DDC Enterprise (DDC) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with primary operations in China, offering ready-to-heat, ready-to-cook, ready-to-eat, and plant-based meal products, targeting Millennial and Gen Z consumers.

• Employs an omni-channel sales strategy, leveraging both online and offline distribution, and is expanding internationally, including the U.S. and Southeast Asia.

• Owns multiple brands and pursues growth through acquisitions, with recent U.S. acquisitions such as Nona Lim and Yai's Thai.

• Adopted a Bitcoin treasury strategy in 2025, accumulating 1,383 bitcoins as of January 2026, viewing Bitcoin as a long-term store of value and hedge against inflation.

• Provides advertising services and content-driven marketing, utilizing social media and KOLs to build brand awareness.

Financial performance and metrics

• FY2024 revenue was RMB273.3 million (US$37.4 million), up 33% from FY2023; gross margin increased to 28.7% from 25.0%.

• Net loss for FY2024 was RMB157.0 million (US$21.5 million), with negative operating cash flow of RMB112.9 million.

• For the six months ended June 30, 2025, revenue was RMB111.9 million (US$15.6 million), with a net profit of RMB37.1 million (US$5.2 million), driven by improved margins and fair value gains on Bitcoin.

• As of June 30, 2025, cash and cash equivalents were RMB48.4 million (US$6.8 million); short-term investments were RMB131.3 million (US$18.3 million).

• Accumulated deficit as of December 31, 2024 was RMB1.81 billion, raising substantial doubt about the company's ability to continue as a going concern.

Use of proceeds and capital allocation

• The company will not receive any proceeds from the resale of shares in this offering; all proceeds go to the selling shareholder.

• Proceeds from recent financings and equity lines are allocated primarily to Bitcoin purchases as part of the treasury strategy.

• No dividends have been declared or paid; all earnings are retained for business development and expansion.