EXHIBIT 99.1

DSC Reports Second Quarter 2026 Unaudited Financial Results

HANGZHOU, China, Aug. 26, 2026 (GLOBE NEWSWIRE) -- DSC Holdings Ltd. (“DSC” or the “Company”) (Nasdaq: DSC), the AI application infrastructure for China’s used car industry, today announced its unaudited financial results for the second quarter ended June 30, 2026.
 

FINANCIAL HIGHLIGHTS
(Amounts in millions, except per ADS)   Q2 2026    Q2 2025    Q2 2026 
    RMB    RMB    US$ 
Revenue   167.0    161.1    24.6 
Net loss   (240.5)   (25.0)   (35.4)
Adjusted net loss (non-GAAP)   (7.4)   (19.2)   (1.1)
Adjusted basic and diluted net loss per ADS   (0.15)   (2.82)   (0.02)
                
OPERATING HIGHLIGHTS  Q2 2026
Operating System Engagement Metrics – DaFengChe1     
Dealership MAU2   65,334 
User MAU2   199,933 
Monetization Metrics – used car dealers only1     
Dealerships     
• Number of monetized used car dealerships3   9,146 
• ARPU of monetized used car dealerships4   RMB6,672 
Transaction Services     
• Number of monetized transaction services5   214,451 
• Average revenue per transaction service6   RMB259 
      
  1. Beginning with this Q2 2026 earnings release, the Company starts reporting certain operating metrics for its used car related operations in light of the overall evolution of its businesses. Please note that such used-car-only metrics should not be directly compared to historical operating metrics, which comprised different components. 
  2. “Dealership MAU” refers to average monthly active dealership accounts, and “User MAU” refers to average monthly active individual user accounts. Both are measured by the number of unique mobile devices that have accessed DSC’s operating system at least once during a month, except that if a user uses multiple mobile devices to access DSC’s operating system during a given month, they will be counted as only one dealership or one user account.
  3. “Monetized used car dealerships” refers to used car dealerships from whom DSC generates revenues by receiving a fee from either the dealership or its collaborator.
  4. "ARPU of monetized used car dealerships" refers to the average revenue per monetized used car dealership, calculated by dividing the total revenue generated from monetized used car dealerships by the number of such dealerships during a given period.
  5. “Monetized transaction services” refers to used car related transaction services that the Company generates revenues from, primarily B2B matching, used car inspection, car delivery and other B2B collaboration services. The Company also provides some transaction services to used car dealers free of charge.
  6. “Average revenue per transaction service” refers to the average revenue generated per monetized transaction service, calculated by dividing the total revenue generated from monetized transaction services by the number of such services during a given period.

MANAGEMENT COMMENTS
Mr. Junhong Yao, founder, director and chief executive officer of DSC, commented: “The second quarter marked an important milestone for DSC with the completion of our Nasdaq IPO in June. Our operating performance remained resilient during the quarter, with DaFengChe maintaining broad, in-depth dealer engagement, our revenue growing year over year, and our losses narrowing significantly.”

“In the second quarter, we also made meaningful progress in AI-powered products and services. We developed several AI agents by training commoditized LLMs on our massive, granular, proprietary, real-time data, and deployed them into used car dealers’ daily workflows. Our market intelligence AI agents enabled dealers to make far better-informed purchasing and selling decisions, and have delivered tangible results for some of them. These early successes demonstrate the value that AI can create when applied to a conventional industry in the real economy. While creating value for dealers, these AI applications are also presenting a number of new monetization opportunities for DSC, which we are actively exploring and expect to test through selected trials in the near term," he added.

“At the same time, our Nasdaq listing has placed us on the global stage just as China's used-car exports are growing tremendously. We have begun to cautiously explore how our technological capabilities could support this rapidly expanding cross-border market.”

Ms. Qin Zou, director and chief financial officer of DSC, added: "We are pleased with our performance in the second quarter, with revenue growing 3.7% year over year, broadly in line with our expectations based on historical trends and industry seasonality. Notably, our adjusted net loss narrowed by 61.5% to RMB7.4 million, reflecting our unwavering focus on profitability.

