DC HOLDINGS (00861) reshapes the business landscape with Data x AI, driving an efficiency revolution with new models.

On March 30th, Digital China Group Holdings Limited (referred to as DC HOLDINGS, 00861) released its 2025 performance report. The announcement shows that DC HOLDINGS firmly adheres to the core concept of "AI for Process" and comprehensively promotes the "Data x AI" strategy to elevate, achieving a milestone breakthrough in strategic implementation and operational effectiveness through the deep integration of supply chain physical services and AI full-stack technology. During the reporting period, the company's operating income was 21.015 billion yuan, an increase of 26% compared to the same period last year; net profit attributable to the parent company turned from a loss to a profit, from -254 million yuan in the same period last year to a profit of 31.42 million yuan. Of note, for the first time, the company disclosed Non-IFRS (non-International Financial Reporting Standards) indicators, with adjusted net profit increasing strongly from -127 million yuan in the same period last year to 215 million yuan; adjusted EBITDA increased significantly from 299 million in the same period last year to 612 million yuan, achieving a doubled growth of 104%. In addition, the company has ample cash flow, sufficient orders in hand, net cash generated from operating activities of 490 million yuan during the reporting period, with cash on hand of 3.488 billion yuan, and a new contract size of up to 16.19 billion yuan. In terms of AI technology, DC HOLDINGS leverages the national first prize for technological invention achievements as the base, completing the Yanyeun technology system's leapfrog upgrade: building on the Yanyeun 1.0 DaaS product, the company officially launched the Yanyeun 2.0 Infinity data intelligent decision-making enabled platform, and pioneered the Yanyeun 3.0 AI First FDE (AI-prioritized advanced deployment engineer) business model in the industry, effectively coupling AI technology with customer business processes, integrating the entire sales process from pre-sales to signing contracts, achieving a 30-50 times increase in overall operational efficiency, and speeding up project delivery cycles 5-7 times. In terms of supply chain scenarios, the company launched the "Xiaojin" intelligent body cluster, empowering comprehensive smart upgrades in various scenarios; signed strategic cooperation agreements with 15 core customers and ecological partners during the year, with annual shipment orders exceeding billions, a year-on-year increase of approximately 40%; and strategically positioned itself in the intelligent race track, accelerating the landing of "last mile" intelligent applications in the warehousing field with multiple leading companies. I. Strategic focus leads to high-quality performance turnaround DC HOLDINGS' highlights for 2025 go beyond the profit turnaround, demonstrating a strategic focus on business structure that reveals high-quality and sustainable development resilience. This year, the company made significant adjustments to its business disclosure caliber, dividing it into three main divisions: "Data Intelligence Services," "Integrated Supply Chain Services," and "Financial Technology Services and Others," clearly anchoring around the core mainline of "AI + supply chain." This not only helps investors reassess the company's scarce value in AI implementation, particularly in irreplaceable ecological positions within supply chain scenarios. Data intelligence serves as the "brain," horizontally empowering industry's digitalization; integrated supply chain acts as a solid "body," vertically mining the value of supply chain business scenarios; the deep integration of the two forms the twin-engine for the company's future development. Particularly noteworthy was the first disclosure of "service-based business" revenue data. By relying on high value-added, high customer stickiness, and sustainable profitability for differentiation, the core lies in leveraging integrated supply chain business and full-stack data intelligence technology to deliver end-to-end fulfillment, e-commerce operations, and digital empowerment services to customers, creating a high-value service system. Service revenue in 2025 reached 10.14 billion yuan, accounting for 48% of the company's total revenue. A key operating indicator corroborating this is the high net dollar retention rate (NDR) of 100%, an 8 percentage point year-on-year increase, strongly proving customer recognition of its services and laying the foundation for stable, high-profit growth in the future. This performance turnaround is essentially a successful transformation of the business model towards high-quality, high-stickiness services. II. "Data x AI" drives exponential efficiency breakthroughs Behind the growth in performance is DC HOLDINGS' thorough elevation and implementation of the "Data x AI" strategy. The core is to anchor cutting-edge technology deeply within business processes rather than leaving it in the realm of experimentation, ultimately translating it into quantifiable, exponential efficiency breakthroughs. The company's key innovation is the industry-leading "Yanyeun AI First FDE" business model. This is not simply a delivery of technical tools but a profound organizational and process transformation. Analysts believe that this business model should be benchmarked against the well-known big data company Palantir (PLTR). The model positions top research and solution teams upfront, engaging in deep co-creation and agile validation with customers, effectively establishing an integrated operational matrix of "light consultation + deep solution binding + rapid implementation delivery + continuous operation." The results are revolutionary, where projects that traditionally took 300 days to complete were accomplished in just 17 days under the new model, and with only half the manpower required in the previous model. This signifies a transformation in the company's technology monetization path from selling products to reshaping customer business processes and operational efficiency paradigms. Furthermore, this model allows for rapid asset deposition and industry knowledge base construction, creating a solid moat and ensuring stable customer stickiness and continuous income. As the above model is further propagated and replicated in the supply chain field, it is expected to greatly