Dasouche goes public on Nasdaq, becoming the first major Chinese technology company to list in the U.S. this year.

``` On June 25, digital auto circulation service provider DSC Holdings Ltd. (Da Sou Che) was officially listed on Nasdaq under the ticker “DSC”. According to the prospectus, DSC’s IPO was priced at $17 per ADS, with 3 million American Depositary Shares offered. Excluding the over-allotment option, the total funds raised amounted to approximately $51 million. In terms of offering structure, the prospectus shows that existing shareholder Ant Group subscribed to about $30 million worth, accounting for nearly 59% of the total funds raised. Deutsche Bank, CICC, and CR Global Markets served as joint bookrunners for this offering. On its first day of trading, DSC closed at $9.06, down about 46.7% from the IPO price of $17. The prospectus indicates that DSC’s core business is its SaaS operating system, positioning itself within the used car dealer network and gradually expanding into auto transaction facilitation, logistics, and financial services. Quoting data from third-party institution China Insights Consultancy, the prospectus states that since 2021, DSC's market share in China’s used car dealer operating system market has remained above 90%. As of January 2026, its system manages over 50% of the entire industry’s physical inventory of used cars daily, with a daily managed transaction amount exceeding RMB 1 billion. The system records more than 300 operational data dimensions for each dealership, and more than 70 data points for each used car. Regarding the use of proceeds, DSC plans to allocate about 60% to strengthen digital solutions and expand its transaction services network, about 20% to AI technology R&D, and the remaining 20% to working capital and general corporate purposes. Financially, the prospectus shows that DSC’s revenue in 2023, 2024, and 2025 was RMB 909 million, RMB 948 million, and RMB 677 million, respectively. Gross profit was RMB 306 million, RMB 291 million, and RMB 260 million respectively, with net losses of RMB 187 million, RMB 157 million, and RMB 94.56 million. The net cash flow used in operating activities was RMB 163 million, RMB 213 million, and RMB 90.37 million for 2023, 2024, and 2025, respectively. The financial statements reflect corresponding sales and administrative expenses resulting from maintaining a nationwide merchant network, R&D investment, and extending downstream into transaction segments. However, DSC’s current financials and business structure are situated within a period of adjustment for China’s auto circulation industry. In the terminal trading market, new car retail prices have fluctuated continuously over the past two years. According to publicly available information from the China Automobile Dealers Association, the downward trend in new car prices has also spread to the used car market, with the industry overall facing shorter used car value retention periods and slower dealership inventory turnover. Amid shrinking profit margins, automobile dealers have cut their budgets for SaaS and other IT tools, and now favor software tools that directly facilitate transactions or generate sales leads. In 2025, digital solutions contributed only about 15% of total revenue; the company’s main income source was transaction services, which have lower gross margins. This shift in market demand is an external factor causing volatility in third-party digital service providers’ main business income. Furthermore, the structure of auto circulation channels in China is also evolving. With the rising market share of new energy vehicles, some leading auto manufacturers are accelerating the development of direct sales and hybrid agency models. In this process, automakers are gradually integrating customer relationship management, order flow, and corresponding financial services into their proprietary digital systems. Third-party platforms extending upstream in the industry chain face challenges brought about by automakers’ adjustments to their channel strategies. In subsequent financial cycles, the main practical challenge for the company is how to adapt to changes in IT spending by end dealers while maintaining its current system market share, and how to achieve a balance in cash flow during the industry’s stock period. ``` Risk Disclosure and Disclaimer The market has risks; investments must be made with caution. This article does not constitute personal investment advice, nor does it take into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suited to their particular circumstances. If you invest based on this information, you do so at your own risk.