DDC Enterprise Limited Reports 29% Revenue Growth, Positive Adjusted EBITDA and Balance Sheet Strengthening for First Half 2026

About this update from Ddc Enterprise Limited

Revenue increased 29% year over year to US$20.2 million, with gross profit increasing 17.5% to US$6.1 million Core food business delivered positive non-GAAP Adjusted EBITDA of US$1.2 million Working capital improved to positive US$39.4 million as of June 30, 2026, from negative US$12.2 million as of December 31, 2025 Total shareholders' equity attributable to DDC Enterprise Limited grew to US$180.8 million as of June 30, 2026, from approximately US$71.2 million as of December 31, 2025 DDC held 2,899 Bitcoin as of the date of this press release, compared with 1,181 Bitcoin as of December 31, 2025 NEW YORK, Sept. 02, 2026 (GLOBE NEWSWIRE) -- DDC Enterprise Limited (NYSEAMERICAN: DDC) ("DDC" or the "Company"), a global Asian food platform and digital asset treasury company, today released its unaudited financial results for the six months ended June 30, 2026. The results reflect strong growth and improving operating leverage in DDC's core Asian food business, continued execution of its Bitcoin treasury strategy and an expanded capital allocation framework. First Half 2026 Financial Highlights RMB and US$ in actual amounts; figures below are reproduced from the unaudited financial statements and non-GAAP reconciliation in the Company's Form 6-K.   Six Months Ended June 30, 2025 Six Months Ended June 30, 2026 Six Months Ended June 30, 2026   RMB RMB US$ Revenue 111,909,938   136,747,757   20,154,126   Gross profit 37,334,808   41,538,184   6,121,971   Total operating expenses (22,850,802)   (55,414,415)   (8,167,075)   Income/(loss) from operations 14,484,006   (13,876,231)   (2,045,104)   Net income/(loss) 37,133,644   (260,644,187)   (38,414,200)   Adjusted EBITDA 18,504,237   8,140,470   1,199,756   Management Commentary "The first-half 2026 results mark meaningful progress on our dual mandate strategy," said Norma Chu, Founder, Chairwoman and Chief Executive Officer of DDC Enterprise Limited. "Our core Asian food business delivered strong revenue growth and achieved positive Adjusted EBITDA, demonstrating tangible operational improvement in our primary operating franchise. At the same time, we substantially strengthened our balance sheet during the period. Working capital moved from negative $12.2 million at year-end 2025 to positive $39. 4 million as of June 30, 2026, and total shareholders' equity attributable to DDC grew significantly. Meanwhile, we maintained our strategic framework under which Bitcoin serves as a core corporate reserve asset, complementing our food business. "GAAP results are subject to volatility from non-cash Bitcoin mark-to-market accounting adjustments. We advanced our Bitcoin treasury objective, holding 2,899 Bitcoin as of the date of this press release. Together with the balance sheet improvements achieved this period, we now have multiple capital allocation levers to build long-term shareholder value. We will continue balancing investment in food business scaling with prudent treasury decisions while safeguarding corporate liquidity." First Half 2026 Financial Summary All comparisons are with the first half of 2025 unless otherwise noted. Revenue:  Revenue increased 29% to US$20.2 million, driven by broader retail penetration and expanded distribution reach for DDC's culinary brand portfolio. Gross profit:  Gross profit increased 17.5% to US$6.1 million. Gross margin:  Gross margin was 30.4%, compared with 33.4% in the prior year period. The change reflected expansion into higher volume sales channels to support top line scale. Adjusted EBITDA:  The core food business delivered positive non-GAAP Adjusted EBITDA of US$1.2 million. GAAP net loss:  Net loss was US$38.4 million, largely driven by a US$34.3 million non-cash unrealized fair value loss on digital assets. The accounting adjustment did not represent an operating cash outflow from the core food business. Liquidity:  As of the date of this press release, cash and cash equivalents were US$2.5 million and, together with short term investments, totaled US$21.6 million. Working capital : Working capital improved materially from negative US$12.2 million as of December 31, 2025 to positive US$39.4 million as of June 30, 2026, significantly strengthening the Company’s financial resources for continued growth. Net debt:  Net debt was US$10.2 million as of June 30, 2026, compared to US$60.6 million as of December 31, 2025. First Half 2026 Bitcoin Summary Bitcoin holdings:  DDC held 2,899 Bitcoin as of the date of this press release, compared with 1,181 Bitcoin as of December 31, 2025, representing a 145% increase since the start of 2026. Treasury discipline:  Future Bitcoin acquisitions will be evaluated against market conditions, balance sheet liquidity, risk parameters and expected per share value accretion. Capital Allocation Update On July 1, 2026, DDC's Board of Directors authorized a share repurchase program of up to US$10 million or 20% of the Company's outstanding Class A ordinary shares, whichever is lower, over a period of up to 18 months. The program gives management flexibility to repurchase shares when such action offers attractive risk-adjusted returns for shareholders. The authorization does not obligate the Company to repurchase any shares and may be modified, suspended or terminated by the Board at any time. About DDC Enterprise Limited DDC Enterprise Limited (NYSEAMERICAN: DDC) is participating proactively in the corporate Bitcoin treasury evolution while maintaining its foundation as a leading global Asian food platform. The Company has strategically positioned Bitcoin as a core reserve asset while continuing to expand its