DDC Enterprise Limited Reports 29% Revenue Growth, Positive Adjusted EBITDA and Balance Sheet Strengthening for First Half 2026
Net debt dropped to US$10.2 million and working capital turned positive at US$39.4 million by June 30, 2026.
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Rhea-AI Summary
DDC Enterprise (DDC) reported first half 2026 revenue of US$20.2 million, up 29% year over year, with gross profit rising 17.5% to US$6.1 million and its core food business generating positive non-GAAP Adjusted EBITDA of US$1.2 million.
GAAP net loss was US$38.4 million, compared with a profit in the prior-year period, largely due to a US$34.3 million non-cash unrealized fair value loss on digital assets. Gross margin declined to 30.4% from 33.4% as the company expanded into higher-volume channels. Working capital improved from negative US$12.2 million at December 31, 2025 to positive US$39.4 million at June 30, 2026, and net debt fell from US$60.6 million to US$10.2 million. Total shareholders’ equity attributable to DDC increased to US$180.8 million, from approximately US$71.2 million at year-end 2025. DDC held 2,899 Bitcoin as of the release date, up 145% from 1,181 at December 31, 2025. The board also authorized a share repurchase program of up to US$10 million or 20% of outstanding Class A shares over up to 18 months.
Positive
- Revenue US$20.2 million, up 29% year over year in H1 2026
- Core food business delivered positive Adjusted EBITDA of US$1.2 million
- Working capital improved from -US$12.2 million to +US$39.4 million
- Net debt reduced from US$60.6 million to US$10.2 million by June 30, 2026
- Shareholders’ equity attributable to DDC rose to US$180.8 million from about US$71.2 million
- Bitcoin holdings increased 145% to 2,899 BTC since December 31, 2025
- Board authorized up to US$10 million or 20% Class A share repurchase over 18 months
Negative
- H1 2026 GAAP net loss of US$38.4 million versus prior-year profit
- Gross margin declined to 30.4% from 33.4% year over year
- Total operating expenses rose to US$8.2 million (US$ equivalent) from prior period
- Unrealized loss on digital assets of US$34.3 million drove earnings volatility
- Share-based compensation increased to RMB 21.8 million (about US$3.2 million) in H1 2026
News Explained
DDC’s unaudited first-half report shows Class A shares issued and outstanding rose from 23,281,620 at
Details
Market move: DDC -6.22% in the Sep 2 session. 1H26 earnings report
On Sep 2, the day this news came out, DDC closed 6.22% below the previous close. Argus tracked a peak move of +21.6% during that session. Argus tracked a trough of -19.4% from its starting point during tracking. Our momentum scanner recorded 47 alerts for this stock that day. Relative volume reached 559.6x the daily average during tracking.
Data tracked by StockTitan Argus for the Sep 2 session.
Key Figures
- Revenue
- 29%; US$20.2 million
- First half 2026 versus first half 2025
- Gross profit
- 17.5%; US$6.1 million
- First half 2026 versus first half 2025
- Adjusted EBITDA
- US$1.2 million
- Core food business, first half 2026
- Gross margin
- 30.4% versus 33.4%
- First half 2026 versus prior-year period
- GAAP net loss
- US$38.4 million
- First half 2026
- Digital-asset fair value loss
- US$34.3 million
- Non-cash unrealized loss, first half 2026
- Working capital
- Positive US$39.4 million versus negative US$12.2 million
- June 30, 2026 versus December 31, 2025
- Bitcoin holdings
- 2,899 Bitcoin versus 1,181 Bitcoin
- Press-release date versus December 31, 2025
Historical Context
-
Management highlighted expected first-half revenue growth, EBITDA improvement, and Bitcoin treasury execution.
-
Preliminary guidance projected revenue growth, higher gross profit, and positive Adjusted EBITDA.
-
A 131-Bitcoin purchase increased holdings and per-share Bitcoin exposure without new shares.
-
A 200-Bitcoin acquisition raised total holdings and per-share exposure without issuing new shares.
-
DDC launched an AI-driven platform to manage Bitcoin reserves and support capital allocation.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
adjusted ebitda financial
mark-to-market financial
working capital financial
convertible loans financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Revenue increased
29% year over year to US$20.2 million , with gross profit increasing17.5% 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
"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 with33.4% 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
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: pr@ddc.xyz
| DDC ENTERPRISE LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS) | |||||||||||||
| For the Six Months Ended June 30， | |||||||||||||
| 2025 | 2026 | ||||||||||||
| RMB | RMB | US$ | |||||||||||
| Productrevenues | 111,909,938 | 136,747,757 | 20,154,126 | ||||||||||
| Cost ofproducts | (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 | ) | |||||||
| Netincome/(loss) | 37,133,644 | (260,644,187 | ) | (38,414,200 | ) | ||||||||
| Netincome/(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 | ||||||||||
| Netincome/(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， | ||||||||||||||
| 2025 | 2026 | |||||||||||||
| 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, | |||||||||||
| 2025 | 2026 | |||||||||||
| (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, | |||||||||||
| 2025 | 2026 | |||||||||||
| (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, | ||||||||||||
| 2025 | 2026 | ||||||||||||
| (Audited) | (Unaudited) | ||||||||||||
| RMB | RMB | US$ | |||||||||||
| Shareholders’ equity | |||||||||||||
| Class A ordinary shares (US | 65,584,619 | 126,326,916 | 18,618,284 | ||||||||||
| Class B ordinary shares (US | 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, | |||||||||||||
| 2025 | 2026 | 2026 | |||||||||||
| 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 | ||||||||||
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