AI has been a major factor in both reducing our operating expenses and opening up new monetization fronts. In the second quarter, we ran intensive company-wide campaigns to drive rapid AI adoption and make our organization operate leaner, faster and better. We have also moved quickly to integrate AI into our dealer-facing products and services, where we are beginning to see early revenues and will continue to explore their full monetization potential. Looking ahead, we remain focused on the quality of growth, expanding monetization across our dealer-centric ecosystem, particularly opportunities created by AI applications, and continuing to improve profitability."

FINANCIAL RESULT DETAILS
Revenue
Revenue increased 3.7% year over year to RMB167.0 million (US$24.6 million) in the second quarter of 2026, primarily due to certain customer engagement solution projects for OEMs being accepted and the related revenue recognized during the quarter, partially offset by lower revenue following the discontinuation of certain OEM-facing marketing services.

Cost of Revenue
Cost of revenue increased 15.0% to RMB108.0 million (US$15.9 million), primarily reflecting higher costs associated with the growth in customer engagement solutions.

Operating Expenses
Total operating expenses were RMB302.5 million (US$44.6 million), compared with RMB91.8 million in the same period of 2025, primarily due to the recognition of RMB227.8 million (US$33.6 million) in share-based compensation upon the completion of the IPO in June and IPO-related expenses. Excluding share-based compensation, general and administrative, sales and marketing, and research and development expenses declined 14.0%, 14.0% and 29.2% year over year, respectively, reflecting continued cost discipline and improved operating efficiency.

Net Loss and Adjusted Net Loss (Non-GAAP)
Net loss was RMB240.5 million (US$35.4 million), compared with RMB25.0 million in the same period of 2025, primarily due to share-based compensation and IPO-related expenses in the total amount of RMB227.8 million (US$33.6 million).

Adjusted net loss (non-GAAP) narrowed 61.5% to RMB7.4 million (US$1.1 million), reflecting continued improvement in operating efficiency.

Balance Sheet and Liquidity
Liquidity strengthened following the Company’s IPO in June 2026, with cash and cash equivalents reaching RMB451.3 million (US$66.5 million) as of June 30, 2026.

CONFERENCE CALL INFORMATION
The Company’s management will host two separate live video webcasts to discuss the financial results and recent business developments, with one session conducted in Chinese and the other in English. The Chinese- and English-language sessions will cover the same prepared content. To join the webcasts, participants must use the respective links below to complete an online registration process. Participants may join the session conducted in their preferred language.

Details of the live video webcasts are as follows:
Chinese Session
Date: August 26, 2026
Time: 5:00 A.M. Eastern Time (5:00 P.M. Beijing/Hong Kong Time on the same day)
Webcast link: https://us06web.zoom.us/webinar/register/WN_1ZVTr026QCWpjDgPQcYZyw

English Session
Date: August 26, 2026
Time: 8:00 A.M. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day)
Webcast link: https://us06web.zoom.us/webinar/register/WN_3w3A0GPFR0mrwkOWeHayGQ

The earnings release and related materials, including live and archived webcasts of both sessions, will be available on the Company's investor relations website at https://ir.dasouche.com.

ABOUT DSC
DSC is the AI application infrastructure for China’s used car industry. The Company has held over 90% market share in operating system for China’s used car dealers since 2021, according to China Insights Consultancy, giving it nation-wide dealer connection and massive, granular, proprietary, real-time industry data. Building on this digital foundation, DSC further supports used car dealers with essential transaction services across their workflows. DSC’s services also engage and benefit thousands of dealers’ collaborators, such as inspectors, transporters and other internet platforms, creating an ecosystem with used car dealers at its center.

SAFE HARBOR STATEMENT
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.

USE OF NON-GAAP FINANCIAL MEASURES
The Company uses adjusted loss, which is a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that adjusted loss for the year provides useful information about its results of operations and enhances the overall understanding of its past performance and future prospects.

The Company defines non-GAAP financial measure by excluding the impact of share-based compensation expenses and amortization of intangible assets resulting from business combinations from the respective GAAP financial measure.

