On March 30, DC HOLDINGS (00861) released its 2025 performance announcement. The announcement indicates that the company firmly adheres to its core "AI for Process" philosophy and comprehensively advances the "Data x AI" strategy upgrade. Through the deep integration of physical supply chain services and full-stack AI technology, the company achieved milestone breakthroughs in both strategic implementation and operational results. During the reporting period, the company's revenue reached RMB 21.015 billion, a 26% increase compared to the previous year. Net profit attributable to owners turned from a loss of RMB -254 million last year to a profit of RMB 31.42 million. Notably, the company disclosed Non-IFRS metrics for the first time. Adjusted net profit surged strongly to RMB 215 million from RMB -127 million in the prior year. Adjusted EBITDA increased significantly to RMB 612 million from RMB 299 million last year, achieving a 104% doubling in growth. Furthermore, the company maintains strong cash flow and a substantial order backlog. Net cash generated from operating activities was RMB 490 million during the reporting period, with cash on hand amounting to RMB 3.488 billion. The value of newly signed contracts reached a high of RMB 16.19 billion.

In terms of AI technology, building upon its National Technology Invention Award first prize achievement, DC HOLDINGS completed a leapfrog upgrade of its YanYun technology system. Based on the YanYun 1.0 DaaS product, it officially launched the YanYun 2.0 Infinity data intelligence decision enablement platform. It also pioneered the industry-first YanYun 3.0 AI First FDE business model. This model achieves deep coupling of AI technology with customer business processes, streamlining the entire chain from pre-sales to contract signing. Overall operational efficiency improved by 30-50 times, while project delivery cycles accelerated by 5-7 times.

Regarding supply chain scenarios, the company launched the "Xiao Jin" agent cluster, comprehensively empowering intelligent scenario upgrades. Within the year, it signed strategic cooperation agreements with 15 core clients and ecosystem partners. Annual shipment orders exceeded 100 million, representing a year-on-year increase of approximately 40%. Concurrently, the company strategically positioned itself in the embodied intelligence sector, collaborating with several leading enterprises to accelerate the implementation of "last-mile" intelligent applications in warehousing.

Strategic Focus Leads High-Quality Performance Turnaround The highlights of DC HOLDINGS' 2025 performance extend beyond the return to profitability, emphasizing strategic business structure focus and demonstrating high-quality, sustainable development resilience. This year, the company significantly adjusted its business reporting segments, newly categorizing them into three divisions: "Data Intelligence Services," "Integrated Supply Chain Services," and "Fintech Services and Others." This clearly anchors the core focus on the "AI + Supply Chain" main direction and helps investors reassess the unique value of the company's AI implementation, particularly its irreplaceable niche in supply chain scenarios. Data intelligence acts as the "brain," enabling horizontal digital and intelligent upgrades across industries. The integrated supply chain serves as the solid "body," deeply excavating value from vertical supply chain business scenarios. Their deep integration forms the dual-engine for the company's future development.

Particularly noteworthy is the company's first-time disclosure of "Service-based Business" revenue data. This business builds differentiated advantages through high value-added services, strong customer stickiness, and sustainable profitability. Its core relies on the integrated supply chain business and full-stack data intelligence technology to deliver end-to-end fulfillment, e-commerce operations, and digital/intelligent enablement services for clients, creating a high-value service system. In 2025, service-based revenue reached RMB 10.14 billion, accounting for 48% of the company's total revenue. A key corroborating operational metric, the Net Dollar Retention rate, reached a high of 100%, an 8-percentage-point increase year-on-year. This strongly proves high client recognition of its services, laying a foundation for stable, high-profit future growth. This performance turnaround essentially reflects the successful transformation of the business model towards high-quality, high-stickiness services.

"Data x AI" Drives Exponential Efficiency Breakthroughs Behind the performance growth lies the comprehensive upgrade and execution of DC HOLDINGS' "Data x AI" strategy. The core idea is to deeply embed cutting-edge technology into business processes, rather than keeping it confined to laboratories, ultimately translating it into quantifiable, exponential efficiency breakthroughs. The company's key driver is the industry-pioneering "YanYun AI First FDE" business model. This is not merely a technical tool delivery but a profound organizational and process transformation. Analysts suggest this model can be compared to the renowned big data technology company Palantir. This model positions top R&D and solution teams upfront for deep co-creation and agile validation with clients, essentially building an integrated operational formation combining "light consulting + deep solution binding + rapid implementation delivery + continuous operation." The results are revolutionary: projects that traditionally required 300 days for completion now take only 17 days under the new model, with only half the manpower of the original model. This signifies the company's technology monetization path has evolved from selling products to reshaping client business processes and efficiency paradigms.

