- DDC achieves profitability, delivering record gross margins and net income
- Launched Bitcoin treasury strategy and reached 1,008 BTC or 1,798% BTC Yield(1) as of August 31, 2025(1)
NEW YORK--(BUSINESS WIRE)--September 04, 2025--
DDC Enterprise Limited (NASDAQ: DDC) ("DDC" or the "Company"), an Asian consumer-first company at the forefront of corporate Bitcoin acquisition and treasury management, today released its unaudited financial results for the six months ended June 30, 2025.
H1 2025 Financial Highlights
US$ / RMB in
millions Six Months Ended YoY
June 30, 2024 June 30, 2025 %
US$ RMB US$ RMB US$ RMB
------ ------- ------ ------- ------- -------
Revenue $17.2 $122.9 $15.6 $111.9 (9.4%) (8.9%)
Gross profit $4.5 $31.8 $5.2 $37.3 16.9% 17.5%
% of revenue 25.9% 25.9% 33.4% 33.4% 29.0% 29.1%
Operating expenses $8.1 $57.6 $3.2 $22.9 (60.5%) (60.3%)
Operating income $(3.6) $(25.8) $2.0 $14.5 155.9% 156.2%
Net income $(5.2) $(36.7) $5.2 $37.1 200.5% 201.1%
Management Commentary
"The first half of 2025 was transformational for DDC," said Norma Chu, Founder, Chairwoman and CEO of DDC. "DDC started as a content-driven Asian food platform and has since grown into a portfolio of beloved, ready-to-eat consumer brands. In the first six months of 2025, DDC turned profitable and delivered record high gross margin and net income of 33.4% and $5.2 million, respectively. Our core operating business is the strongest it has ever been and we expect continued growth into the second half of the year."
Ms. Chu continued, "In addition, we entered the Bitcoin treasury strategy space with conviction. In late May, we made our first purchase of BTC and outlined a structured plan for responsible accumulation. Since then, we have scaled quickly, executing a historical $528 million financing with premier institutional investors and completed nine separate BTC purchases, bringing our treasury holdings to 1,008 BTC as of the end of August, representing a BTC Yield of 1,798% since the first purchase(1) ."
Ms. Chu concluded, "DDC's Bitcoin treasury competitive advantage lies in our extensive reach into China's vast, underpenetrated investor base and a profitable core business that strengthens our access to capital markets. This foundation enables sustainable Bitcoin accumulation and ongoing investment in growth. Our goal is clear: lead this emerging category, reach 10,000 BTC by the end of 2025 and establish ourselves as one of the world's top three treasury company within three years."
H1 2025 Financial Summary
All amounts compared to H1 2024 unless otherwise noted
-- Total revenue of US$15.6 million was down 9.4% year-over-year due to
our strategic exit from loss-making U.S. operations. Domestic China
business revenue grew 7.5% year-over-year, driven by increase in sales
volume in China.
-- Gross profit of US$5.2 million was up 16.9% year-over-year, driven by
our stringent supply chain optimization and deflation in China providing
raw material cost savings.
-- Operating expenses of US$3.2 million was down 60.5% year-over-year due
to exit of loss-making US operations and stringent cost control across
the entire business.
-- Net Income was US$5.2 million vs. US$(5.2) million driven by the above
as well as a $3.8 million unrealized gain in fair value of digital
assets.
-- Cash and cash equivalents and short-term investments were US$25.1
million as of June 30, 2025.
H1 2025 Bitcoin Summary
-- "BTC Yield" KPI: Achieved BTC Yield of 367% in H1 and 1,798% since
first purchase1 (as of August 31, 2025).
-- Digital Assets: As of June 30, 2025, the Company's digital assets were
comprised of approximately 138 BTC. During the six months ended June 30,
2025, the Company recorded an unrealized gain in the fair value of
digital assets of $3.8 million.
H1 2025 Capital Markets Summary
-- Closed an aggregate of $528 million in strategic financing for Bitcoin
treasury strategy:
-- $26 million strategic PIPE investment from premier Bitcoin and
digital asset investors, which included conversion of outstanding
debt to further strengthen the balance sheet.
-- $25 million by issuance of first tranche of convertible notes
(with committed additional capacity of up to $275 million
available in subsequent drawdowns) with Anson Funds.
-- $2 million in a private placement from Anson Funds in addition
to a $200 million equity line of credit.
-- Filed a $500 million universal shelf registration statement on Form F-3
with the U.S. Securities and Exchange Commission (SEC).
