024 and 2023, respectively, which shows a $19,996,553 increase by comparing with the same period of 2023. For the year ended June 30, 2024, cost of revenues was mainly the 5G AI multimodal digital platform fees and Cloud Platform construction to suppliers.
The cost of revenues for the year ended June 30, 2025, was primarily driven by 5G AI multimodal digital platform fees and cloud platform construction costs paid to suppliers. The increase in the cost of revenues was mainly due to the higher revenue generated from the 5G AI multimodal digital segment.
Through close business cooperation, the above customers have become stable and loyal partners of the Company, and will work together in the future. 97 In terms of marketing promotion, the Company has hired a professional cooperative marketing team to introduce and recruit suitable and high-quality stable customers for the Company.
Through close business cooperation, the above customers have become stable and loyal partners of the Company and will work together in the future. Since Q4 2023, the 5G Multimodal Communication business has demonstrated explosive growth, with Q2 2024 sales achieving a substantial improvement compared to the same period last year.
For the fiscal year ending June 30, 2024, our revenue was $23,975,867, reflecting a 558.6% increase compared to the same period in 2023. This revenue growth is primarily due to the rapid expansion of our 5G AI multimodal communication business in China, with the company’s 5G AI digital business maintaining a leading position in the industry.
From July 1, 2024 to June 30, 2025, the revenue reached USD69.44 million, an increase of USD49.89 million compared with USD19.55 million in the same period of 2024, with a growth rate of 255.20%. This revenue growth is mainly attributable to the rapid expansion of China’s 5G+AI multimodal digital business, which has maintained a leading position within the industry.
Gross Profit Gross profit for the year ended June 30, 2024 was $474,105 compared to $135,481 for the year ended June 30, 2023, which shows a $338,624 increase by comparing with the same period of last fiscal year. The increase in gross profit was mainly due to the increase in sales for the year ended June 30, 2024.
Gross Profit Gross profit for the year ended June 30, 2025, was $2,443,948 compared to $474,105 for the year ended June 30, 2024, representing an increase of $1,969,843. This increase in gross profit was primarily driven by higher sales during the year ended June 30, 2025.
In the field of acoustic high-tech business, the company is one of the units that proposed the concept of “acoustic effect” in the world, and exports acoustic high-tech products and solutions to the world.
This capability empowers numerous industries and clients by enhancing brand recognition, acquiring customers, promoting markets, and boosting revenue. 83 ● In the field of acoustic high-tech business, Datasea is one of the pioneers in introducing the concept of “acoustic effect” globally. The Company exports cutting-edge acoustic high-tech products and solutions worldwide.
(“Shuhai Beijing”), entered into an agreement with Shanghai Shixun Network Technology Co., LTD. (hereinafter referred to as “Shixun Network”). The agreement stipulates that the company will purchase 5G AI multimodal data cards of various denominations within 12 months after the agreement comes into effect, with prices ranging from 10 yuan to 500 yuan ($1.38 to $69.4).
On August 9, 2024, Shuhai Beijing signed an agreement with Shanghai Shixun Network Technology Co., Ltd. (“Shixun Network”), under which, for a 12-month period from the effective date, Shixun Network will purchase 5G+AI multimodal data cards with face values ranging from RMB 10 to RMB 500 (approximately USD 1.40 to USD 69.83).
The Company’s top five customers for 5G AI multimodal digital business at this stage are Xiamen Duoqiao Mai Network Technology Co., LTD., Hainuo Xintong (Qingdao) Network Technology Co., LTD., Qingdao Osaidi Network Technology Co., LTD., Qingdao Ruicheng Lida Network Technology Co., LTD., and Weihai Hongyun Shihao Information Technology Co., LTD..
Through painstaking efforts and keen business acumen, we have actually obtained a stable customer flow. 81 The Company’s top five customers for 5G AI multimodal digital business at this stage are Qingdao Ruizhi Yixing Information Technology Co., LTD., Shanghai Shixun Network Technology Co., LTD., Wuhan Xiaoming Technology Co., LTD., Xinyi Xinfanfa Information Technology Co., LTD., Nanjing Linghui Information Engineering Co., LTD.
Currently, it can achieve AI creation and generation of various information forms including sound, text, images, and videos, as well as efficient transmission and AI digital human marketing functions. This capability can empower numerous industries and clients with potent marketing and video matrix capabilities. It can contribute to clients in brand enhancement, customer acquisition, market promotion, and revenue uplift.
This upgrade enables the AI creation and generation of diverse forms of information, including sound, text, images, and videos. Additionally, it supports efficient transmission and AI-powered digital human marketing functions.
