DDC Enterprise (DDC) Registration Filing summary

Company overview and business model

• Operates as a Cayman Islands holding company with principal operations in China and expanding internationally, focusing on content-driven consumer brands in ready-to-heat, ready-to-cook, ready-to-eat, and plant-based meal products, as well as advertising services.

• Adopted a Bitcoin treasury strategy, accumulating bitcoin as a primary reserve asset and integrating digital assets into capital management.

• Business model includes omni-channel sales, end-to-end product development, and a multi-brand acquisition strategy targeting international expansion.

Financial performance and metrics

• Reported total revenue of RMB273.3 million (US$37.4 million) for the year ended December 31, 2024, a 33% increase from the prior year.

• Gross margin improved to 28.7% in 2024 from 25.0% in 2023.

• Incurred net losses in 2022, 2023, and 2024, with negative cash flows from operations and adjusted EBITDA losses each year.

• As of December 31, 2024, held 368 bitcoins at an aggregate purchase price of $33.3 million.

Use of proceeds and capital allocation

• Proceeds from equity and debt financings are primarily allocated to acquiring additional bitcoin for the corporate treasury.

• Funds may also be used for strategic expansion in the U.S. and Southeast Asia, and for potential mergers and acquisitions.