DDC Enterprise (DDC) investor relations material

Executive summary

• Achieved profitability in H1 2025, with record gross margin of 33.4% and net income of $5.2M, reversing a prior year loss and marking a 200.5% year-over-year increase.

• Strategic exit from U.S. operations due to tariff uncertainty, focusing on profitable Asia business and Bitcoin strategy, resulting in cost reductions and streamlined operations.

• Launched a Bitcoin treasury strategy, accumulating 1,008 BTC by August 31, 2025, and targeting 10,000 BTC by year-end to become a top-three global corporate Bitcoin treasury.

Financial highlights

• Revenue for H1 2025 was $15.6M, down 9.4% year-over-year due to the U.S. exit, while core China business revenue grew 7.5%.

• Gross profit rose 16.9% to $5.2M, with gross margin improving by 750 basis points to 33.4%.

• Operating expenses dropped 60.5% year-over-year to $3.2M, reflecting cost controls and U.S. exit.

• Net income reached $5.2M, a turnaround from a $5.2M loss, aided by a $3.8M unrealized gain in digital assets.

• Maintained liquidity with $25.1M in cash, cash equivalents, and short-term investments as of June 30, 2025.

Outlook and guidance

• Expects continued growth in the core business and further expansion into Southeast Asia, leveraging Bitcoin treasury strategy.

• Plans to accumulate 10,000 BTC by year-end and become a top-three public Bitcoin treasury company within three years.

• Anticipates contributions from a new joint venture in H2 2025, with potential for additional JVs or M&A.

• Strategic focus on deploying new capital to Bitcoin stacking, reducing risk of forced Bitcoin sales.