On August 1, 2023, the Company entered into two separate subscription agreements with a certain non-U.S. investor, pursuant to which the Company agreed to sell and the investor agreed to purchase an aggregate of 4,760,000 shares of common stock price at a $1.2 per share purchase price. Such shares must be held for a period of 365 days.
On October 3, 2024, Datasea entered into subscription agreements, with three non-U.S. investors, including Zhixin Liu, the Company’s Chairwoman of the Board, Chief Executive Officer, President and Secretary, and Fu Liu, a Director of the Company, pursuant to which the Company sold to investors an aggregate of 1,932,224 shares (of the Company’s Common Stock at the purchase price of approximately $4.0 million.
On April 4, 2024 , Company’s wholly-owned subsidiary, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. (“Shuhai Jingwei”), entered into a Sales Agreement (the “Agreement”) with Shenzhen Xiaoranfang Marketing Co., Ltd. (“Xiaoranfang Marketing”) for the sale of up to approximately $8.45 million (RMB 60 million) of the Company’s acoustic high tech products.
As of March 31, 2025, revenue from Beijing Meimei reached RMB 1,509,433.96 (equivalent USD 210,844). 77 On March 4, 2025, the Company’s wholly owned subsidiary, Shuhai Jingwei (Shenzhen) Information Technology Co., Ltd. (“Shuhai Jingwei”), signed an agreement with Tianjin Zhongzhi Times Technology Development Co., Ltd. (“Zhongzhi Times”) to acoustic high-tech products.
Gross margin is 2.0% and 3.7% for the years ended June 30, 2024 and 2023. The decrease in gross margin was mainly due to the lower gross profit margin of 5G AI multimodal digital service. Measures to improve the gross profit margin of enterprises: 1.
The increase in revenues was mainly due to the rapid increase of 5G AI multimodal digital business in China. For the year ended June 30, 2025, revenues mainly consisted of service fees from our 5G AI Multimodal digital.
To promote research and innovation in these areas, the Company actively collaborates with several prominent research institutions and universities, including Chinese Academy of Sciences Institute of Acoustics, China Academy of Information and Communications Technology Cloud Computing and Big Data Research Institute, Tsinghua University Internet Industry Research Institute, Harbin Institute of Technology Artificial Intelligence Research Institute, Beijing Union University, and Jilin University Remote Sensing Research Institute.
Industry-University-Research Collaborative Innovation : The Company has established joint laboratories with institutions such as Institute of Acoustics, Chinese Academy of Sciences , Internet Industry Research Institute, Tsinghua University , and Artificial Intelligence Research Institute, Harbin Institute of Technology , driving the rapid transformation of cutting-edge technologies through industrial research projects.
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The company provides acoustic business services (focusing on high-tech acoustic technologies and applications such as ultrasound, infrasound, and Schumann resonance), 5G application services (5G AI multimodal digital business), and other products and services to various corporate and individual customers. In the acoustic business sector, Datasea is a global pioneer of the “acoustic effect” concept.
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(“Datasea” or the “Company”, NASDAQ: DTSS) is a technology company incorporated under the laws of the State of Nevada on September 26, 2014, with subsidiaries and operating entities located in Delaware, USA, and China. Since its incorporation in 2014, Datasea has been committed to the exploration, application, and commercialization of cutting-edge technologies.
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Utilizing global leading “Acoustics + AI” precision manufacturing as the digital application framework, and leveraging sound wave technologies combined with acoustic effects as the technological system, the company outputs acoustic high-tech products and solutions worldwide. Datasea strives to be a leader in the development of China’s high-tech precision manufacturing in the acoustic industry.
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As a global high-tech company spanning both the Chinese and U.S. markets, Datasea’s business focuses on two main segments: Acoustic High-Tech and AI Multimodal Digitalization. Through continuous R&D investment, product innovation, and industrial collaboration, the company has gradually built a complete “technology – product – market” closed-loop system, achieving large-scale application and rapid growth in several industries.
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Our products have wide-ranging applications across various industries and sectors, including acoustic agriculture, acoustic industry, acoustic medicine, acoustic health, and acoustic IoT technologies. In the 5G application sector, Datasea provides digital and intelligent services to enterprises and individual users in China, leveraging AI, machine learning, and data analytic capabilities to offer a wide range of 5G application products and solutions.
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As a global high-tech company with deep integration of acoustics and artificial intelligence as the technological foundation, Datasea advances its dual-business engines of “Acoustic High-Tech + AI Multimodal Digitalization” to drive cross-industry applications.