Simultaneously, this model facilitates the rapid accumulation of data assets and industry knowledge bases, thereby building a solid moat, fostering strong customer stickiness, and generating stable recurring revenue. As this model is further promoted and replicated in the supply chain field, it is expected to significantly contribute to overall cost reduction and efficiency improvement across related industry supply chains. DC HOLDINGS' ambitions extend further. Due to the strong efficiency advantages of the YanYun AI First FDE model in identifying enterprise pain points and acquiring industry knowledge and data, the company can rapidly complete proof-of-concept for unfamiliar industries based on its accumulated methodology and technological achievements. Through co-creation with clients, it delivers tangible results, enabling rapid cross-industry replication and driving exponential business growth breakthroughs.

Agent Cluster Helps Solidify Industry Leadership The ultimate test of strategy lies in business scenarios. In 2025, DC HOLDINGS' AI strategy underwent an impressive "stress test" in its core supply chain battlefield, continuously consolidating its fundamental industry position. On one hand, the YanYun AI First FDE, as the 3.0 model derived from the National Technology Invention Award achievement, provides a solid technical foundation for the integrated supply chain business. On the other hand, the company consistently implements the AI for Process concept, applying its full-stack AI capabilities to core supply chain scenarios. Combined with data assets accumulated over 20+ years, it rapidly built the supply chain agent cluster "Xiao Jin," comprehensively reconstructing execution systems like OMS, WMS, and TMS, and swiftly enhancing operational effectiveness.

Reportedly, during the extreme stress test of the 2025 "Double 11" shopping festival with tens of millions of order peaks, "Xiao Jin" fully empowered the entire chain from forecast stocking to outbound handover. It achieved a 280% increase in peak order processing capacity and a 20% improvement in complex document picking and sorting efficiency, significantly enhancing service response speed and customer service quality. Currently, as agent application fervor spreads industry-wide, DC HOLDINGS has taken the lead in embedding the supply chain agent cluster across the entire process chain. This demonstrates the company's forward-looking technological layout and mature scenario implementation capabilities, further proving AI's reliability and immense value in complex real-world scenarios.

In terms of growth strategy, the company employs a dual-drive approach of "Client + Ecosystem." It deeply cultivates existing clients through the "Baby Plan" and expands into new markets via the "Star Picking Plan." Through refined client tiering operations, the net number of retained clients increased year-on-year to 508. It successfully expanded into 5 new clients each contributing over RMB 100 million in revenue. In the consumer electronics industry, it provided localized storage and rapid redistribution services for a leading IT client, enhancing fulfillment efficiency through integrated warehousing, transportation, and distribution solutions. Relying on the KingkooData Supply Chain Control Tower, it customized big data analysis and monitoring dashboards for precise end-to-end supply chain control. In the smart communications industry, it continued to win bids for national logistics centralized service procurement projects for mobile terminals, with a total scale exceeding RMB 400 million. It also expanded cooperation with a globally leading smartphone client, fully demonstrating the group's robust fulfillment capability supported by its extensive domestic warehouse and distribution network.

In the FMCG and cosmetics industry, it provided a domestic emerging bio-efficacy skincare brand with an omni-channel supply chain solution integrating B2B and B2C. Leveraging e-commerce platform resources, it extended services to include market analysis, product selection, and after-sales support. Simultaneously, empowered by the "Xiao Jin" supply chain agent, which dynamically analyzes real-time data changes in complex warehouse management operations, it provided clients with optimal solutions balancing fulfillment guarantees and warehouse profit/loss, successfully ensuring highly flexible operations during major promotions like Double Eleven. These series of actions not only translate AI technology into tangible cost reduction and efficiency gains for clients but also strengthen business barriers and the ecosystem synergy network.

Reviewing DC HOLDINGS' 2025, it was a year of successful strategic restructuring. Through clear business segments, the company demonstrated its commitment to transitioning towards AI-driven, high-value services. The YanYun AI First FDE model achieved disruptive breakthroughs in technology monetization efficiency. Ultimately, within the core supply chain scenario, the "Xiao Jin" agent and solid client ecosystem validated the strategy's effectiveness. The company's model of upgrading AI technology from a supporting tool to a core process engine not only significantly reduced marginal delivery costs but also secured long-term profits through the high stickiness of service-based businesses. Guided by the wave of the digital economy and the strategic direction of the "15th Five-Year Plan" to vigorously cultivate new quality productive forces, DC HOLDINGS delivered an annual report marked by both breakthroughs and insights, providing a vivid example for industrial intelligent transformation.

The "15th Five-Year Plan" outline explicitly calls for the comprehensive implementation of the "AI Plus" initiative to empower all industries extensively. For the first time, it dedicated a separate section to "advancing the development of Digital China and enhancing digital and intelligent development levels," signifying a profound shift in focus from "digitalization" to "digital and intelligentization." DC HOLDINGS' forward-looking business layout, technological path, and high-value service model precisely align with the national core policy directions for AI, data, and supply chains during the "15th Five-Year Plan" period. Driven by both favorable policies and industrial demand, DC HOLDINGS, having completed key strategic positioning and elegantly transformed into an "AI-native technology enterprise," stands at the starting point of a new round of high-quality development. It is poised to release greater corporate and social value in the process of empowering the digital and intelligent transformation of the real economy.