-- As of September 4, 2025, DDC has utilized a total $53 million of its
$528 million strategic financing for its Bitcoin purchases. $275 million
of convertible note and $200 million equity line of credit with Anson
Funds still remains undrawn. In addition, as of September 4, 2025, DDC
has not utilized any of the $500 million universal shelf.
Earnings Conference Call
DDC will host a conference call today at 8:00 AM EST. The call will address the results of the six months ended June 30, 2025, as well as provide a business update on the Company's strategies for the near-term future.
-- Date: September 4, 2025
-- Time: 8:00 AM EST
-- Participant Call Links:
-- Live Webcast: Link
-- Participant Call Registration: Link
Participants wishing to join the conference call by phone should register using the Participant Call Registration link provided above. After completing the registration, the participants will receive an email with the necessary details to access the call including dial-in number, passcode, and PIN. To ensure a timely start, the Company encourages all callers to connect about 5 minutes before the scheduled time.
About DDC Enterprise Limited $(DDC)$
DDC Enterprise Limited (NYSE: DDC) is spearheading the corporate Bitcoin treasury revolution while maintaining its foundation as a leading global Asian food platform. The Company has strategically positioned Bitcoin as a core reserve asset, executing a bold and accelerating accumulation strategy. While continuing to grow its portfolio of culinary brands, DDC is now at the vanguard of public companies integrating Bitcoin into their financial architecture.
Caution Regarding Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate, " "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. Examples of forward-looking statements include those related to business prospects, accumulation of Bitcoin, and the Company's goals and future activity under the financing transactions described above, including the statements on the closings of the offerings and the satisfaction of closing conditions and use of proceeds in the offerings. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 20-F, 6-K and other reports, including a Form 6-K which with copies of the definitive documents related to the above transactions, to be filed with the Securities and Exchange Commission ("SEC") and available at www.sec.gov. It is also inherent in forward-looking statements for there to be 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 assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
DDC ENTERPRISE LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2024 2025
------------- -----------------------
RMB RMB US$
ASSETS
Current assets
Cash and cash
equivalents 60,957,156 48,375,196 6,752,917
Short-term investment 130,055,727 131,338,206 18,334,107
Accounts receivable,
net 33,146,088 25,403,144 3,546,142
Inventories 4,719,804 3,055,943 426,593
Prepayments and other
current assets 148,267,234 205,716,329 28,716,892
------------ ----------- ----------
Total current assets 377,146,009 413,888,818 57,776,651
------------ ----------- ----------
Non-current assets
Long-term investments 8,490,163 8,490,163 1,185,181
Property, plant and
equipment, net 573,775 475,348 66,356
Operating lease
Right-of-use assets 5,154,258 4,396,733 613,760
Intangible assets,
net 10,894,989 10,013,148 1,397,782
Goodwill 26,638,707 26,638,707 3,718,620
Other non-current
assets 56,319,547 78,746,814 10,992,631
Digital assets - 102,183,472 14,264,263
------------ ----------- ----------
Total non-current
assets 108,071,439 230,944,385 32,238,593
------------ ----------- ----------
Total assets 485,217,448 644,833,203 90,015,244
============ =========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current liabilities
Short-term bank
borrowings 50,500,000 47,440,000 6,622,369
Current portion of
long-term bank
borrowings 792,548 514,622 71,838
Accounts payable 24,308,952 24,836,371 3,467,024
Contract liabilities 12,377,171 11,178,152 1,560,410
Shareholder loans, at
amortized cost 84,342,862 66,017,666 9,215,711
Amounts due to
related parties 491,089 491,089 68,553
Accrued expenses and
other current
liabilities 192,237,718 195,710,852 27,320,183
Current portion of
lease liabilities 2,037,862 1,652,552 230,687
Current portion of
finance lease
liabilities 29,847 29,847 4,166
Convertible loans, at
amortized cost 3,500,000 3,500,000 488,581
------------ ----------- ----------
Total current
liabilities 370,618,049 351,371,151 49,049,522
------------ ----------- ----------
