Datasea (DTSS) can be described with the following analogies:

• Palantir for Chinese smart cities
• A smaller IBM focused on smart city and 5G solutions in China

• AI-driven Security Solutions: Provides intelligent security platforms for smart campuses and communities, utilizing AI for monitoring, early warning, and management.
• AI-driven Health Management Solutions: Offers AI-powered platforms for health monitoring, elderly care, and smart healthcare services.
• 5G Multi-Dimensional Intelligent Perception Systems: Develops and deploys advanced smart city infrastructure, such as smart poles and sensor networks, leveraging 5G for urban management and public safety.

Datasea (NASDAQ: DTSS) primarily sells its products and services to other companies (B2B).

According to its public filings, Datasea does not have any single material customer, and its sales are not dependent on any one particular customer or a few customers. Instead, the company serves a diverse range of enterprise customers within China.

Based on Datasea's business segments (smart security, 5G messaging, and digital advertising), its major categories of business customers include:

• Small and Medium-sized Enterprises (SMEs): These businesses utilize Datasea's cloud-based 5G messaging services for interactive communication with their users, as well as its precise digital marketing solutions for advertising campaigns.
• Real Estate Developers and Property Management Companies: These entities implement Datasea's AI-powered smart security solutions for residential, commercial, and public properties, including smart communities, smart parks, and smart campuses.
• Government Agencies and Local Government Departments: Various government bodies employ Datasea's smart security and public safety solutions for applications in smart cities, smart scenic spots, and other public infrastructure projects.

Zhixin Liu, Chairman of the Board, Chief Executive Officer, President and Secretary
Ms. Liu has served as the Chairman, Chief Executive Officer, President, and Secretary of Datasea Inc. since October 29, 2015. She is also the founder of Datasea. Prior to founding Shuhai Beijing in February 2015, she was the General Manager of Harbin Jinfenglvyuan Bio-Technology Co., Ltd. from February 2012 to January 2015, where she oversaw the company's annual work plan, financial budget, profit distribution, and daily management. From January 2011 to February 2012, Ms. Liu was a board director at Beijing Jinyajianguo Refrigeration Plants Manufacturing Co., Ltd., a private company. She obtained an MBA from Universidad Rovira i Virgili Instituto de Gestión Empresarial y Management (IGEMA) in 2023. Ms. Liu directly owns 27.01% of Datasea's shares and has demonstrated her confidence in the company through her intent to purchase up to $3,000,000 of its common stock from her personal funds and her participation in a $4.0 million private offering.

Mingzhou Sun, Chief Financial Officer & Treasurer
Ms. Sun was appointed as Datasea's Chief Financial Officer on August 1, 2021, bringing over 20 years of experience in the accounting and auditing industry. Since September 2019, she has served as the company's accounting director, responsible for preparing financial documents for SEC filings. From March 2018 to September 2019, Ms. Sun was a partner at Beijing Mingye Accounting Firm, where she helped clients establish internal financial control systems, analyze tax policies, and issue tax reports. Her previous roles include Vice President and Chief Financial Officer at Sun Seven Star Investment Group from July 2012 to January 2018, and Chief Financial Officer at Golden State Holding Group (USA) from March 2008 to June 2011. She has also held positions as a financial director and manager at various other companies. Ms. Sun is a registered CPA and Certified Public Valuer in China and holds a Level 2 certificate of the Association of Chartered Certified Accountants. She earned her Bachelor's degree in Accounting from Renmin University of China in 1991.

Chunqi Jiao, Chief Technology Officer

Shaojie Wang, Director of Marketing

Hezhi Sun, Director of Capital

Datasea (DTSS) operates in two core business segments: Acoustic High-Tech and AI Multimodal Digitalization, with a focus on operations in China and the U.S.. The company also offers smart city solutions.