Adjusted loss should not be considered in isolation or construed as an alternative to loss from operations, net loss or any other measure of performance or as an indicator of the Company’s operating performance. Investors are encouraged to review adjusted loss for the year and the reconciliation to its most directly comparable U.S. GAAP measure. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

Reconciliations of the Company’s non-GAAP financial measure to its most comparable U.S. GAAP measure are included at the end of this press release.

EXCHANGE RATE
This press release contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the noon buying rates of RMB6.7851 to US$1.00 in effect on June 30, 2026, as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to in this press release could have been converted into USD or RMB, as the case may be, at any particular rate or at all.

INVESTOR RELATIONS CONTACT

DSC IR Department
Email: ir@souche.com

The Blueshirt Group
Ms. Feifei Shen
Email: dsc@blueshirtgroup.co

DSC HOLDINGS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and US dollar (“US$”),
except for share and per share data, unless otherwise noted)

 

   As of  As of
  

December 31, 2025

 

June 30, 2026
   RMB  RMB  RMB
      (Unaudited)  (Unaudited)
ASSETS         
Current assets:               
Cash and cash equivalents   178,862    451,285    66,511 
Restricted cash   1,147    1,147    169 
Short-term investments   31,730    79,406    11,703 
Accounts receivable, net   60,753    49,431    7,285 
Amounts due from related parties, current   84,626    141,556    20,863 
Contract assets, net   90,337    95,928    14,138 
Prepayments and other current assets, net   154,566    130,231    19,194 
Total current assets   602,021    948,984    139,863 
                
Non-current assets:               
Fixed assets, net   3,571    2,772    409 
Long-term investments, net   7,572    7,315    1,078 
Intangible assets, net   64,408    69,050    10,177 
Right-of-use assets, net   13,395    7,579    1,117 
Goodwill   596,858    596,858    87,966 
Amounts due from related parties, non-current   132,716    97,705    14,400 
Other non-current assets, net   14,865    15,168    2,235 
Total non-current assets   833,385    796,447    117,382 
Total assets   1,435,406    1,745,431    257,245 
                
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY               
Current liabilities:               
Short-term loans   121,274    217,356    32,034 
Accounts payable   60,800    61,580    9,076 
Contract liabilities and customer advance   51,170    53,455    7,878 
Amounts due to related parties, current   2,004    233    34 
Operating lease liabilities, current   4,823    3,270    482 
Accrued expenses and other current liabilities   187,967    170,263    25,095 
Total current liabilities   428,038    506,157    74,599 
                
Non-current liabilities:               
Amounts due to related parties, non-current   282,998    263,694    38,864 
Operating lease liabilities, non current   8,616    4,305    634 
Other non-current liabilities   8,350    8,714    1,284 
Total non-current liabilities   299,964    276,713    40,782 
Total liabilities   728,002    782,870    115,381 


DSC HOLDINGS LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and US dollar (“US$”),
except for share and per share data, unless otherwise noted)

 

   As of  As of
   December 31, 2025  June 30,2026
   RMB  RMB  US$
      (Unaudited)  (Unaudited)
Mezzanine equity               
Preferred Shares   16,538,315    -    - 
                
Shareholders' equity:               
Ordinary Shares   123    712    105 
Additional paid-in capital   -    18,032,457    2,657,655 
Accumulated deficit   (15,828,914)   (17,066,168)   (2,515,242)
Accumulated other comprehensive loss   (2,209)   (4,500)   (663)
Total DSC Holdings Ltd. shareholders’ (deficit)/equity   (15,831,000)   962,501    141,855 
Noncontrolling interests   89    60    9 
Total shareholders' (deficit)/equity   (15,830,911)   962,561    141,864 
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY   1,435,406    1,745,431    257,245 


 

DSC HOLDINGS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and US dollar (“US$”),
except for share and per share data, unless otherwise noted)

 

   For the
Three Months Ended		  For the
 Six Months Ended
    June 30,
2025		    June 30,
2026		    June 30,
2026		    June 30,
2025		    June 30,
2026		    June 30,
2026		 
    RMB    RMB    US$    RMB    RMB    US$ 
    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited) 
Revenues   161,104    167,047    24,620    303,840    313,619    46,222 
Cost of revenues   (93,943)   (108,047)   (15,924)   (178,936)   (200,741)   (29,586)
Gross profit   67,161    59,000    8,696    124,904    112,878    16,636 
                               
