Financial Report Highlights:
· DDC achieved comprehensive profitability, recording the highest historical gross margin and net profit.
· Launched the Bitcoin treasury strategy, holding a total of 1,008 BTC as of August 31, 2025, corresponding to a 1,798% BTC return.
DDC Enterprise Limited (NASDAQ: DDC, hereinafter referred to as "DDC" or "the Company") is a company focused on Asian consumers and at the forefront of enterprise-level Bitcoin acquisition and treasury management. Today, it announced its unaudited financial performance for the six months ended June 30, 2025.
Management Comments
"The first half of 2025 has been a pivotal period for DDC," said Norma Chu, Founder, Chairman, and CEO of DDC. "DDC initially started as a content-driven Asian food platform and has now grown into a beloved portfolio of ready-to-eat consumer brands. In the first six months of 2025, DDC achieved profitability, recording a record gross margin of 33.4% and a net profit of $5.2 million. Our core operating business is at its strongest historical state and is expected to maintain growth momentum in the second half of the year."
Norma Chu continued, "Additionally, we have firmly entered the Bitcoin treasury strategy space. At the end of May this year, we completed our first BTC purchase and established a responsible structured accumulation plan. Since then, we have rapidly expanded, completing historic financing of up to $528 million with top institutional investors and executing nine BTC purchases. As of the end of August, our treasury holdings have reached 1,008 BTC, with a BTC return of 1,798% since our initial purchase."
Chu emphasized, "DDC's competitive advantage in the Bitcoin treasury is due to our ability to deeply reach China's vast and underdeveloped investor base, along with our strong profitable core business, which provides a solid foundation for our entry into the capital markets. This foundation allows us to continuously accumulate Bitcoin and invest in growth. Our goal is very clear: to lead this emerging track, holding 10,000 BTC by the end of 2025, and to rank among the top three treasury companies globally within three years."
Financial Summary for the First Half of 2025
Unless otherwise specified, all data below is compared to the first half of 2024:
Total revenue was $15.6 million, a year-on-year decrease of 9.4%, mainly due to the company's strategic exit from the loss-making U.S. business. Revenue from the domestic business in China increased by 7.5% year-on-year, primarily driven by rising sales in China.
Gross profit was $5.2 million, a year-on-year increase of 16.9%, benefiting from strict supply chain optimization and a decrease in raw material costs due to deflation in the Chinese market.
Operating expenses were $3.2 million, a year-on-year decrease of 60.5%, mainly due to the exit from the loss-making U.S. business and strict cost control implemented across the overall business.
Net profit was $5.2 million, compared to a net loss of $5.2 million in the same period last year. The improvement in net profit was driven by the aforementioned factors and an unrealized gain of $3.8 million on the fair value of digital assets.
As of June 30, 2025, the total cash and cash equivalents and short-term investments amounted to $25.1 million.
Bitcoin Business Summary for the First Half of 2025
BTC Return on Investment (KPI): Achieved a 367% BTC return in the first half of 2025, with a cumulative return of 1,798% since the initial purchase (as of August 31, 2025).
Digital Assets: As of June 30, 2025, the company held approximately 138 BTC. During the six months ended June 30, 2025, the company recorded an unrealized gain of $3.8 million on the fair value of digital assets.
Capital Market Summary for the First Half of 2025
Completed a total of $528 million in strategic financing for the Bitcoin treasury strategy:
Secured $26 million in strategic PIPE investment from top Bitcoin and digital asset investors, including the conversion of outstanding debt to further strengthen the balance sheet.
Signed a convertible bond agreement with Anson Funds, with an initial issuance of $25 million (with a subsequent drawdown capacity of up to $275 million).
Secured an additional $2 million private investment from Anson Funds, along with a $200 million equity credit line.
Filed a $500 million F-3 Form universal registration statement with the U.S. Securities and Exchange Commission (SEC).
As of September 4, 2025, DDC has utilized $53 million of its $528 million strategic financing for Bitcoin purchases. The $275 million convertible bond capacity and the $200 million equity credit line with Anson Funds remain unused. Additionally, as of the same date, the company has not utilized the $500 million universal registration capacity.
Earnings Call
DDC will hold an earnings call today at 8:00 AM Eastern Time. This meeting will interpret the performance for the six months ended June 30, 2025, and provide a business update on the company's recent strategic developments.
Date: September 4, 2025
Time: 8:00 AM Eastern Time
Conference Link:
Live Webinar: Link
Phone Conference Registration: Link
Those wishing to attend by phone must register using the above phone conference registration link. After completing the registration, participants will receive an email containing the dial-in number, conference code, and personal PIN. To ensure the meeting starts on time, the company recommends participants join approximately 5 minutes early.
About DDC Enterprise Limited (NYSE: DDC)
DDC Enterprise Limited (NYSE: DDC) is leading the revolution in enterprise Bitcoin treasury while maintaining its foundation as a global leader in the Asian food platform. The company has strategically positioned Bitcoin as a core reserve asset and is actively executing a bold and accelerating accumulation strategy. While continuously expanding its portfolio of dining brands, DDC has also become a pioneer in publicly listed companies incorporating Bitcoin into their financial structure.
Cautionary Note Regarding Forward-Looking Statements
Some statements in this announcement are forward-looking statements. Investors can identify such forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "goal," "estimate," "intend," "plan," "believe," "likely," "potential," "continue," or other similar expressions. Examples of forward-looking statements include statements regarding the company's business outlook, Bitcoin accumulation plans, and the company's goals and future activities related to the aforementioned financing transactions, including the completion of transactions, satisfaction of closing conditions, and use of raised funds.
Such statements involve uncertainties and risks, including but not limited to the risks disclosed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the company's reports filed with the U.S. Securities and Exchange Commission in Form 20-F, 6-K, and others. Additionally, the company will submit formal copies of the aforementioned transaction-related documents in Form 6-K, which investors can review at www.sec.gov.
Forward-looking statements themselves involve risks, uncertainties, and other factors beyond the company's ability to predict or control. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that they will ultimately be realized. The company cautions investors that actual results may differ significantly from those anticipated and encourages investors to review other documents filed by the company with the SEC to understand other factors that may affect future performance.
Except as required by law, the company has no obligation to publicly update or revise any forward-looking statements regarding future events or changes in circumstances.
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