Zhixin Technology Reports $2.36M Gross Profit in 1H26
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
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Should l Buy DTSS?
Reports 2H26 gross profit $2.36M vs.$0.61M in the same period last year, representing an increase of $1.75M, or 284.4% year-over-year. Zhixin Liu, CEO, commented, "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...At the same time, we are advancing our acoustic high-tech initiatives designed to extend our technology leadership and future growth. Our R&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."
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About DTSS
Datasea Inc is a China-based company principally engaged in the development of digital intelligence technology. The Company's main business is the provision of comprehensive software and hardware solutions for customers in the fields of fifth generation (5G) communication, acoustic intelligence, and smart city management. The Company's main products include 5G technology message marketing cloud platform (5G MMCP), 5G technology comprehensive message marketing cloud platform (5G IMMCP), Smart Push and other information services. The Company also produces ultrasonic sound sterilization and antivirus equipment and smart city systems. The Company mainly conducts its business in the domestic market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Architectural Breakthrough: Datasea has achieved a foundational research breakthrough in ultrasonic-enhanced nanoscale precision control technology, marking a significant advancement in the company's technical architecture, which is expected to enhance its competitiveness in advanced semiconductor manufacturing.
- System Integration Innovation: By systematically integrating ultrasonic enhancement mechanisms with ultra-precision composite manufacturing processes, Datasea is constructing a precision control architecture designed to meet the increasing complexity and stability requirements of future semiconductor manufacturing.
- Strengthened Strategic Positioning: This technological breakthrough not only enhances Datasea's strategic positioning in high-end industrial and advanced manufacturing sectors but also demonstrates the scalability of its core acoustic technology in higher-complexity industrial environments, broadening its potential application scope.
- Future Development Plans: Datasea plans to continue refining this engineering-level architecture through further validation and performance modeling, exploring potential research collaborations to advance the commercialization of its technology.
See More
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- Architectural Breakthrough: Datasea has achieved a foundational research breakthrough in ultrasonic-enhanced nanoscale precision control technology, marking the establishment of an engineering-level core technology architecture for semiconductor manufacturing applications, thereby enhancing its technical architecture and acoustic engineering capabilities.
- System Integration Innovation: By systematically integrating ultrasonic enhancement mechanisms with ultra-precision composite manufacturing processes, Datasea has constructed a systems-level precision control architecture designed to meet the increasing complexity, stability, and nanoscale accuracy requirements in advanced semiconductor process environments, reinforcing its strategic positioning in high-end industrial sectors.
- Market Expansion Potential: As semiconductor nodes shrink and process complexity increases, Datasea's expansion of ultrasonic precision control into higher-complexity industrial environments demonstrates the scalability of its acoustic technology architecture, further broadening the potential application scope.
- Management Outlook: CEO Zhixin Liu stated that this breakthrough not only elevates the foundational research level of the acoustic technology system but also lays the technical groundwork for future engineering validation and application scenario exploration, reflecting the company's long-term strategic positioning within advanced manufacturing ecosystems.
See More
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- Substantial Gross Profit Increase: Gross profit surged from $0.61 million in the same period last year to $2.36 million, an increase of $1.75 million, reflecting significant improvements in cost efficiencies and an optimized high-margin product mix.
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- Effective Strategic Shift: CEO Zhixin Liu noted that while revenue decreased due to a deliberate reduction in low-margin standardized services, the substantial growth in gross profit and margin underscores the effectiveness of the company's transition towards higher-quality revenue, with a continued focus on high-margin customized solutions.
- Advancement in Technology Innovation: Datasea is accelerating its 5G+AI multimodal digitalization business, emphasizing high-margin customized solutions while exploring the application potential of acoustic technologies in industrial and precision manufacturing to enhance its technological leadership and broaden market reach.
- Outlook for Future Growth: The company aims to further improve its profitability profile and establish a more resilient and sustainable foundation for long-term growth through disciplined execution and sustained technological innovation, ensuring its competitive edge in a challenging market.
See More
Datasea Reports 284.4% Increase in Gross Profit for Q2
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- Improved Gross Margin: The gross margin rose from 1.5% to 8.8%, primarily due to the company's strategic optimization of its revenue mix by reducing low-margin standardized services, thereby enhancing overall profitability.
- Effective Strategic Shift: The CEO noted that despite a 35.46% year-over-year revenue decline to approximately $26.81 million, the significant increase in both gross profit and margin underscores the effectiveness of the company's transition towards higher-quality revenue, with a continued focus on high-margin customized solutions.
- Advancement in Technological Innovation: Datasea is advancing its R&D in acoustic high-tech, exploring non-invasive acoustic medicine and brain-computer interface technologies, aiming to expand its market presence and strengthen its technological leadership, laying a solid foundation for future growth.
See More
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- Strategic Transition Progress: During the first half of FY2026, the company focused on profitability optimization rather than solely revenue growth, deepening the application of 5G+AI multimodal digital solutions and enhancing the contribution of technology-oriented products within its overall business mix.
- Core Technology Applications: Datasea has made phased progress in core acoustic technologies, steadily advancing product validation and deployment of non-invasive acoustic modulation and acoustic neuromodulation solutions in health management, laying the groundwork for future business expansion.
- Global Expansion Plans: The establishment of Datasea Acoustics LLC in Delaware in July 2023 marks the company's strategic entry into the U.S. market, further advancing its global expansion initiatives.
See More
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- Architectural Breakthrough: Datasea has achieved a foundational research breakthrough in ultrasonic-enhanced nanoscale precision control technology, marking a significant advancement in the company's technical architecture, which is expected to enhance its competitiveness in advanced semiconductor manufacturing.
