DDC Enterprise Limited (NYSEAMERICAN: DDC) Founder, Chairwoman, and CEO Norma Chu Publishes Shareholder Letter

DDC Enterprise Limited (NYSEAMERICAN: DDC) today issued a corporate update in a Letter to Shareholders from CEO Norma Chu.

To Our Valued Shareholders,

2025 was a defining year for DDC.

For the first time in the Company's history, we became profitable in the first half of 2025. We made Bitcoin our treasury reserve asset. We exited our U.S. operations. And we refocused our core food business on Asian markets where we see the strongest demand.

These weren't easy decisions. But they were the right ones.

We made these changes to simplify the company. Together, they strengthened our balance sheet, sharpened our strategy and positioned DDC to build long-term value for our shareholders.

I'm proud of what the team has accomplished in a short amount of time. With the foundation in place, I want to reflect on what we built in 2025 and share how we're thinking about the next chapter.

Reflecting on 2025

In 2025, we focused on one thing: resilience.

That meant strengthening liquidity, improving operating performance, and building the foundation required to scale our Bitcoin treasury strategy responsibly.

With that foundation in place, we formally launched our Bitcoin Treasury Strategy in May, guided by my belief that Bitcoin is one of the most powerful long-term hedges against inflation and currency debasement. Some people still view Bitcoin as speculation. I see it differently. I see it as a durable, long-term reserve asset.

In just three months, we surpassed 1,000 BTC, and we ended the year with 1,183 BTC in our treasury, representing about US$114 million based on $96,000 per BTC (as of January 14, 2026), compared to an average cost basis of US$90,660 per BTC.

By the end of the year, market conditions changed, liquidity tightened, and capital deployment required restraint. We did not reach our ambitious year-end target. But we built a strong foundation, and we built it the right way.

Going forward, we will continue to scale our Bitcoin holdings through a measured accumulation approach—prioritizing cost of capital and balance sheet resilience. At the same time, our operating performance strengthened alongside our treasury strategy. In the first half of 2025, we delivered record-high gross margin of 33.4% and achieved profitability for the first time in the Company's history driven by economies of scale, supply chain optimization, cost control, and raw material savings.

This matters.

Because a growing profitable operating foundation gives DDC the edge to keep building—through up cycles and down cycles. We expect to report our full-year 2025 results in April 2026. In the meantime, the second half of 2025 continued to build on the momentum of our record first half, supported by continued operating rigor and margin-focused execution.

Beyond the numbers, we also strengthened the governance and risk framework around our treasury strategy. We formed specialized advisory councils spanning macroeconomics, treasury governance, and strategic risk oversight. We are building for the long-term and we believe long-term strategy demands long-term governance.

2026 Bitcoin Outlook

2026 begins with a complex macro environment. Markets are adjusting to higher real interest rates, cautious liquidity, and heightened geopolitical risk.

But here is what I believe is most important.

Scarcity is being repriced again.

In 2025, gold rose roughly 65%, while silver surged 145%. And global liquidity measures such as broad money supply are expanding again. Historically, when liquidity rises and confidence in fiat weakens, scarce money assets tend to revalue.

Bitcoin is increasingly part of that conversation. Not as a trend, but as an institutional asset class in the making.

The post‑pandemic cycle has reshaped how institutions evaluate risk, scarcity, and resilience. Capital has become selective, favoring assets that can preserve value over long horizons and operate outside traditional monetary regimes. And Bitcoin's fixed supply and transparent issuance schedule make it uniquely relevant in that world.

What's also changing is who is paying attention.

This shift is no longer confined to crypto-native investors. The world's largest financial institutions are building digital asset infrastructure and preparing for a more digital financial system. Major financial institutions, including Goldman Sachs, having increasingly pointed to regulatory progress and growing institutional engagement. JPMorgan continues to invest in blockchain-based settlement and payment rails. Morgan Stanley is now launching its own Bitcoin ETF. That tells you something important: this is moving from "debate" to "execution."

Regulatory clarity is also improving. Legislative initiatives such as the CLARITY Act reflect progress toward more defined standards for custody, taxation, and disclosure—reducing uncertainty that historically constrained adoption. At the same time, policy and central bank leadership transitions may shape liquidity and risk appetite across global markets. These dynamics matter, and we watch them closely.

The market structure is maturing too. Regulated custodians, clearing platforms, and listed investment vehicles are deepening liquidity, improving transparency, and lowering barriers for traditional capital. As a result, Bitcoin is increasingly being evaluated through the same strategic lens as other long-term reserve assets.

Against this backdrop, DDC enters 2026 with focus and readiness.

Volatility is part of early-stage institutional adoption. We understand that. But we also believe volatility creates opportunities for the prepared.

Our North Star for 2026: Disciplined Expansion of Our Bitcoin Treasury

Our North Star for 2026 is simple:

Continue building a world‑class Bitcoin treasury defined by strong governance and repeatable execution.

This is not just about growing our holdings. It is about building a system that works across market cycles.

We will continue to expand our treasury holdings through structured programs that balance consistency and opportunity. Every allocation decision will be grounded in rigorous risk management and thoughtful governance.

Equally important is the financial architecture behind that strategy.

This year we will be introducing a Preferred Share Issuance Program that is designed as a durable, accretive funding tool for treasury expansion. It enables DDC to allocate capital when conditions are most favourable, minimize dilution to Class A ordinary shareholders, and preserve operating liquidity. The structure reinforces DDC's ability to act from a position of strength—without overextending resources.

Beyond accumulation, we will selectively pursue conservative, risk-adjusted yield opportunities on our Bitcoin reserves. These initiatives will be guided by clearly defined risk parameters, conservative counterparties, and an overriding priority on capital preservation. Yield is a complement to our strategy—not a substitute for prudent stewardship.

In short, our North Star is about strategic leadership. We want to demonstrate how an enterprise can combine institutional governance, thoughtful capital allocation, and emerging financial infrastructure to create durable, long‑term value.

Looking Forward

The foundation laid in 2025 gives us momentum entering 2026. Today, DDC stands stronger, more agile, and more aligned than ever. We lead from conviction, execute with discipline, and measure success not by quarters, but by long-term impact.

In the year ahead, our mission remains clear: combine disciplined capital management with strategic foresight, converting volatility into compounding value and positioning DDC at the forefront of institutional Bitcoin treasury leadership.

Thank you for your continued partnership, support, and trust.

Sincerely,

Norma Chu

Founder, Chairwoman & Chief Executive Officer

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 letter 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 business prospects, accumulation of Bitcoin, the Company and its management's view of market conditions and outlook, and the Company's goals, strategy 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 filed with the Securities and Exchange Commission ("SEC") and available at www.sec.gov. It is also inherent in forward-looking statements for there to be 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 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.

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