Highlights

  • DSC Holdings increased second-quarter revenue by 3.7% to RMB 167.0 million in its first earnings release after listing.
  • The company reported RMB 227.8 million in share-based compensation and IPO-related expenses recognised during June 2026 alone.
  • Gross profit fell to RMB 59.0 million as cost of revenue increased 15%, despite the higher sales figure.
  • The adjusted net loss narrowed 61.5% to RMB 7.4 million, while management provided no financial guidance for investors.

Listing-related expenses dominated DSC Holdings (NASDAQ:DSC)'s first earnings report following its June 2026 market debut. The China-based software and transaction-services provider recorded modest revenue growth for the second quarter, but a substantially larger reported net loss. Its adjusted result improved, leaving investors with two distinct measures of performance as the business began reporting as a newly listed company.

Revenue Rises While Gross Profit Falls

For the quarter ended 30 June 2026, DSC reported unaudited revenue of RMB 167.0 million, equivalent to USD 24.6 million, compared with RMB 161.1 million a year earlier. The increase was 3.7%.

Gross profit declined to RMB 59.0 million from RMB 67.2 million as cost of revenue rose 15.0%. The figures show that modest sales growth did not prevent pressure on gross profitability.

Management attributed revenue growth mainly to accepted projects for original-equipment-manufacturer customers. The supplied document does not quantify those projects' contribution or separate it from the dealer business. The chief financial officer described revenue growth as broadly consistent with company expectations.

Listing Expenses Expand the Net Loss

The reported net loss widened to RMB 240.5 million, or USD 35.4 million, from RMB 25.0 million in the comparable quarter. DSC attributed the increase mainly to RMB 227.8 million of share-based compensation and IPO-related expenses recognised in June.

On an adjusted non-GAAP basis, the net loss narrowed 61.5% to RMB 7.4 million. That measure excludes specified items and does not replace the reported loss. The contrast is central to understanding a quarter affected by the listing.

Cash and cash equivalents stood at RMB 451.3 million, equivalent to USD 66.5 million, at 30 June. The company provided no financial guidance in the results release published on 26 August.

A Free Platform Supports Paid Services

DSC's flagship Da Feng Che platform combines enterprise-resource-planning, customer-relationship and inventory tools, largely free to dealers. Most revenue comes from transaction services, including vehicle sourcing, inspection, logistics and warehousing.

At the end of 2025, the company reported approximately 228,000 active users and 30,297 monetised dealers and brokers. The second-quarter release used a narrower definition, reporting 9,146 monetised used-car dealerships with average revenue per user of RMB 6,672.

It also reported 214,451 monetised transaction services averaging RMB 259 each. The company cautioned that these used-car-only metrics are not directly comparable with earlier periods, so the two sets of customer figures cannot establish a like-for-like trend.

The IPO Establishes a New Reporting Context

DSC priced 3 million American depositary shares at USD 17 each, the midpoint of its USD 16–18 offering range. Gross proceeds were approximately USD 51 million before costs. Trading began on 25 June 2026, with quotations expressed in US dollars per ADS.

The next operating comparison will need to distinguish listing-related expenses from the underlying cost base. Gross profit, OEM project contributions and the adjusted loss provide different views of that performance. No confirmed date for the next results announcement appears in the supplied material.