Operating expenses:                              
General and administrative   (16,514)   (173,671)   (25,596)   (46,891)   (194,844)   (28,716)
Sales and marketing   (51,062)   (92,096)   (13,573)   (97,604)   (134,224)   (19,782)
Research and development   (24,196)   (36,767)   (5,419)   (48,106)   (52,979)   (7,808)
Total operating expenses   (91,772)   (302,534)   (44,588)   (192,601)   (382,047)   (56,306)
Operating loss   (24,611)   (243,534)   (35,892)   (67,697)   (269,169)   (39,670)
                               
Other (expenses)/income                              
Interest expense, net   (1,002)   (118)   (17)   (1,961)   (3,885)   (573)
Foreign exchange income, net   143    1,018    150    213    1,756    259 
Others, net   415    2,732    403    4,878    2,284    337 
Total other (expenses)/
income, net		   (444)   3,632    536    3,130    155    23 
Loss before income taxes   (25,055)   (239,902)   (35,356)   (64,567)   (269,014)   (39,647)
Income tax expense   (187)   (695)   (102)   (368)   (936)   (138)
Share of incomes from equity method investments   214    109    16    323    220    32 
Net loss   (25,028)   (240,488)   (35,442)   (64,612)   (269,730)   (39,753)
Less: Net income (loss) attributable to noncontrolling interests   900    (3)   -    13    (29)   (4)
Net loss attributable to DSC Holdings Ltd.   (25,928)   (240,485)   (35,442)   (64,625)   (269,701)   (39,749)
Accretion of the Company`s preferred shares   (427,019)   (463,024)   (68,241)   (841,685)   (913,061)   (134,569)
Net loss attributable to ordinary shareholders   (452,947)   (703,509)   (103,683)   (906,310)   (1,182,762)   (174,318)
Loss per share:                              
Basic and diluted   (3.33)   (0.70)   (0.10)   (6.66)   (1.18)   (0.17)
Weighted average shares:                              
Basic and diluted   136,159,402    1,001,449,847    1,001,449,847    136,159,402    1,001,449,847    1,001,449,847 


DSC HOLDINGS LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and US dollar (“US$”),
except for share and per share data, unless otherwise noted)

 

   For the Three Months Ended  For the Six Months Ended
   June 30,
2025		  June 30,
2026		  June 30,
2026		  June 30,
2025		  June 30,
2026		  June 30,
2026
   RMB  RMB  US$  RMB  RMB  US$
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Other comprehensive loss, net of tax of nil:                  
Foreign currency translation adjustments   (201)   (1,141)   (168)   (304)   (2,291)   (338)
Comprehensive loss   (25,229)   (241,629)   (35,610)   (64,916)   (272,021)   (40,091)
Comprehensive income (loss) attributable to noncontrolling interests   900    (3)   -    13    (29)   (4)
Comprehensive loss attributable to DSC Holdings Ltd.   (26,129)   (241,626)   (35,610)   (64,929)   (271,992)   (40,087)
Accretion of preferred shares   (427,019)   (463,024)   (68,241)   (841,685)   (913,061)   (134,569)
Comprehensive loss attributable to ordinary shareholders of DSC Holdings Ltd.   (453,148)   (704,650)   (103,851)   (906,614)   (1,185,053)   (174,656)
                               
Reconciliation of net loss to non-GAAP                              
Net Loss (GAAP)   (25,028)   (240,488)   (35,442)   (64,612)   (269,730)   (39,753)
Amortization of intangible assets (1)   5,820    5,756    848    11,402    11,496    1,694 
Share-based compensation expenses were included in:                              
General and administrative   -    159,472    23,503    -    159,472    23,503 
Sales and marketing   -    48,196    7,103    -    48,196    7,103 
Research and development   -    19,627    2,893    -    19,627    2,893 
Adjusted net loss (non-GAAP)   (19,208)   (7,437)   (1,095)   (53,210)   (30,939)   (4,560)


(1) This represents amortization of intangible assets resulting from business combinations.