DC Holdings (00861) is planning to conduct a private placement to raise funds for Digital China Information Service Group (000555.SZ).

DC HOLDINGS (00861) announced that its indirect non-wholly-owned subsidiary, Digital China Information Service Group (000555.SZ) (DCITS), plans to conduct a private placement to raise funds from up to 35 specific target subscribers. The total amount of funds to be raised will not exceed RMB 1 billion, and the number of DCITS shares to be issued will not exceed 20% of the total number of shares issued by DCITS before the private placement. The private placement must be approved by the Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission. Assuming that the total amount of funds to be raised in the private placement does not exceed RMB 1 billion, DCITS plans to use the net proceeds from the private placement (after deducting all applicable costs and expenses related to the private placement) as follows: - Approximately RMB 320.91 million will be used to increase DCITS's investment in artificial intelligence technology. - Approximately RMB 387.97 million will be used to establish business bases in the eastern region of China. - Approximately RMB 291.12 million will be used to supplement DCITS's operating capital, but the actual amount used to supplement DCITS's operating capital cannot exceed 30% of the total amount of funds raised in the private placement. DCITS plans to use a portion of the funds raised to supplement the working capital needed in the process of business development, which will help optimize DCITS's capital structure, reduce its debt-to-asset ratio, enhance its risk resistance capacity, and better meet the funding needs of business development. As the implementation of DCITS's "AI+Finance" accelerates, the continuous advancement of software productization and commercialization, DCITS's R&D and delivery capabilities will significantly improve, leading to further growth in business scale, continuous growth in operating income and net profit, and enhancing DCITS's profitability. DCITS plans to increase investment in AI technology, enhance knowledge management in various financial fields, reduce knowledge operation costs, and introduce Retrieval-Augmented Generation (RAG) technology to ensure the accuracy and compliance of large model outputs. Additionally, DCITS plans to establish an intelligent software engineering platform for the financial industry, covering the entire R&D lifecycle, achieving intelligent upgrades in key aspects such as demand insight and code generation, and enhancing R&D quality and delivery stability. Furthermore, DCITS plans to develop an Agent matrix covering business scenarios such as marketing, wealth management, and credit, build a "digital workforce" system, and promote the intelligent transformation of relevant business scenarios. DCITS plans to use a portion of the funds raised to establish a business base in the eastern region of China. As a financial technology service provider, DCITS's core competitiveness relies heavily on R&D and delivery talents. With a deep customer base in the eastern region and a large team size, financial clients have strict requirements for system stability. Localized immediate response can significantly reduce fault resolution time and communication costs. Establishing a business base in the eastern region aims to improve the working environment, achieve office consolidation and R&D delivery collaboration through unified planning, enhance resource utilization efficiency and response speed, build an efficient and collaborative R&D delivery integrated system, support business scaling expansion, and DCITS's sustained rapid development. The company expects to directly benefit from the business growth of DCITS, and the value of the company's shares will also increase, which is in line with the interests of all shareholders.