<div id="readability-page-1"><article><div>Gross Profit Increased 284.4% Year-over-Year and Gross Margin Increases 730 Basis Points to 8.8%, /PRNewswire/ -- Datasea Inc. (Nasdaq: DTSS) (&#34;Datasea&#34; or the &#34;Company&#34;), a Nevada-based technology enterprise engaged in acoustic technologies and 5G+AI multimodal digitalization, today announced its unaudited financial results for the second fiscal quarter and the six months ended December 31, 2025. Additional details will be available in the Company's Quarterly Report on Form 10-Q as filed with the SEC.<img src="https://imageproxy.pbkrs.com/https://mma.prnewswire.com/media/2163747/image_5029097_24577115_Logo.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="310" height="74" original-src="https://imageproxy.pbkrs.com/https://mma.prnewswire.com/media/2163747/image_5029097_24577115_Logo.jpg"/>Six Month Fiscal 2026 Highlights for the Period Ended December 31, 2025<ul type="disc"><li>Revenue: Approximately $26.81 million compared with $41.54 million for the same period last year, representing a decrease of $14.73 million, or 35.46%. This was primarily due to the Company's successful execution of its strategic plan to reduce its low-margin standardized services and optimize its revenue mix toward high-value, technology-driven business lines.</li><li>Gross Profit: $2.36 million, compared with $0.61 million in the same period last year, representing an increase of $1.75 million, or 284.4% year-over-year. This was driven by improved cost efficiencies and the Company's leadership in delivering innovative value-added 5G+AI multimodal solutions.</li><li>Gross Margin: 8.8%, compared with 1.5% in the same period last year, primarily as a result of an optimized revenue mix from high margin value-added 5G+AI multimodal solution.</li></ul>Management Commentary Ms. Zhixin Liu, Chief Executive Officer of Datasea, commented, &#34;The first half of fiscal 2026 reflects our continued execution of a strategic shift away from top-line growth toward higher-quality revenue and improved profitability. While revenue declined year-over-year as a result of our deliberate reduction of low-margin standardized services, both gross profit and gross margin expanded meaningfully, underscoring the effectiveness of our technology-driven, higher-value business mix.&#34;&#34;We continued to advance our 5G+AI multimodal digitalization business with a strategic focus on higher-margin, customized solutions and a more selective customer mix. Through ongoing optimization of our product and service structure, we believe this business segment will remain a key contributor to revenue stability and profitability going forward.&#34;&#34;At the same time, we are advancing our acoustic high-tech initiatives designed to extend our technology leadership and future growth. Our R&amp;D is increasingly centered on non-invasive acoustic medicine, brain–computer interface technologies, intelligent acoustic systems and health robotics. In parallel, we are exploring the technical capabilities and application potential of acoustic technologies in industrial and precision manufacturing environments. Collectively, these initiatives both augment and strengthen our core technology, and broaden our addressable markets, positioning the Company's for future growth beyond its current core businesses.&#34;Operational Highlights1. 5G+AI Multimodal Digital Business<ul type="disc"><li>Was the Company's primary revenue contributor during the six-month period.</li><li>Continued strategic emphasis on high-margin, customized AI multimodal solutions, including services for SMEs, digital marketing scenarios, and industry-specific applications.</li><li>Ongoing optimization of customer mix and service structure supported improved overall profitability and recurring revenue quality.</li></ul>2. Acoustic High-Tech Segment<ul type="disc"><li>Continued advancement of R&amp;D initiatives in acoustic medicine, brain–computer interface technologies, intelligent acoustic systems and health robotics, while expanding the exploration of engineering-level application scenarios and engineering validation pathways for acoustic technologies in industrial and precision manufacturing environments;</li><li>The acoustic business direction continues to evolve from single-product exploration toward integrated and system-level development, laying the foundation for subsequent technical validation, application expansion and potential commercialization.</li></ul>Business OutlookLooking ahead, Datasea will continue to advance its strategic priorities:<ul type="disc"><li>5G+AI Multimodal Digitalization: further enhancement of the Company's proprietary AI multimodal platform, expansion of high-margin customized solutions, and exploration of scalable and replicable service models to support stable and recurring cash flows.</li><li>Acoustic High-Tech Innovation: accelerated R&amp;D efforts in acoustic medicine, brain–computer interface technologies, intelligent systems and health robotics, while continuing to explore the technical capabilities and application potential of acoustic technologies in industrial and precision manufacturing application scenarios, with the objective of gradually building long-term, platform-based acoustic technology capabilities.</li></ul>Through disciplined execution and sustained technological innovation, Datasea aims to further improve its profitability profile, strengthen operational efficiency, and establish a more resilient and sustainable foundation for long-term growth.About Datasea Inc.Datasea Inc. (&#34;Datasea&#34;) is a leading provider of products, services, and solutions for enterprise and retail customers in two innovative industries, acoustic high tech and 5G-AI multimodal digitalization. The Company's advanced R&amp;D technology serves as the core infrastructure and backbone for its products. Its 5G multimodal digital segment operates on a cloud platform based on AI. Datasea leverages cutting-edge technologies, precision manufacturing, and ultrasonic, infrasound and directional sound technology in its acoustics business to combat viruses and prevent human infections, and it is also developing applications in medical ultrasonic cosmetology. In July 2023, Datasea established a wholly-owned subsidiary, Datasea Acoustics LLC, in Delaware, in a strategic move to enter the U.S. markets and to mark its global expansion plan. For additional information, please visit www.dataseainc.com.Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as &#34;will&#34;, &#34;expects&#34;, &#34;anticipates&#34;, &#34;future&#34;, &#34;intends&#34;, &#34;plans&#34;, &#34;believes&#34;, &#34;estimates&#34;, &#34;target&#34;, &#34;going forward&#34;, &#34;outlook,&#34; &#34;objective&#34; and similar terms. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and which are beyond Datasea's control, which may cause Datasea's actual results, performance or achievements (including the RMB/USD value of its anticipated benefit to Datasea as described herein) to differ materially and in an adverse manner from anticipated results contained or implied in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in Datasea's filings with the SEC, which are available at www.sec.gov. Datasea does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.Investor and Media Contact: Datasea Investor Relations Email: investorrelations@shuhaixinxi.com sunhezhi@shuhaixinxi.com Precept Investor Relations LLC David Rudnick +1 646-694-8538 david.rudnick@preceptir.comSOURCE Datasea Inc.</div></article></div>

DTSS

Datasea Inc. reported its second fiscal quarter results, showing a gross profit increase of 284.4% year-over-year, with a gross margin rise to 8.8%. Revenue for the six months ended December 31, 2025, was approximately $26.81 million, down 35.46% from the previous year due to a strategic shift towards high-value services. CEO Zhixin Liu emphasized the focus on higher-margin, customized solutions and ongoing R&D in acoustic technologies. The company aims to enhance profitability and operational efficiency while expanding its market presence in the U.S. and beyond.

Datasea Reports Second Fiscal Quarter 2026 Results | DTSS Stock News