DDC Chairwoman and CEO's Letter to Shareholders
DDC (DDC) reported 1H26 revenue of $20.2 million, up 29% year over year, with its core food business generating $1.2 million of positive adjusted EBITDA and a strengthened balance sheet.
Rhea-AI Summary
DDC (DDC) reported 1H26 revenue of $20.2 million, up 29% year over year, with its core food business generating $1.2 million of positive adjusted EBITDA and a strengthened balance sheet.
Gross profit rose 17.5% to $6.1 million. GAAP net loss was $38.4 million, which the company attributes mainly to non-cash Bitcoin mark-to-market adjustments that did not involve operating cash outflows. Cash and short-term investments totaled $21.6 million, and net debt stood at $10.2 million as of June 30, 2026.
Working capital improved from negative $12.2 million at year-end 2025 to positive $39.4 million, while shareholders' equity increased 154% year on year to $180.8 million. The company held 2,899 Bitcoin, up 145% since the start of 2026, and continues building an AI-based treasury platform. On July 1, 2026, the board authorized a share repurchase program of up to $10 million or 20% of outstanding Class A shares over 18 months.
Positive
- Revenue grew 29% year over year to $20.2 million in 1H26
- Gross profit increased 17.5% to $6.1 million in 1H26
- Core food business produced positive adjusted EBITDA of $1.2 million in 1H26
- Working capital swung from -$12.2 million to $39.4 million, a $51.6 million improvement
- Shareholders' equity rose 154% year on year to $180.8 million
- Bitcoin holdings increased 145% in 2026 to 2,899 BTC
- Board approved a share repurchase authorization of up to $10 million or 20% of Class A shares over 18 months
Negative
- GAAP net loss reached $38.4 million in 1H26 due mainly to Bitcoin mark-to-market adjustments
- Company still carries net debt of $10.2 million as of June 30, 2026
- Existing convertible note and Bitcoin-collateralized financing remain in place pending planned capital structure changes
News Explained
DDC is pursuing, not yet completing, financing intended to retire its convertible note and reduce collateralized borrowing; terms and dilution remain undisclosed.
The September 2 letter says DDC is pursuing financing alternatives whose intended uses include Bitcoin purchases, retiring its convertible note, reducing Bitcoin-collateralized borrowing, and providing operating flexibility.
Because the company expects to provide more information, this is a financing initiative under development rather than a committed financing with disclosed proceeds or terms.
Retiring the existing convertible instrument is presented as a way to eliminate its ongoing dilution mechanics, but the letter gives no size, pricing, consideration, or conversion terms for the potential new financing, so its ownership and liquidity effects cannot yet be assessed.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 05 | mid-year update | Positive | +0.0% | Operating growth and Bitcoin treasury update received no reported 24-hour price reaction. |
| Aug 04 | results guidance | Positive | +10.2% | Preliminary first-half revenue and Adjusted EBITDA guidance exceeded prior-year operating levels. |
| May 27 | Bitcoin acquisition | Positive | +3.3% | Additional Bitcoin increased treasury holdings and per-share Bitcoin exposure without new shares. |
| May 21 | Bitcoin acquisition | Positive | -1.7% | A 200-Bitcoin acquisition increased holdings and per-share exposure without dilution. |
| Apr 21 | AI platform launch | Positive | -7.8% | DDC launched an AI platform designed to manage its corporate Bitcoin reserve. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
DDC’s positive operating and treasury updates produced mixed market responses, with both aligned gains and divergent declines.
Key Terms
adjusted ebitda financial
mark-to-market adjustments financial
convertible note financial
bitcoin-collateralized financing financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DDC Enterprise announces 1H26 results with strong revenue growth, positive adjusted EBITDA, and strengthening of balance sheet
NEW YORK, Sept. 02, 2026 (GLOBE NEWSWIRE) -- DDC Enterprises, Ltd. (NYSE American: DDC), (“DDC,” or the “Company”), a leading multi-brand Asian consumer food company with a growing strategic bitcoin treasury, today issued a corporate update in a Letter to Shareholders from Founder, Chairwoman, and CEO Norma Chu.
Dear Valued Shareholders,
The first half of 2026 delivered meaningful progress in our operating business and a significant expansion of our Bitcoin treasury. This letter provides context on both, and directly addresses recent market volatility.
Operating business results
Our Asian food platform delivered revenue of
We ended the first half of 2026 with total cash and short-term investments of
Balance sheet position
Our net debt position was
Our leverage remains modest relative to the value of our Bitcoin treasury. A portion of our holdings serves as collateral for existing secured financing, as disclosed in our periodic filings, with the majority of our position unencumbered and held with qualified third-party custodians.
Bitcoin treasury
We held 2,899 Bitcoin as of the date of this letter, up
In parallel, we continue to develop our AI treasury operating platform, which supports the monitoring, management and optimization of our Bitcoin holdings. This infrastructure investment underpins our capability to manage the treasury at institutional scale.
Dishing Up Bitcoin
To advance broader Bitcoin literacy and community engagement, we launched Dishing Up Bitcoin, an original video series that combines conversations about the Bitcoin economy with the cooking traditions at the heart of DDC's food business. The series brings together Bitcoin builders, investors and thought leaders in a distinctive format that reflects the intersection of our two operating dimensions. We view this initiative as a natural extension of our brand and a contribution to the maturation of the Bitcoin ecosystem. Since launch, we have received a strong response from the community. New episodes are available on our YouTube channel and X account.
Capital structure initiatives
Throughout 2026, management has pursued new financing alternatives designed to modernize DDC's capital structure and support our long-term strategy. The proceeds of this initiative are intended to fund continued Bitcoin treasury accumulation, retire our outstanding convertible note, reduce reliance on Bitcoin-collateralized financing and provide further operating flexibility for the business.
Our objective is to eliminate the ongoing dilution mechanics associated with the existing convertible instrument and establish a capital structure better aligned with the interests of long-term shareholders. We expect to have more to share on this initiative in the coming weeks.
Share repurchase authorization
On July 1, 2026, our Board authorized a share repurchase program of up to
Our focus
Right now, our energy is focused on building sustainable value. That means growing our core business, strengthening our balance sheet, and managing our cash flow through every kind of environment, all while maintaining strict discipline around our Bitcoin treasury. We will not change course based on daily price volatility or short-term market pressures. The Board has established a clear multi-year plan and our team is focused entirely on staying the course.
Thank you
I want to thank our team, our operating partners, our advisors and our shareholders who have supported the company through the recent Bitcoin bear market. The pieces are in place, the operating business is performing and our balance sheet is stronger than it has been in years.
Sincerely,
Norma Chu
Founder, Chairwoman and Chief Executive Officer
DDC Enterprise Limited
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.
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 forward-looking statements include those related to financial results and performance, business prospects, accumulation of Bitcoin, anticipated benefits of various capital allocation tools, and the Company’s goals and future activity. These statements are subject to uncertainties and risks including, but not limited to, the risk factors discussed in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 20-F, 6-K and other reports, including a Form 6-K which with copies of the definitive documents related to the above transactions, to be filed with the Securities and Exchange Commission (“SEC”) and available at www.sec.gov. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law.
For Investor Relation & Media
pr@ddc.xyz
