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 Millennials and Gen Z consumers.

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

• Owns multiple brands and pursues growth through acquisitions, focusing on Asian food and cooking categories and expanding its sales network.

• In May 2025, adopted a Bitcoin treasury strategy, accumulating Bitcoin as a primary reserve asset and integrating digital assets into capital management.

Financial performance and metrics

• For the year ended December 31, 2024, total revenue was RMB273.3 million (US$37.4 million), a 33% increase from 2023; gross margin rose to 28.7% from 25.0%.

• Net loss for 2024 was RMB157.0 million (US$21.5 million), with negative cash flows from operations of RMB112.9 million (US$15.5 million).

• For the six months ended June 30, 2025, revenue was RMB111.9 million (US$15.6 million), down 8.9% year-over-year, but gross margin improved to 33.4%.

• As of June 30, 2025, held 1,083 bitcoins at an average price of $108,726 per bitcoin.

• 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 offering is a resale by selling shareholders; the company will not receive any proceeds from the sale of shares.

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

• Capital allocation emphasizes Bitcoin accumulation, business expansion, and cost control.