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Our growing customer base continues to support substantial business growth. 74 Additionally, as of the date of September 20, 2024, the company has received approximately RMB 152.40 million (equivalent to $21.37 million) in cash prepayments from large customers of our 5G AI multimodal digital business.
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As one of the global proponents and industrial promoters of the “acoustic effect” concept, the Company leverages acoustic technology to establish unique technological barriers in five key fields—industrial, agricultural, healthcare, medical, and IoT—achieving full-chain value conversion from technological R&D to industry applications.
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These prepayments represent service obligations that have not yet been recognized as revenue for this fiscal year and will be recognized in future financial statements. The total value of contracts currently in execution, which will be recognized as revenue, exceeds $100 million.
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In the past fiscal years, as high-margin solutions from both segments have gradually scaled, Datasea has transitioned from “scale growth” to “quality improvement,” laying a solid foundation for long-term objectives and maximizing shareholder value.
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Datasea is not a Chinese operating company but a Nevada-based holding company with its Delaware subsidiary, Datasea Acoustics LLC, serving as our U.S.-based international business platform. Additionally, through the Company’s subsidiary in China – Tianjin Information Sea Information Technology Co., Ltd (“Shuhai Tianjin”) and the VIE, Shuhai Information Technology Co., Ltd.
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The Company operates in two core business segments: Acoustic High-Tech and AI Multimodal Digitalization In the Acoustic High-Tech field, the company focuses on the innovation of acoustic technology in multiple scenarios, with “non-hearable mechanical wave effects” as the R&D core.
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(“Shuhai Beijing”), we carry out business activities in China, along with their subsidiary entities. Shuhai Beijing possesses cutting-edge products and solutions in acoustics high tech and 5G AI multimodal digital applications to support commercial enterprises, households and individuals in China.
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In the environmental domain, the company has launched a series of acoustic environmental products to meet the purification needs of public and household settings; in the health domain, it has launched a series of acoustic medical and healthcare products, breaking through in areas such as neuro-regulation and acupoint stimulation, extending acoustic applications from environmental assistance to precise health management and clinical intervention.
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The development and internationalization of acoustic products, including acoustic industry, acoustic agriculture, acoustic medicine, and acoustic health, have always been a crucial strategy for the Company. Following the establishment of its wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware in July 2023, the Company has actively implemented its global strategy.
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In the industrial domain, the company explores the application of ultrasound in fields such as industrial precision processing, agricultural pest control, and agricultural product preservation, forming a cross-industry empowerment model of “acoustics + AI + vertical scenarios.” In the AI Multimodal Digitalization field, the company positions itself as a core service provider for the digitalization of the Chinese industry.
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As of the date of this report, the Company has partnered with several well-known U.S. online retailers and local smart product distributors, including iPower Inc. (NASDAQ: IPW) and Meglio Interiors LLC (“Meglio”), based in Chamblee, Georgia, to expand the online and physical store distribution of its acoustic-related products in the U.S.
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With its self-developed multimodal data processing platform, it achieves real-time collection, analysis, and generation of text, voice, image, video, and other data types.
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Additionally, in collaboration with the renowned U.S. intellectual property firm Paul & Paul, we are actively pursuing patent applications and acquiring high-quality patents to build a strong international intellectual property portfolio.
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The company focuses on the efficient and accurate matching of community services and consumer needs, offering full-spectrum services from standardized platform services (such as intelligent marketing, business process automation) to customized system solutions (such as full-process digital management for beauty salons, rural revitalization agricultural management platforms), helping customers optimize costs and improve efficiency.
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Focusing on the core area of acoustic high-tech, we are seeking potential merger and acquisition targets in acoustic industry applications, acoustic agriculture, acoustic medical aesthetics, acoustic health, and acoustic IoT technologies. This is part of our strategy for international expansion through mergers and acquisitions.
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Substantially all business operations of the Company are in China and the United States, and the Company also continuing to expand its business operations in other countries.
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On October 16, 2023, the Company’s Delaware-based subsidiary, Datasea Acoustics LLC, signed a marketing promotion and sales cooperation agreement with Meglio to develop, promote, and distribute itsacoustics high tech products in the U.S. On April 19, 2024, the Company entered into a Framework Agreement with iPower Inc.
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In China, the Company has established a research, production, and sales network through entities such as Shuhai Tianjin and Shuhai Beijing, focusing on application of Acoustic markets in healthcare, medical aesthetics, industrial, and agricultural sectors.
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(NASDAQ: IPW) for product cooperation, marking the beginning of a joint effort to enhance product distribution in the U.S. online market. Datasea provides digital and intelligent services to enterprises and individual users in China through a series of 5G multimodal services and solutions, utilizing its AI, large models, and data analytics capabilities.

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