DSC Holdings (DSC) Registration filing summary

Company overview and business model

• Operates as the AI application infrastructure for China's used car industry, holding over 90% market share in dealer operating systems since at least 2021.

• Provides digitalization solutions and integrated transaction services to used car dealers, OEMs, authorized dealers, and new car brokers.

• Business model centers on a freemium SaaS platform (DaFengChe) for dealers, monetizing primarily through transaction services.

• AI agents are being piloted to support dealer procurement and sales, leveraging proprietary, granular industry data.

• All operations are based in China, with a focus on digital transformation and efficiency for auto merchants.

Financial performance and metrics

• Total revenues: RMB909.0M (2023), RMB948.2M (2024), RMB677.1M (2025); 2025 decline due to divestiture of financial product referral services.

• Net losses: RMB186.6M (2023), RMB157.1M (2024), RMB94.6M (2025); adjusted net losses also narrowed over the period.

• Gross margin improved to 38.5% in 2025 from 30.7% in 2024, mainly due to business mix shift.

• Cash and cash equivalents as of Dec 31, 2025: RMB178.9M (US$25.6M); net working capital: RMB173.9M (US$24.9M).

• ARPU for monetized dealers and brokers: RMB17,537 (2023), RMB17,304 (2024), RMB7,379 (2025); 2025 decrease due to business divestiture and user base growth.

Use of proceeds and capital allocation

• Estimated net proceeds from IPO: US$39.2M (or US$46.4M if over-allotment exercised).

• 60% allocated to enhancing digitalization solutions and expanding transaction services, 20% to AI and technology investment, 20% to general corporate purposes and working capital.