Non-current
liabilities
Long-term bank
borrowings 4,463,550 4,509,229 629,464
Operating lease
liabilities 3,584,743 3,283,462 458,354
Convertible loans, at
fair value 10,076,081 23,473,345 3,276,753
Convertible loans,
at amortized cost -
Deferred tax
liabilities 3,798,357 3,174,500 443,143
Other non-current
liabilities 10,405,554 10,405,554 1,452,559
------------ ----------- ----------
Total non-current
liabilities 32,328,285 44,846,090 6,260,273
------------ ----------- ----------
Total liabilities 402,946,334 396,217,241 55,309,795
============ =========== ==========
DDC ENTERPRISE LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS -- (Continued)
December 31, June 30,
2024 2025
--------------- -----------------------------
RMB RMB US$
Shareholders'
equity
Class A ordinary
shares (US$0.4 par
value per share,
8,000,000 shares
and 200,000,000
shares authorized
as of December 31,
2024 and June 30,
2025, respectively;
3,150,169 shares
and 8,307,583
shares issued and
outstanding as of
December 31, 2024
and June 30, 2025,
respectively) 8,984,639 21,717,617 3,031,662
Class B ordinary
shares (US$0.016
par value per
share, 875,000
shares and
1,750,000 shares
authorized as of
December 31, 2024
and June 30, 2025,
respectively;
875,000 shares
issued and
outstanding as of
December 31, 2024
and June 30, 2025,
respectively) 96,589 96,589 13,483
Additional
paid-in-capital 1,984,763,325 2,097,090,031 292,742,480
Accumulated deficit (1,814,578,760) (1,786,435,453) (249,376,773)
Accumulated other
comprehensive loss (131,840,166) (127,688,646) (17,824,648)
-------------- --------------- ------------
Total shareholders'
equity attributable
to DDC Enterprise
Limited 47,425,627 204,780,138 28,586,204
-------------- --------------- ------------
Non-controlling
interest 34,845,487 43,835,824 6,119,245
-------------- --------------- ------------
Total shareholders'
equity 82,271,114 248,615,962 34,705,449
-------------- --------------- ------------
Total liabilities
and shareholders'
equity 485,217,448 644,833,203 90,015,244
============== =============== ============
DDC ENTERPRISE LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME
For the Six Months Ended June 30
2024 2025
------------ -------------------------
RMB RMB US$
Revenues:
Product revenues 122,513,685 111,909,938 15,622,025
Service revenues 385,031 - -
Total revenues 122,898,716 111,909,938 15,622,025
=========== ============ ===========
Cost of products (91,031,202) (74,575,130) (10,410,288)
Cost of services (81,873) - -
----------- ------------ -----------
Total cost of
revenues (91,113,075) (74,575,130) (10,410,288)
=========== ============ ===========
Gross profit 31,785,641 37,334,808 5,211,737
=========== ============ ===========
Operating
expenses:
Fulfilment
expenses (5,056,932) (2,877,103) (401,628)
Sales and
marketing
expenses (9,669,218) (2,517,469) (351,425)
General and
administrative
expenses (33,589,607) (14,304,907) (1,996,888)
Share based
compensation (9,240,373) (3,151,323) (439,908)
----------- ------------ -----------
Total operating
expenses (57,556,130) (22,850,802) (3,189,849)
=========== ============ ===========
(Loss)/income from
operations (25,770,489) 14,484,006 2,021,888
=========== ============ ===========
Interest expenses (8,488,238) (1,173,379) (163,797)
Interest income 1,419,568 675,860 94,346
Foreign currency
exchange
gain/(loss), net (7,375) (5,560) (776)
Other income 142,683 1,162,890 162,333
Changes in fair
value of digital
assets - 27,566,664 3,848,158
----------- ------------ -----------
(Loss)/income
before income tax
expenses (32,703,851) 42,710,481 5,962,152
=========== ============ ===========
Income tax expense (4,042,618) (5,576,837) (778,496)
----------- ------------ -----------
Net (loss)/income (36,746,469) 37,133,644 5,183,656
=========== ============ ===========
Net (loss)/income
attributable to
ordinary
shareholders (36,746,469) 37,133,644 5,183,656
=========== ============ ===========
Net income
attributable to
non-controlling
interest 4,404,877 8,990,337 1,255,003
----------- ------------ -----------
Net (loss)/income
attributable to
DDC Enterprise
Limited (41,151,346) 28,143,307 3,928,653
=========== ============ ===========
(1) Compared to the Company's first purchase on May 23, 2025.
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CONTACT:
Media & Investor Contacts
Investor Relations
Orange Group | Yujia Zhai
ddc@orangegroupadvisors.com
Press and Media
pr@ddc.xyz
(END) Dow Jones Newswires
September 04, 2025 07:00 ET (11:00 GMT)