DDC Releases Record-Breaking Financial Report for First Half of 2025, Treasury's BTC Strategic Yield Reaches 1,798%

Financial Report Highlights:

· DDC Achieved Comprehensive Profitability, Marking the Highest Ever Gross Margin and Net Profit

· Initiated Bitcoin Treasury Strategy, Accumulating a total of 1,008 BTC as of August 31, 2025, Resulting in a 1,798% BTC Return on Investment

DDC Enterprise Limited (NASDAQ: DDC, hereinafter referred to as "DDC" or the "Company"), a company at the forefront of enterprise-level Bitcoin acquisition and treasury management with a focus on the Asian consumer, today announced its unaudited financial performance for the six months ended June 30, 2025.

Management Commentary

"The first half of 2025 was a transformative period for DDC," said Norma Chu, Founder, Chairman, and CEO of DDC. "DDC started as a content-driven Asian cuisine platform and has now evolved into a portfolio of beloved ready-to-eat consumer brands. In the first half of 2025, DDC achieved profitability, marking a record 33.4% gross margin and a $5.2 million net profit. Our core operations are at their strongest ever, and we expect to continue this growth trajectory in the second half of the year."

Norma Chu further stated, "Additionally, we have firmly entered the Bitcoin treasury strategy space. By the end of May this year, we completed our initial BTC purchase and established a responsible structured accumulation plan. Since then, we have rapidly expanded, securing a historic funding of up to $528 million from top institutional investors and completing nine BTC acquisitions. As of the end of August, our treasury holdings have reached 1,008 BTC, with a 1,798% BTC ROI since our initial purchase."

Chu concluded by saying, "DDC's competitive advantage in the Bitcoin treasury stems from our ability to tap into China's vast yet underdeveloped investor base, coupled with a strong core business profitability that provides a solid foundation for our entry into the capital markets. This foundation allows us to continue accumulating Bitcoin and fueling growth. Our goal is crystal clear: to lead in this emerging space, hold 10,000 BTC by the end of 2025, and rank among the top three treasury companies globally within three years."

Financial Summary for the First Half of 2025

Unless otherwise stated, all data below is compared to the first half of 2024:

Total revenue was $15.6 million, a year-over-year decrease of 9.4%, mainly due to the company's strategic exit from its loss-making U.S. business. Revenue from China domestic business saw a year-over-year growth of 7.5%, primarily driven by increased sales volume in China.

Gross profit was $5.2 million, a 16.9% year-over-year increase, benefiting from rigorous supply chain optimization and a decrease in raw material costs due to market deflation in China.

Operating expenses were $3.2 million, a 60.5% year-over-year decrease, mainly attributed to the exit from the loss-making U.S. business and strict cost control measures across the entire 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 a $3.8 million unrealized gain on digital asset fair value.

As of June 30, 2025, cash and cash equivalents plus short-term investments totaled $25.1 million.

2025 First Half Bitcoin Business Summary

BTC Key Performance Indicator (KPI): Achieved a 367% BTC return on investment in the first half of 2025, accumulating to a total 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. In the six months ending on June 30, 2025, the company recorded a $3.8 million unrealized gain on digital asset fair value.

2025 First Half Capital Markets Summary

Completed a total of $528 million strategic financing for Bitcoin treasury strategy:

Received a $26 million strategic PIPE investment from top Bitcoin and digital asset investors, including convertible debt, to further strengthen the balance sheet.

Issued convertible bonds to Anson Funds, with an initial issuance of $25 million (additional drawdown of up to $275 million).

Received an additional $2 million private investment from Anson Funds and a $200 million equity line of credit.

Submitted a $500 million Form F-3 shelf registration statement to the U.S. Securities and Exchange Commission (SEC).

As of September 4, 2025, DDC has utilized $53 million of its $528 million strategic financing to purchase Bitcoin. The $275 million convertible bond facility with Anson Funds and the $200 million equity line of credit remain untapped. Additionally, as of the same date, the company has not utilized the $500 million shelf registration capacity.

Earnings Call

DDC will be hosting an earnings call today at 8:00 AM Eastern Time. The call will discuss the half-year performance ending on 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

Joining Instructions:

Webinar Link:Link

Phone Call Registration:Link

Participants wishing to join via phone call should register using the provided link for phone call registration. Upon completion of registration, participants will receive an email containing dial-in numbers, the conference code, and a personal PIN. To ensure a prompt start to the call, participants are advised to dial in approximately 5 minutes early.

About DDC Enterprise Limited (New York Stock Exchange Ticker: DDC)

DDC Enterprise Limited (NYSE: DDC) is leading the enterprise Bitcoin treasury revolution while maintaining its foundation as a global leader in Asian cuisine platforms. The company has strategically positioned Bitcoin as a core reserve asset and is actively pursuing a bold and rapidly accelerating accumulation strategy. As it continues to expand its portfolio of dining brands, DDC has also emerged as a pioneer among public companies in integrating Bitcoin into its financial architecture.

Forward-Looking Statement Disclaimer

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," "target," "estimate," "intend," "plan," "believe," "likely," "potential," "continue," or similar expressions. Examples of forward-looking statements include statements regarding the company's business outlook, Bitcoin accumulation plans, and statements concerning the company's objectives and future activities under the financing transaction, including completion of the transaction, satisfaction of closing conditions, and the use of proceeds.

Such statements involve uncertainty and risk, including but not limited to risks disclosed in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in the company's Form 20-F, 6-K, and other reports filed with the U.S. Securities and Exchange Commission. Additionally, the company will submit copies of the formal documents related to the transaction in a Form 6-K, which investors can access at www.sec.gov.

Forward-looking statements inherently involve risks, uncertainties, and other factors beyond the company's control or ability to predict. While the company believes that the expectations expressed in these forward-looking statements are reasonable, there is no assurance that they will ultimately be realized. The company cautions investors that actual results may significantly differ from those expected and encourages investors to consult the company's other filings with the SEC to understand other factors that may affect future performance.

Except as required by law, the company is under no obligation to publicly update or revise any forward-looking statements concerning future events or changes in the environment.