The Conversation (0)
- 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
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 purchase 1 (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 :
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 (NYSE: 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250904793987/en/
Media & Investor Contacts
Investor Relations
Orange Group | Yujia Zhai
ddc@orangegroupadvisors.com
Press and Media
pr@ddc.xyz
