HANGZHOU, China, Aug. 26, 2026 (GLOBE NEWSWIRE) -- DSC Holdings Ltd. (“DSC” or the “Company”) (Nasdaq: DSC), the AI application infrastructure for China’s used car industry, today announced its unaudited financial results for the second quarter ended June 30, 2026.

• Second quarter revenue increased 3.7% year over year, while adjusted net loss (non-GAAP) narrowed by 61.5%, reflecting continued significant improvement in operating efficiency.
   
• GAAP net loss was RMB240.5 million (US$35.4 million), primarily reflecting the recognition of RMB227.8 million (US$33.6 million) in share-based compensation upon the completion of the IPO in June 2026 and IPO-related expenses.
  
  

1. Beginning with this Q2 2026 earnings release, the Company starts reporting certain operating metrics for its used car related operations in light of the overall evolution of its businesses. Please note that such used-car-only metrics should not be directly compared to historical operating metrics, which comprised different components. 
2. “Dealership MAU” refers to average monthly active dealership accounts, and “User MAU” refers to average monthly active individual user accounts. Both are measured by the number of unique mobile devices that have accessed DSC’s operating system at least once during a month, except that if a user uses multiple mobile devices to access DSC’s operating system during a given month, they will be counted as only one dealership or one user account.
3. “Monetized used car dealerships” refers to used car dealerships from whom DSC generates revenues by receiving a fee from either the dealership or its collaborator.
4. "ARPU of monetized used car dealerships" refers to the average revenue per monetized used car dealership, calculated by dividing the total revenue generated from monetized used car dealerships by the number of such dealerships during a given period.
5. “Monetized transaction services” refers to used car related transaction services that the Company generates revenues from, primarily B2B matching, used car inspection, car delivery and other B2B collaboration services. The Company also provides some transaction services to used car dealers free of charge.
6. “Average revenue per transaction service” refers to the average revenue generated per monetized transaction service, calculated by dividing the total revenue generated from monetized transaction services by the number of such services during a given period.

MANAGEMENT COMMENTS
Mr. Junhong Yao, founder, director and chief executive officer of DSC, commented: “The second quarter marked an important milestone for DSC with the completion of our Nasdaq IPO in June. Our operating performance remained resilient during the quarter, with DaFengChe maintaining broad, in-depth dealer engagement, our revenue growing year over year, and our losses narrowing significantly.”

“In the second quarter, we also made meaningful progress in AI-powered products and services. We developed several AI agents by training commoditized LLMs on our massive, granular, proprietary, real-time data, and deployed them into used car dealers’ daily workflows. Our market intelligence AI agents enabled dealers to make far better-informed purchasing and selling decisions, and have delivered tangible results for some of them. These early successes demonstrate the value that AI can create when applied to a conventional industry in the real economy. While creating value for dealers, these AI applications are also presenting a number of new monetization opportunities for DSC, which we are actively exploring and expect to test through selected trials in the near term," he added.

“At the same time, our Nasdaq listing has placed us on the global stage just as China's used-car exports are growing tremendously. We have begun to cautiously explore how our technological capabilities could support this rapidly expanding cross-border market.”

Ms. Qin Zou, director and chief financial officer of DSC, added: "We are pleased with our performance in the second quarter, with revenue growing 3.7% year over year, broadly in line with our expectations based on historical trends and industry seasonality. Notably, our adjusted net loss narrowed by 61.5% to RMB7.4 million, reflecting our unwavering focus on profitability.

AI has been a major factor in both reducing our operating expenses and opening up new monetization fronts. In the second quarter, we ran intensive company-wide campaigns to drive rapid AI adoption and make our organization operate leaner, faster and better. We have also moved quickly to integrate AI into our dealer-facing products and services, where we are beginning to see early revenues and will continue to explore their full monetization potential. Looking ahead, we remain focused on the quality of growth, expanding monetization across our dealer-centric ecosystem, particularly opportunities created by AI applications, and continuing to improve profitability."