- System Integration Innovation: By systematically integrating ultrasonic enhancement mechanisms with ultra-precision composite manufacturing processes, Datasea is constructing a precision control architecture designed to meet the increasing complexity and stability requirements of future semiconductor manufacturing.
- Strengthened Strategic Positioning: This technological breakthrough not only enhances Datasea's strategic positioning in high-end industrial and advanced manufacturing sectors but also demonstrates the scalability of its core acoustic technology in higher-complexity industrial environments, broadening its potential application scope.
- Future Development Plans: Datasea plans to continue refining this engineering-level architecture through further validation and performance modeling, exploring potential research collaborations to advance the commercialization of its technology.
See More
Datasea Achieves Breakthrough in Ultrasonic Precision Control Technology
- Architectural Breakthrough: Datasea has achieved a foundational research breakthrough in ultrasonic-enhanced nanoscale precision control technology, marking the establishment of an engineering-level core technology architecture for semiconductor manufacturing applications, thereby enhancing its technical architecture and acoustic engineering capabilities.
- System Integration Innovation: By systematically integrating ultrasonic enhancement mechanisms with ultra-precision composite manufacturing processes, Datasea has constructed a systems-level precision control architecture designed to meet the increasing complexity, stability, and nanoscale accuracy requirements in advanced semiconductor process environments, reinforcing its strategic positioning in high-end industrial sectors.
- Market Expansion Potential: As semiconductor nodes shrink and process complexity increases, Datasea's expansion of ultrasonic precision control into higher-complexity industrial environments demonstrates the scalability of its acoustic technology architecture, further broadening the potential application scope.
- Management Outlook: CEO Zhixin Liu stated that this breakthrough not only elevates the foundational research level of the acoustic technology system but also lays the technical groundwork for future engineering validation and application scenario exploration, reflecting the company's long-term strategic positioning within advanced manufacturing ecosystems.
See More
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- Significant Revenue Growth: Datasea's Q2 revenue reached $26.81 million, representing a 284.4% increase year-over-year, indicating strong market demand and the company's ability to expand in the 5G+AI multimodal solutions sector.
- Substantial Gross Profit Increase: Gross profit surged from $0.61 million in the same period last year to $2.36 million, an increase of $1.75 million, reflecting significant improvements in cost efficiencies and an optimized high-margin product mix.
- Improved Gross Margin: Gross margin rose to 8.8%, up from 1.5% year-over-year, primarily due to the optimized revenue mix from high-margin 5G+AI solutions, enhancing the company's profitability.
- Innovation-Driven Growth: The company's leadership in delivering innovative value-added 5G+AI multimodal solutions has driven both revenue and gross profit growth, indicating a sustained competitive advantage in the market.
See More
Datasea Reports 284.4% Increase in Gross Profit for Q2
- Significant Gross Profit Increase: Datasea reported a 284.4% year-over-year increase in gross profit for the first half of fiscal 2026, with gross margin rising 730 basis points to 8.8%, indicating successful optimization of its high-value business mix despite a decline in revenue.
- Effective Strategic Shift: CEO Zhixin Liu noted that while revenue decreased due to a deliberate reduction in low-margin standardized services, the substantial growth in gross profit and margin underscores the effectiveness of the company's transition towards higher-quality revenue, with a continued focus on high-margin customized solutions.
- Advancement in Technology Innovation: Datasea is accelerating its 5G+AI multimodal digitalization business, emphasizing high-margin customized solutions while exploring the application potential of acoustic technologies in industrial and precision manufacturing to enhance its technological leadership and broaden market reach.
- Outlook for Future Growth: The company aims to further improve its profitability profile and establish a more resilient and sustainable foundation for long-term growth through disciplined execution and sustained technological innovation, ensuring its competitive edge in a challenging market.
See More
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- Significant Gross Profit Growth: Datasea reported a gross profit of $2.36 million for the first half of fiscal 2026, a remarkable increase of 284.4% year-over-year from $0.61 million, indicating the company's successful pivot towards high-value, technology-driven business lines.
- Improved Gross Margin: The gross margin rose from 1.5% to 8.8%, primarily due to the company's strategic optimization of its revenue mix by reducing low-margin standardized services, thereby enhancing overall profitability.
- Effective Strategic Shift: The CEO noted that despite a 35.46% year-over-year revenue decline to approximately $26.81 million, the significant increase in both gross profit and margin underscores the effectiveness of the company's transition towards higher-quality revenue, with a continued focus on high-margin customized solutions.
- Advancement in Technological Innovation: Datasea is advancing its R&D in acoustic high-tech, exploring non-invasive acoustic medicine and brain-computer interface technologies, aiming to expand its market presence and strengthen its technological leadership, laying a solid foundation for future growth.
See More
Datasea Inc. Reports 278% Year-over-Year Gross Profit Increase in Q2
- Significant Profit Growth: Datasea achieved a 278% year-over-year increase in gross profit for Q2 FY2026, with gross margin rising to 8.7%, indicating substantial progress in its strategic shift towards high-value, technology-driven businesses that supports long-term sustainable development.
- Strategic Transition Progress: During the first half of FY2026, the company focused on profitability optimization rather than solely revenue growth, deepening the application of 5G+AI multimodal digital solutions and enhancing the contribution of technology-oriented products within its overall business mix.
- Core Technology Applications: Datasea has made phased progress in core acoustic technologies, steadily advancing product validation and deployment of non-invasive acoustic modulation and acoustic neuromodulation solutions in health management, laying the groundwork for future business expansion.
- Global Expansion Plans: The establishment of Datasea Acoustics LLC in Delaware in July 2023 marks the company's strategic entry into the U.S. market, further advancing its global expansion initiatives.
See More