portfolio of culinary brands. DDC is at the forefront of public companies integrating Bitcoin into their financial architecture. For more information, visit www.ddc.xyz . Use of Non-GAAP Financial Measures Adjusted EBITDA is a Non-GAAP financial measure. The Company uses Adjusted EBITDA, Non-GAAP financial measures, in evaluating its operating results and for financial and operational decision making purposes. The Company defines Adjusted EBITDA as net income/(loss) excluding interest expense, interest income, income tax expense, impairment losses, depreciation and amortization, non-cash mark-to-market fair value adjustments associated with financial instruments, including Bitcoin holdings, and share based compensation. Adjusted EBITDA should not be considered in isolation or as a substitute for net income/(loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. For more information on the Non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and Non-GAAP Results” set forth in this announcement. 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 a forward-looking statements include those related to the Company's financial performance and results, business prospects, Bitcoin accumulation strategy, share-repurchase program, capital-allocation plans and its goals, strategy and future activity. These statements are subject to uncertainties and risks, including the risk factors discussed in the Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations sections of the Company's Forms 20-F, 6-K and other reports filed with the U.S. Securities and Exchange Commission ("SEC") and available at www.sec.gov. It is inherent in forward-looking statements that there are 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 investors that such expectations will prove correct. Actual results may differ materially from anticipated results. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events, circumstances or changes in expectations, except as required by law.   Media and Investor Contacts Investor and Media Relations: [email protected] DDC ENTERPRISE LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)           For the Six Months Ended June 30，     202 5   202 6     RMB   RMB     US$                                 Product revenues     111,909,938       136,747,757         20,154,126                         C ost of products     (74,575,130 )     (95,209,573 )       (14,032,155 )                       Gross profit     37,334,808       41,538,184         6,121,971                         Operating expenses:                     Fulfilment expenses     (2,877,103 )     (4,042,980 )       (595,862 ) Sales and marketing expenses     (2,517,469 )     (4,820,391 )       (710,438 ) General and administrative expenses     (14,304,907 )     (24,796,325 )       (3,654,526 ) Share based compensation     (3,151,323 )     (21,754,719 )       (3,206,249 ) Total operating expenses     (22,850,802 )     (55,414,415 )       (8,167,075 )                       Income/(loss) from operations     14,484,006       (13,876,231 )       (2,045,104 )                       Interest expenses     (1,173,379 )     (15,318,820 )       (2,257,715 ) Interest income     675,860       6,208,417         915,007   Foreign currency exchange loss, net     (5,560 )     -         -   Other income     1,162,890       2,172,663         320,211   Unrealized gain/(loss) on digital assets     27,566,664       (232,541,989 )       (34,272,447 )                       Income/(loss) before income tax expenses     42,710,481       (253,355,960 )       (37,340,048 )                       Income tax expense     (5,576,837 )     (7,288,227 )       (1,074,152 ) Net income/(loss)     37,133,644       (260,644,187 )       (38,414,200 )                       Net income/(loss) attributable to ordinary shareholders     37,133,644       (260,644,187 )       (38,414,200 )                       Net income attributable to non-controlling interest     8,990,337       8,745,872         1,288,982                         Net income/(loss) attributable to DDC Enterprise Limited     28,143,307       (269,390,059 )       (39,703,182 ) DDC ENTERPRISE LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) - (Continued)               For the Six Months Ended June 30，       202 5     202 6       RMB     RMB     US$                       Other comprehensive income , net of nil income taxes:                   Foreign currency translation adjustment, net of nil income taxes     (4,334,444 )     (7,916,256 )       (1,166,712 )   Net unrealized gains on available-for-sale debt Securities     8,485,964       (972,717 )       (143,361 )                             Total other comprehensive income     4,151,520       (8,888,973 )       (1,310,073 )                             Comprehensive income/(loss) :     41,285,164       (269,533,160 )       (39,724,273 )   Comprehensive income attributable to non-controlling interests     8,990,337       8,745,872         1,288,982                               Comprehensive income/(loss) attributable to DDC Enterprise Limited     32,294,827       (278,279,032 )       (41,013,255 )                             Net income/(loss) per ordinary share                         — Basic and diluted – Class A     7.41       (7.91 )       (1.17 )   — Basic and diluted – Class B     -       -         -                               Weighted average number of ordinary shares outstanding used in computing net loss per ordinary share                         — Basic and diluted – Class A     3,798,369       34,072,617         34,072,617     — Basic and diluted – Class B     875,000       1,750,000         1,750,000     DDC ENTERPRISE LIMITED CONSOLIDATED BALANCE SHEETS     As of     As of       December 31,     June 30,       202 5     202 6       (Audited)     (Unaudited)       RMB     RMB     US$                       ASSETS                   Current assets                   Cash and cash equivalents     21,121,206       4,925,383       725,912   Restricted cash     16,828       -       -   Short-term investment     130,400,312       129,427,595       19,075,267   Accounts receivable, net     41,564,871       40,894,396       6,027,088   Inventories     8,229,291       9,344,044       1,377,142   Prepayments and other current assets     383,805,123       402,771,272       59,361,139                             Total current assets     585,137,631       587,362,690       86,566,548                             Non-current assets                         Property, plant and equipment, net     303,325       226,016       33,311   Operating lease Right-of-use assets     8,581,133       7,474,341       1,101,582   Intangible assets, net     1,610,713       1,335,790       196,871   Goodwill     4,973,027       4,973,027       732,933   Digital assets     730,150,140       1,098,494,475       161,898,052   Other non-current assets     64,814,066       73,307,126       10,804,133                             Total non-current assets     810,432,404       1,185,810,775       174,766,882                             Total assets     1,395,570,035       1,773,173,465       261,333,430   DDC ENTERPRISE LIMITED CONSOLIDATED BALANCE SHEETS - (Continued)                   As of     As of       December 31,     June 30,       202 5     202 6       (Audited)     (Unaudited)       RMB     RMB     US$                       LIABILITIES AND SHAREHOLDERS’ EQUITY                   Current liabilities                   Short-term bank borrowings     37,430,000       35,050,800       5,165,849   Current portion of long-term bank borrowings     549,012       608,033       89,613   Accounts payable     25,524,921       27,373,609       4,034,371   Contract liabilities     13,977,338       11,645,751       1,716,371   Shareholder loans, at amortized cost     23,207,757       21,449,891       3,161,323   Amounts due to related parties     8,160,511       5,413,606       797,867   Accrued expenses and other current liabilities     557,130,576       217,319,173       32,028,882   Current portion of lease liabilities     2,047,880       1,392,622       205,247                             Total current liabilities     668,027,995       320,253,485       47,199,523                             Non-current liabilities                         Long-term bank borrowings     3,876,918       3,486,980       513,917   Operating lease liabilities     6,405,503       5,942,889       875,873   Shareholder loans, at amortized cost     16,483,576       16,483,576       2,429,378   Convertible loans, at amortized cost     137,501,657       126,228,857       18,603,831   Deferred tax liabilities     1,264,873       1,264,873       186,419   Other non-current liabilities     10,405,554       10,405,554       1,533,589                             Total non-current liabilities     175,938,081       163,812,729       24,143,007                             Total liabilities     843,966,076       484,066,214       71,342,530   DDC ENTERPRISE LIMITED CONSOLIDATED BALANCE SHEETS - (Continued)                   As of     As of       December 31,     June 30,       202 5     202 6       (Audited)     (Unaudited)       RMB     RMB     US$                       Shareholders’ equity                   Class A ordinary shares (US$0.4 par value per share, 200,000,000 shares and 200,000,000 shares authorized as of December 31, 2025 and June 30, 2026, respectively; 23,281,620 shares and 45,627,607 shares issued and outstanding as of December 31, 2025 and June 30, 2026, respectively)     65,584,619       126,326,916         18,618,284   Class B ordinary shares (US$0.016 par value per share, 1,750,000 shares and 1,750,000 shares authorized, issued and outstanding as of December 31, 2025 and June 30, 2026, respectively)     196,479       196,479         28,957   Convertible Preferred Shares     230,544,640       -         -   Additional paid-in-capital     2,498,773,335       3,675,612,130         541,718,196   Accumulated deficit     (2,171,283,787 )     (2,440,673,846 )       (359,710,814 ) Accumulated other comprehensive loss     (125,758,629 )     (134,647,602 )       (19,844,601 ) Total shareholders’ equity attributable to DDC Enterprise Limited     498,056,657       1,226,814,077         180,810,022                             Non-controlling interest     53,547,302       62,293,174         9,180,878                             Total shareholders’ equity     551,603,959       1,289,107,251         189,990,900                             Total liabilities and shareholders’ equity     1,395,570,035       1,773,173,465         261,333,430   DDC ENTERPRISE LIMITED UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS       For the Six months Ended June 30,       202 5   202 6     202 6       RMB   RMB     US$   Net income/(loss)     37,133,644       (260,644,187 )       (38,414,200 ) Add:                       Income tax expense     5,576,837       7,288,227         1,074,152   Interest expenses     1,173,379       15,318,820         2,257,715   Interest income     (675,860 )     (6,208,417 )       (915,007 ) Foreign currency exchange loss, net     5,560       -         -   Other income     (1,162,890 )     (2,172,663 )       (320,211 ) Unrealized (gain)/loss on digital assets     (27,566,664 )     232,541,989         34,272,447   Depreciation and amortization     868,908       261,982         38,611   Share-based compensation     3,151,323       21,754,719         3,206,249   Adjusted EBITDA     18,504,237       8,140,470         1,199,756  

View stock analysis, news, and events for Ddc Enterprise Limited