promote overall cost reduction and efficiency improvement in related industries. Yet, DC HOLDINGS aims higher, as the Yanyeun AI First FDE model, with its strong efficiency advantages in insight into enterprise pain points, industry knowledge acquisition, and data utilization, empowers the company to rapidly validate concepts based on historical accumulated methodologies and technological achievements when faced with unfamiliar industries. Through co-creation with customers, tangible results can be expedited, enabling fast replication capabilities and driving exponential business growth. III. Intelligent body clusters help solidify industry leadership The ultimate test of strategy lies in business scenarios. In 2025, DC HOLDINGS' AI strategy completed a stunning "stress test" on the core battlefield of the supply chain, continuously reinforcing its industry foundation. On one hand, the Yanyeun AI First FDE, as a 3.0 model transformed by DC HOLDINGS based on the first prize for national technological invention awards, provides a solid technical foundation for integrated supply chain business. On the other hand, the company continues to implement the AI for Process concept, applying AI full-stack capabilities to core supply chain business scenarios and combining them with over 20 years of accumulated data assets, rapidly constructing the supply chain intelligent body cluster "Xiaojin," comprehensively restructuring OMS, WMS, TMS, and other execution systems, swiftly enhancing operational efficiency. During the 2025 "Double 11" peak order volume stress test, "Xiaojin" empowered the entire process from forecasting stocking to outbound handover, increasing order peak processing capacity by 280%, improving efficiency in picking and sorting of complex documents by 20%, greatly improving service response speed and customer service quality. Currently, the wave of intelligent body applications is spreading throughout the industry, and DC HOLDINGS has pioneered the embedding of the supply chain intelligent body cluster in all chain linkages, demonstrating the company's forward-thinking technological layout, mature scenario implementation capabilities, and further proving the reliability and immense value of AI in complex real-world scenarios. In its growth strategy, the company is driven by the dual wheels of "customers + ecosystem," deepening existing customer relationships through the "Treasure Plan" and expanding into new markets through the "Star Picking Plan." Through refined customer segmentation and operations, the net number of retained customers increased year-on-year to 508; successfully expanded the base of incremental customers contributing more than tens of millions in revenue by 5. In the consumer electronics industry, the company provided local storage and rapid allocation solutions for a leading IT customer, improving fulfillment efficiency through integrated warehousing and transportation solutions; leveraging the KingkooData supply chain control tower, the company customized big data analysis and regulatory billboards, achieving precise control of the supply chain throughout the process. In the smart communications industry, the company consistently won bids for the national logistics centralized service procurement project for mobile terminals, with a total scale exceeding 400 million yuan; and reached a cooperation agreement with a global leading smart phone customer, fully demonstrating the group's strong fulfillment capabilities with its nationwide warehouse and distribution network. In the fast-moving consumer goods and beauty industry, the company provided a fully integrated omnichannel supply chain solution for a domestic bio-effective skincare brand, extending market analysis, product selection, after-sales, and one-stop operation services through e-commerce platform resources; by leveraging Xiaojin's supply chain intelligent body empowerment, real-time data changes in complex warehouse management operations were dynamically analyzed to provide customers with fulfillment security and the optimal solution for warehouse profit and loss, ensuring smooth high-elasticity operations during major promotions like Double Eleven. This series of actions not only translates AI technology into real cost reduction and efficiency enhancement for customers but also solidifies business barriers and ecosystem synergy networks. Looking back on DC HOLDINGS in 2025, it was a successful year of strategic restructuring. Through clear business divisions, the company has demonstrated a strong determination towards transitioning to high-value services driven by AI. Through the Yanyeun AI First FDE model, the company has achieved a disruptive breakthrough in efficiency in technology monetization, ultimately validating the effectiveness of its strategy in the core supply chain scenario with the "Xiaojin" intelligent body and a robust customer ecosystem. The company has transformed AI technology from an ancillary tool to a core process engine, significantly reducing marginal delivery costs, and through high-stickiness service-based business, securing long-term profits. Under the backdrop of the digital economy wave and the strategic guidance to vigorously cultivate new quality productivity in the "14th Five-Year Plan," Digital China Group Holdings Limited has delivered a groundbreaking and inspiring annual report, providing a vibrant example for the industrial intelligence transformation. The "14th Five-Year Plan" clearly states the need to comprehensively implement the "AI +" action to empower all sectors comprehensively and emphasizes advancing the construction of Digital China to enhance the level of digital intelligence development as a separate section for the first time, marking a profound shift from "digitization" to "digital intelligence." DC HOLDINGS' forward-looking business layout, technological path, and high-value service model accurately position it in line with the core policy directions of the national AI, data, and supply chain fields during the "14th Five-Year Plan" period. Driven by policy initiatives and industry demand, the company has completed critical deployments, and as a result of transforming into an "AI-native technology company," DC HOLDINGS stands at the starting point of a new round of high-quality development, poised to unleash greater corporate and social value in the process of empowering the digital transformation of the real economy.