FINANCIAL RESULT DETAILS
Revenue
Revenue increased 3.7% year over year to RMB167.0 million (US$24.6 million) in the second quarter of 2026, primarily due to certain customer engagement solution projects for OEMs being accepted and the related revenue recognized during the quarter, partially offset by lower revenue following the discontinuation of certain OEM-facing marketing services.

Cost of Revenue
Cost of revenue increased 15.0% to RMB108.0 million (US$15.9 million), primarily reflecting higher costs associated with the growth in customer engagement solutions.

Operating Expenses
Total operating expenses were RMB302.5 million (US$44.6 million), compared with RMB91.8 million in the same period of 2025, primarily due to the recognition of RMB227.8 million (US$33.6 million) in share-based compensation upon the completion of the IPO in June and IPO-related expenses. Excluding share-based compensation, general and administrative, sales and marketing, and research and development expenses declined 14.0%, 14.0% and 29.2% year over year, respectively, reflecting continued cost discipline and improved operating efficiency.

Net Loss and Adjusted Net Loss (Non-GAAP)
Net loss was RMB240.5 million (US$35.4 million), compared with RMB25.0 million in the same period of 2025, primarily due to share-based compensation and IPO-related expenses in the total amount of RMB227.8 million (US$33.6 million).

Adjusted net loss (non-GAAP) narrowed 61.5% to RMB7.4 million (US$1.1 million), reflecting continued improvement in operating efficiency.

Balance Sheet and Liquidity
Liquidity strengthened following the Company’s IPO in June 2026, with cash and cash equivalents reaching RMB451.3 million (US$66.5 million) as of June 30, 2026.

CONFERENCE CALL INFORMATION
The Company’s management will host two separate live video webcasts to discuss the financial results and recent business developments, with one session conducted in Chinese and the other in English. The Chinese- and English-language sessions will cover the same prepared content. To join the webcasts, participants must use the respective links below to complete an online registration process. Participants may join the session conducted in their preferred language.

Details of the live video webcasts are as follows:
Chinese Session
Date: August 26, 2026
Time: 5:00 A.M. Eastern Time (5:00 P.M. Beijing/Hong Kong Time on the same day)
Webcast link: https://us06web.zoom.us/webinar/register/WN_1ZVTr026QCWpjDgPQcYZyw

English Session
Date: August 26, 2026
Time: 8:00 A.M. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day)
Webcast link: https://us06web.zoom.us/webinar/register/WN_3w3A0GPFR0mrwkOWeHayGQ

The earnings release and related materials, including live and archived webcasts of both sessions, will be available on the Company's investor relations website at https://ir.dasouche.com.

ABOUT DSC
DSC is the AI application infrastructure for China’s used car industry. The Company has held over 90% market share in operating system for China’s used car dealers since 2021, according to China Insights Consultancy, giving it nation-wide dealer connection and massive, granular, proprietary, real-time industry data. Building on this digital foundation, DSC further supports used car dealers with essential transaction services across their workflows. DSC’s services also engage and benefit thousands of dealers’ collaborators, such as inspectors, transporters and other internet platforms, creating an ecosystem with used car dealers at its center.

SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.

USE OF NON-GAAP FINANCIAL MEASURES
The Company uses adjusted loss, which is a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that adjusted loss for the year provides useful information about its results of operations and enhances the overall understanding of its past performance and future prospects.

The Company defines non-GAAP financial measure by excluding the impact of share-based compensation expenses and amortization of intangible assets resulting from business combinations from the respective GAAP financial measure.

Adjusted loss should not be considered in isolation or construed as an alternative to loss from operations, net loss or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review adjusted loss for the year and the reconciliation to its most directly comparable U.S. GAAP measure. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the Company’s non-GAAP financial measure to its most comparable U.S. GAAP measure are included at the end of this press release.

EXCHANGE RATE
This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the noon buying rates of RMB6.7851 to US$1.00 in effect on June 30, 2026, as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to in this press release could have been converted into USD or RMB, as the case may be, at any particular rate or at all.

INVESTOR RELATIONS CONTACT

DSC IR Department
Email: ir@souche.com

The Blueshirt Group
Ms. Feifei Shen
Email: dsc@blueshirtgroup.co

(1)This represents amortization of intangible assets resulting from business combinations.