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 transaction services to used car dealers, OEMs, authorized dealers, and new car brokers, creating an integrated ecosystem.

• Business model centers on offering core digital operating systems (DaFengChe) for free to drive adoption, monetizing primarily through transaction services.

• AI agents are being developed to support dealer procurement and sales, leveraging proprietary, granular, real-time 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 decrease due to divestiture of financial product referral services.

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

• Gross margin improved to 38.5% in 2025 after the divestiture of lower-margin financial product referral services.

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

• As of March 31, 2026: 135,636 active users, 13,869 monetized dealers and brokers, RMB146.6M in quarterly revenue.

Use of proceeds and capital allocation

• Net proceeds of ~$39.2M (or $46.4M if over-allotment exercised) expected.

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