Datasea Inc. Issues Statement Regarding Recent Market Activity

Rhea-AI Summary

Datasea (NASDAQ: DTSS) issued a statement on Nov 18, 2025 addressing recent trading activity and reaffirming that operations remain normal and the company's business and financial position are solid.

The company reported Q1 2026 gross profit of USD 1.17 million, a 4.9x year-over-year increase, and a gross margin of 8.46%, which management says reflects a shift toward higher-margin, technology-driven solutions. Management said it is not aware of any undisclosed material information explaining recent share-price and volume fluctuations and is evaluating strategic measures to help the market better recognize the company’s value.

Datasea highlighted recent technological progress in acoustic technologies and brain–computer interface applications and reiterated that investor communications will be made through official SEC filings and authorized releases.

Positive

• Gross profit USD 1.17 million, up 4.9x YoY
• Gross margin improved to 8.46%

Negative

• Recent share-price and trading-volume fluctuations
• Management unable to identify a disclosed cause for recent market activity

News Market Reaction

+14.53%

7 alerts

+14.53% News Effect

+16.1% Peak in 24 hr 54 min

+$1M Valuation Impact

$12M Market Cap

1.3x Rel. Volume

On the day this news was published, DTSS gained 14.53%, reflecting a significant positive market reaction. Argus tracked a peak move of +16.1% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $1M to the company's valuation, bringing the market cap to $12M at that time.

Data tracked by StockTitan Argus on the day of publication.

BEIJING, Nov. 18, 2025 /PRNewswire/ -- Datasea Inc. (NASDAQ: DTSS) ("Datasea" or the "Company") ,a Nevada-based high-tech enterprise engaged in acoustic technologies and AI multimodal digitalization, today issues a brief statement regarding recent trading activity in its common stock.

The Company has observed fluctuations in its share price and trading volume over the past several days. Datasea emphasizes that operations remain normal, the Company's business and financial position are solid, and all core initiatives continue to progress as planned. Management is not aware of any undisclosed material information or corporate developments that would explain the recent market activity.

Last week, Datasea reported strong financial results for the first fiscal quarter of 2026, including gross profit of USD 1.17 million, up 4.9x year-over-year, and a gross margin improvement to 8.46%, reflecting the Company's successful shift toward high-margin, technology-driven solutions. We are actively evaluating a range of strategic measures to help the market better recognize the value created by our technology innovation, margin improvement, and expanding commercial opportunities. Our goal is to ensure that Datasea's market performance more accurately reflects its financial progress and future growth trajectory.

CEO Ms. Zhixin Liu stated, "We sincerely appreciate the continued trust and support from our investors. We remain confident that as Datasea executes its established strategies and advances its long-term development plans, the Company will achieve sustainable, high-quality growth. Most recently, we have achieved important technological breakthroughs in acoustic technologies and brain–computer interface applications, further strengthening our competitive advantages and future growth momentum. We look forward to advancing together with our shareholders to realize the full value and long-term potential of Datasea."

The Company reminds investors to rely solely on information issued through official SEC filings, press releases, and authorized public communications.

The Company will continue to provide timely updates on its business progress and maintain transparent communication with the market in accordance with applicable disclosure requirements.

About Datasea Inc.

Datasea Inc. ("Datasea") 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&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 "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook," "objective" 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.com

View original content:https://www.prnewswire.com/news-releases/datasea-inc-issues-statement-regarding-recent-market-activity-302618637.html

SOURCE Datasea Inc.

FAQ

What did Datasea (DTSS) say about the November 18, 2025 share-price fluctuations?

Datasea said operations remain normal, management is not aware of undisclosed material information, and it is evaluating strategic measures to improve market recognition.

What were Datasea's reported Q1 2026 results for DTSS?

Datasea reported Q1 2026 gross profit of USD 1.17M, a 4.9x YoY increase, and a gross margin of 8.46%.

Will Datasea (DTSS) disclose updates about the market activity?

Yes; the company said it will provide timely updates through SEC filings, press releases, and authorized communications.

Did Datasea (DTSS) announce any transactions or earnings guidance on Nov 18, 2025?

No; the statement confirmed normal operations and reported Q1 2026 results but did not announce new transactions or forward guidance.

What technology progress did Datasea (DTSS) mention in the Nov 18, 2025 statement?

The company referenced technological breakthroughs in acoustic technologies and brain–computer interface applications as strengthening its competitive position.

How should investors verify Datasea (DTSS) information after the Nov 18, 2025 notice?

Investors were reminded to rely on official SEC filings, company press releases, and authorized public communications for verified information.