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Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<ul><li>The dominant dealer software platform in the world’s largest auto market.</li><li>DSC’s flagship platform, DaFengChe, has held more than 90% market share in operating systems for China’s used car dealers since at least 2021 and manages more than 50% of the country’s used car inventory by VIN, handling more than RMB1.0 billion (US$147.4M) of used car transaction value daily in January 2026, per China Insights Consultancy (CIC).</li><li>Most DaFengChe functionality is free. Its paid dealer subscriptions and additional OEM customer engagement projects generate a small share of revenue. </li></ul>

The dominant dealer software platform in the world’s largest auto market.DSC’s flagship platform, DaFengChe, has held more than 90% market share in operating systems for China’s used car dealers since at least 2021 and manages more than 50% of the country’s used car inventory by VIN, handling more than RMB1.0 billion (US$147.4M) of used car transaction value daily in January 2026, per China Insights Consultancy (CIC).Most DaFengChe functionality is free. Its paid dealer subscriptions and additional OEM customer engagement projects generate a small share of revenue. 

DSC: Training Wheels Off; AI Agents Hit China's Car Lot

<div><ul><li>DSC Holdings Ltd. (NASDAQ: DSC) provides the leading operating system for China’s used car dealers.</li><li>Its flagship platform, DaFengChe, has held more than 90% share of that market since at least 2021, per China Insights Consultancy.</li><li>Most DaFengChe functionality is free, while revenue comes mainly from transaction services layered on top: B2B matching, inspection, and delivery. DSC enables dealers rather than competing with them.</li></ul></div>

DSC Holdings Ltd. (NASDAQ: DSC) provides the leading operating system for China’s used car dealers.Its flagship platform, DaFengChe, has held more than 90% share of that market since at least 2021, per China Insights Consultancy.Most DaFengChe functionality is free, while revenue comes mainly from transaction services layered on top: B2B matching, inspection, and delivery. DSC enables dealers rather than competing with them.

DSC: 2Q26 Results; Building the AI Layer on Top of a Decade of Dealer Data

China

DSC Holdings provides digitalization and transaction services to China’s used car industry, serving auto merchants such as used car dealers, new car brokers, and OEMs. Its digitalization solutions act as the software foundation for these customers, replacing manual workflows with cloud-based operating systems.

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DSC Holdings (DSC US)

DSC: Training Wheels Off; AI Agents Hit China's Car Lot

DSC’s flagship platform, DaFengChe, has held more than 90% market share in operating systems for China’s used car dealers since at least 2021...

Water Tower Research

DSC: 2Q26 Results; Building the AI Layer on Top of a Decade of Dealer Data

DSC Holdings Ltd. (NASDAQ: DSC) provides the leading operating system for China’s used car dealers.Its flagship platform, DaFengChe, has held more...

Water Tower Research

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