DDC Founder and CEO's Letter to Shareholders

The preferred shares cannot convert into ordinary shares, while retirement of the existing convertible note remains conditional.

Rhea-AI Summary

DDC Enterprise (DDC) launched its Series A perpetual preferred shares as part of a plan to retire its outstanding convertible note. The shares have a $25.00 stated value, carry a cumulative 13.5% annual dividend paid in cash every business day, and will trade on NYSE American as SVOR. They have no maturity date and cannot convert into ordinary shares.

DDC may use up to 20% of offering proceeds to retire the note, supplemented by Bitcoin-backed financing and negotiated arrangements. Completion depends on proceeds raised, financing availability and final agreements. A reserve holds at least twelve months of dividends. Bitcoin price conditions could trigger one-time bonus dividends totaling up to $4.00 per preferred share. DDC's Bitcoin treasury strategy remains unchanged; the company plans to strengthen its capital structure before expanding accumulation when it judges the timing appropriate.

3 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 5 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNonconvertible preferred shares broaden funding options without adding an instrument convertible into ordinary shares.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Convertible-note retirement is a priority, with up to 20% of offering proceeds potentially allocated.
• Minor point. Forward-looking: it has not happened yet and may not happen.Bitcoin accumulation remains planned after capital-structure strengthening, when DDC judges timing appropriate.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.13.5% cumulative annual dividend on $25.00 stated value creates cash payments every business day.
• Moderate pointNote retirement depends on proceeds raised, financing availability and final agreements.
• Minor pointDividend reserve must hold at least twelve months of dividends at all times.
• Minor point. Forward-looking: it has not happened yet and may not happen.Bonus dividends up to $4.00 per share apply if Bitcoin holds at or above $180,000, $250,000 and $350,000.
• Minor pointShare-price volatility has included single-day moves exceeding 30% in both directions.

Key Figures

Stated value: $25.00 per share Annual cumulative dividend: 13.5% per year Dividend reserve coverage: At least 12 months +3 more

Stated value

$25.00 per share

Series A preferred shares

Annual cumulative dividend

13.5% per year

Series A preferred shares

Dividend reserve coverage

At least 12 months

Minimum dividends held in the reserve account

Maximum bonus dividends

Up to $4.00 per share

One-time payments tied to Bitcoin price thresholds

Bitcoin price thresholds

$180,000, $250,000 and $350,000

Levels for eligibility for one-time bonus dividends

Offering proceeds for note retirement

Up to 20%

May be allocated toward retiring the outstanding convertible note

Key Terms

perpetual preferred shares, cumulative dividend, convertible note

3 terms

perpetual preferred shares financial

"Series A 13.5% Perpetual Preferred Shares"

Perpetual preferred shares are a type of equity that pays regular, often fixed, dividends indefinitely and does not have a maturity date like a bond. They rank above common stock for dividends and in liquidation, so they can act like a steady-income hybrid between stock and bond; investors care because these shares offer ongoing income and higher priority in payouts but typically have limited upside and interest-rate and issuer-credit risk.

cumulative dividend financial

"pays a cumulative dividend of 13.5% per year"

A cumulative dividend is a feature on certain dividend-paying securities—most often preferred shares—where any missed or unpaid dividend payments build up like an IOU and must be paid to those shareholders before common shareholders receive dividends. For investors this matters because it makes expected income more reliable and gives holders priority on future payouts, which affects yield, perceived safety, and the security’s value compared with noncumulative alternatives.

convertible note financial

"Our priority is to retire the outstanding convertible note."

A convertible note is a type of loan that a company gets from investors, which can later be turned into company shares instead of being paid back in cash. It matters because it helps startups raise money quickly without setting a fixed value for the company right away, making it easier to grow and attract investors.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DDC launches SAVOR Series A 13.5% Perpetual Preferred Shares (SVOR) and outlines plan to retire its outstanding convertible note

NEW YORK, Nov. 05, 2026 (GLOBE NEWSWIRE) -- DDC Enterprise Limited (NYSE American: DDC) ("DDC" or the "Company"), a global Asian food platform and digital asset treasury company, today issued a Letter to Shareholders from Founder, Chairwoman and CEO Norma Chu.

Dear Valued Shareholders,

Today we launched our Series A 13.5% Perpetual Preferred Shares, which will trade on NYSE American under the ticker SVOR. Each share has a stated value of $25.00 and pays a cumulative dividend of 13.5% per year, paid in cash every business day. The dividend is supported by a dividend reserve account that holds at least twelve months of dividends at all times, and the reserve balance and its coverage of our quarterly dividend will be published daily at treasury.ddc.xyz. Holders will also receive one-time bonus dividends if Bitcoin holds at or above $180,000, $250,000 and $350,000, totaling up to $4.00 per share.

This is the most important step we have taken this year to strengthen our capital structure. In this letter I want to explain what the offering means for DDC and address the decline in our share price since July.

Capital structure initiatives

The preferred offering is designed to broaden DDC’s funding options without adding another instrument convertible into ordinary shares. It has no maturity date, and cannot be converted into ordinary shares.

Our priority is to retire the outstanding convertible note. We may allocate up to 20% of the offering proceeds towards that objective, supplemented by Bitcoin-backed financing and negotiated arrangements. Completion will depend on the proceeds raised, financing availability and final agreements.

We will update shareholders as material retirement arrangements are finalized and when the note has been fully extinguished.

Bitcoin treasury

I remain convinced that Bitcoin is the right long-term reserve asset for DDC. Our treasury strategy is unchanged. Our priority in the coming months is to strengthen the capital structure underneath the treasury, so that we can expand our accumulation from a stronger base when we judge the timing to be right.

Volatility is a core part of Bitcoin’s quality. Moreover, volatility comes with being a digital asset treasury company, and our shares have moved more than 30% in a single day in both directions. We cannot control daily trading, but we are focused on the operating performance and capital allocation that underpin long-term shareholder value. We will continue to communicate through our press releases, our filings with the SEC and our earnings releases, at major corporate actions and when we report results, so that every shareholder receives the same information at the same time. This discipline serves all our shareholders equally.

Our focus

Our immediate priorities are to complete the preferred offering, optimize our capital structure, and continue strengthening our operating business. We recognize that shareholder confidence must be earned through execution. We will report our progress clearly as these steps are completed.

Thank you to our shareholders for your patience and support, and to our team and partners for their hard work through this period.

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9f9f3b5f-88ed-455f-a27c-2a682238f7c3

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are the terms of DDC's SVOR preferred shares?

SVOR preferred shares have a $25.00 stated value and a cumulative 13.5% annual dividend, paid in cash every business day. They have no maturity date, cannot convert into ordinary shares and will trade on NYSE American.

How does DDC plan to retire its outstanding convertible note?

DDC may allocate up to 20% of preferred-offering proceeds toward retiring its outstanding convertible note, supplemented by Bitcoin-backed financing and negotiated arrangements. Completion depends on proceeds raised, financing availability and final agreements.

Where can investors track DDC's SVOR dividend reserve?

The dividend reserve balance and its coverage of the quarterly dividend will be published daily at treasury.ddc.xyz. The reserve holds at least twelve months of dividends at all times.