Business
Datasea Reports Second Quarter Fiscal Year 2023 Financial Results and Provides Business Updates
BEIJING, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) (“Datasea” or the “Company”), incorporated in Nevada in September 2014, is a digital
About this update from Datasea Intelligent Technology Ltd.
[{"type":"text","content":"BEIJING, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Datasea Inc. (NASDAQ: DTSS) (“Datasea” or the “Company”), incorporated in Nevada in September 2014, is a digital technology corporation engaged in three converging and innovative business segments: 5G messaging, acoustic intelligence, and smart city in China, today announced financial results for the quarter ended December 31, 2022, and provided an update on its key strategic and operational initiatives. “As we progressed through the second quarter, it became evident that the evolving Covid-19 pandemic and the changing prevention and control mechanisms would significantly impact our quarterly earnings and ability to fulfill customer orders, we also adjust our internal policy on 5G SMS business. Therefore, our second quarter revenue was not in-line with our expectations,” said Zhixin Liu, CEO of Datasea. “Fortunately, Datasea saw and continues to see demand, particularly for air purifiers. Furthermore, with the pace of China’s reopening after lifting the Zero-Covid policy, we do not expect similar levels of sequential declines beyond the second quarter of 2023. Moreover, we remain committed to enhancing our product portfolio, streamlining operational efficiencies, and expanding market reach and client acquisition.” Second Quarter 2023 Financial Results We had revenues of $425,710 and $8,979,479 for the three months ended December 31, 2022 and December 31, 2021 respectively, which shows a $8,553,769 or 95% decrease by comparing with the same period of 2021. The decrease in revenues was mainly due to the sharp decline in 5G SMS services in China amid the global COVID-19 pandemic. To mitigate operational risks and maintain control over cash flow, the Company implemented a revised business policy for 5G SMS services that involves collecting payment from clients in advance before making any purchases from suppliers. This approach will ensure that the Company's long-term operations can progress at a rapid and stable pace, while help minimizing financial risks. Gross profit was $54,330 for the three months ended December 31, 2022, compared to $246,299 for the three months ended December 31, 2021, representing a decrease of $191,969 or 78%. The decrease in gross profit was mainly due to the decreased delivery of services related to the 5G SMS service platform in 2022.Gross margin was 12.8% for t...