DSC Holdings reported a narrowed adjusted net loss of RMB 7.2 million in the second quarter of 2026, a 61.5% improvement from RMB 19.2 million a year earlier. The company’s GAAP net loss totaled RMB 240.5 million, primarily impacted by RMB 227.8 million in IPO-related share-based compensation and other expenses.
Revenue grew 3.7% year-over-year to RMB 148.3 million, driven by software services provided to original equipment manufacturers, though this was partly offset by the conclusion of certain OEM marketing services. Sequentially, revenue rose 14% from the first quarter of 2026. General and administrative expenses fell 14% year-over-year, while sales and marketing expenses declined 14% and research and development costs dropped 29%.
The company’s digital operating system, DaFengChe, continued to expand its AI capabilities. By the end of June 2026, over 4,100 dealerships were using AI-enabled assistants, with average daily token consumption exceeding 150 million. Digital employees deployed across the platform included more than 3,215 social media operations specialists and 295 management assistants. DSC also plans to introduce a platform-level AI agent in the coming months.
Dealership engagement metrics showed more than 65,000 monthly active users on the platform, while user monthly active users reached nearly 200,000. Over 9,000 used car dealerships generated revenue through the platform. Despite macroeconomic pressures, DSC’s infrastructure supports over 4,000 inspectors across 250 cities and 100 self-operated delivery warehouses spanning every province in China.
The used car industry in China faces persistent challenges, with industry estimates suggesting over 70% of dealers operated at a loss in the first half of 2026. Used car transaction volumes rose 1.5% year-over-year to a record 9.72 million units in the first half, while exports surged 61% over the same period. DSC’s market share in car delivery services remains above 90%, according to China Insights Consultancy.
Shares of DSC Holdings fell 1.88% in premarket trading to $8.36, following a 15.4% gain over the prior week. The stock has traded between $4.52 and $16.35 over the past 52 weeks. Analysts tracking the stock have set a price target of $12.09, implying a 42% upside potential.