Addressable Markets for Datasea's Main Products or Services:

• 5G+AI Multimodal Digitalization / 5G AI Multimodal Communication:
  • The global 5G Short Messaging (Rich Communication Services - RCS) market, which encompasses messaging services offered by Datasea, was approximately USD 1.4 billion in 2024, is expected to rise to USD 1.63 billion in 2025, and is forecasted to reach USD 5.5 billion by 2033, expanding at a Compound Annual Growth Rate (CAGR) of approximately 16.3% during the period 2025-2033. Datasea's 5G business serves over 52 million small and micro enterprises and 124 million individual entrepreneurs in China.
• Acoustic High-Tech / Acoustic Intelligence:
  • The global acoustics high-tech market is projected to reach USD 23.7 billion by 2027.
  • Datasea's entry into acoustic wearable technology marks its participation in a market that has been referenced as a "$1 Trillion Market," referring to the broader global wearable technology market.
• Smart City Solutions:
  • The smart city market in China, where Datasea offers smart security solutions and other smart city technologies, is projected to reach USD 1,473.2 million by 2035, growing from USD 177.8 million in 2024, at a CAGR of 21.2% from 2025 to 2035. Another projection estimates the China smart cities market to generate USD 853.7 million by 2030 from USD 208.6 million in 2024, at a CAGR of 28.4% from 2025 to 2030.
  • Within the realm of smart city solutions, particularly public security solutions utilizing AI-driven analytics, the China AI in cybersecurity market generated a revenue of USD 2,961.9 million in 2024 and is expected to reach USD 16,301.8 million by 2030, with a CAGR of 32.9% from 2025 to 2030.

Datasea (DTSS) is expected to drive future revenue growth over the next two to three years through several key initiatives across its dual-engine business segments of AI multimodal digitalization and acoustic high-tech. The company nearly tripled its revenue in fiscal year 2025, reaching $71.62 million, and has provided guidance for a 275% revenue increase to $90 million for fiscal year 2025.

Here are the key drivers:

1. Expansion and Innovation in 5G AI Multimodal Digital Solutions: Datasea anticipates maintaining strong growth momentum in its 5G AI multimodal digital business, primarily within China. This will be driven by continued technological innovation, geographic expansion, and securing significant service contracts with major clients. The company is focused on providing standardized platform offerings and customized solutions for various industries, including SME services, digital rural platforms, and new media marketing systems. The number of core clients has increased, with several contributing over $10 million in annual revenue.
2. Growth and Market Penetration of Acoustic High-Tech Products and Comprehensive Solutions: A strategic shift from single hardware sales to higher-margin, comprehensive acoustic solutions is expected to drive revenue in this segment. Datasea is expanding its B2B sales network by deploying acoustic products into new markets, such as beauty and health stores. The company is also venturing into the wearable health tech market with new products like acoustic smart health shoes and advancing its research and development in "Acoustics + Neuro-Regulation."
3. Product Diversification and Enhanced Application Scenarios: Datasea plans to expand its market share by focusing on product diversification and advancing technology innovations across both its 5G AI multimodal digital and acoustic high-tech businesses. This involves developing a broader portfolio of offerings and exploring new application scenarios for its core technologies, particularly within growing sectors like smart security, smart cities, and digital marketing.

Share Issuance

• Datasea completed a 1-for-15 reverse stock split before market open on Tuesday, January 23, 2024.
• In August 2023, Datasea announced a private placement with an investor from China totaling $4 million, with shares priced at $1.35 each. This capital was designated for strategic expansion into the U.S. market and other corporate initiatives.
• In October 2024, Datasea closed a Regulation S offering, raising approximately $4.0 million by selling 1,932,224 shares at $2.06 per share to three investors, including its CEO and a Director. The proceeds are intended to support business operations, including investments in acoustic high-tech product design upgrades, working capital for mass production and online sales, intellectual property acquisition, and promotion of 5G AI multimodal digital business products.

Inbound Investments

• Datasea secured a $4 million private placement in August 2023 from a Chinese investor, with shares sold at a 125% premium to the market price.
• The company received approximately $4.0 million from a private offering in October 2024, with major shareholders, including the CEO and a Director, participating.