DDC announces record-breaking financial report for the first half of 2025, treasury strategy BTC yield reaches 1,798%

Financial Report Highlights:

· DDC achieved comprehensive profitability, recording its highest-ever gross margin and net profit

· Launched Bitcoin treasury strategy, holding a cumulative total of 1,008 BTC as of August 31, 2025, with a BTC return rate of 1,798%

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

Management Commentary

"The first half of 2025 was a pivotal period for DDC," said Norma Chu, Founder, Chairwoman, and CEO of DDC. "DDC started as a content-driven Asian gourmet platform and has now grown into a portfolio of beloved ready-to-eat consumer brands. In the first six months of 2025, DDC achieved profitability, recording a record 33.4% gross margin and $5.2 million in net profit. Our core operating business is at its strongest in history, and we expect to maintain growth momentum in the second half of the year."

Norma Chu continued: "In addition, 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, completed a historic $528 million financing with top institutional investors, and made nine BTC purchases. As of the end of August, our treasury holdings have reached 1,008 BTC, with a BTC return rate of 1,798% since our first purchase."

Chu concluded: "DDC's competitive advantage in Bitcoin treasury comes from our deep reach into China's vast and underdeveloped investor base, as well as our strong and 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 clear: to lead this emerging track, hold 10,000 BTC by the end of 2025, and become one of the top three treasury companies in the world within three years."

Financial Summary for the First Half of 2025

Unless otherwise specified, all data below are compared with the first half of 2024:

Total revenue was $15.6 million, down 9.4% year-on-year, mainly due to the company's strategic exit from loss-making US operations. Revenue from domestic China operations increased by 7.5% year-on-year, mainly driven by higher sales volumes in China.

Gross profit was $5.2 million, up 16.9% year-on-year, benefiting from strict supply chain optimization and lower raw material costs due to deflation in the Chinese market.

Operating expenses were $3.2 million, down 60.5% year-on-year, mainly due to the exit from loss-making US operations and strict cost control across the 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 above factors and an unrealized gain of $3.8 million from the fair value of digital assets.

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

Bitcoin Business Summary for the First Half of 2025

BTC Return Rate KPI: Achieved a 367% BTC return rate in the first half of 2025, with a cumulative return rate of 1,798% since the first 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 from the fair value of digital assets.

Capital Markets 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 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 an additional drawdown facility of up to $275 million).

Received an additional $2 million in private placement investment from Anson Funds, as well as a $200 million equity credit line.

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

As of September 4, 2025, DDC had used $53 million of its $528 million strategic financing to purchase Bitcoin. The $275 million convertible bond facility and $200 million equity credit line with Anson Funds remain unused. In addition, as of the same date, the company had not yet used the $500 million universal registration quota.

Earnings Conference Call

DDC will hold an earnings conference call today at 8:00 a.m. US Eastern Time. The meeting will interpret the semi-annual results for the period ended June 30, 2025, and provide business updates on the company's recent strategic developments.

Date: September 4, 2025

Time: 8:00 a.m. US Eastern Time

Conference Link:

Participants wishing to join by phone must register using the above conference call registration link. Upon completion of 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 about 5 minutes early.

About DDC Enterprise Limited (NYSE: DDC)

DDC Enterprise Limited (NYSE: DDC) is leading the revolution in corporate Bitcoin treasuries while maintaining its roots as the world's leading Asian gourmet platform. The company has strategically positioned Bitcoin as its core reserve asset and is actively executing a bold and accelerating accumulation strategy. While continuously expanding its portfolio of food and beverage brands, DDC has also become a pioneer among listed companies in incorporating Bitcoin into its financial architecture.

Notice Regarding Forward-Looking Statements