Research from Water Tower Research, Water Tower Research

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.

Research from Water Tower Research

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<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