DDC Enterprise Limited Founder, Chairman of the Board, and CEO Norma Chu's Letter to Shareholders

Title: Letter to Shareholders from Norma Chu, Founder, Chairwoman of the Board, and CEO of DDC Enterprise Limited

Author: Rhythm BlockBeats

Source:

Reprint: Mars Finance

Dear Shareholders:

2025 is a decisive year for DDC.

In our company’s history, we achieved profitability for the first time in the first half of 2025; we designated Bitcoin as the company’s treasury reserve asset; we exited the U.S. business; and further focused our core food business on the most robust Asian markets.

These decisions were not easy, but they proved to be the right choices.

We made these adjustments to make the company leaner and more efficient. Overall, these measures strengthened our balance sheet, clarified our strategic direction, and enabled DDC to create long-term value for shareholders with a more stable approach.

I am truly proud of what our team has accomplished in a short period. After solidifying our foundation, I want to review the main developments of 2025 and share our thoughts on the next phase.

Looking Back at 2025: Making “Resilience” the Core

In 2025, our only keyword was: Resilience.

This means enhancing liquidity, improving operational performance, and building a solid infrastructure and capability system to support the steady advancement of our Bitcoin treasury strategy.

With these foundations in place, we officially launched the Bitcoin treasury strategy in May. This strategy is based on my long-term judgment: Bitcoin is one of the most effective long-term hedges against inflation and currency devaluation. Some still see Bitcoin as a speculative asset, but I prefer to view it as a reserve asset that can withstand cycles and be held long-term.

In just three months, our Bitcoin reserves surpassed 1,000 BTC. By the end of the year, the company’s treasury held 1,183 BTC, valued at approximately $114 million based on the January 14, 2026 price of $96,000 per BTC; the average cost basis was about $90,660 per BTC.

As market conditions changed at year-end and liquidity tightened, capital deployment needed to be more cautious. We did not meet the aggressive targets set at the beginning of the year, but we laid a solid foundation—and did so in the right way.

Looking ahead, we will continue to expand our Bitcoin holdings prudently and steadily, prioritizing capital cost and balance sheet resilience in our incremental approach, with sustainable accumulation as our guiding principle.

Meanwhile, operational performance complements our treasury strategy. In the first half of 2025, the company achieved a record-high gross profit margin of 33.4% and turned a profit for the first time. This was mainly due to efficiency gains from scale, supply chain optimization, cost control, and raw material savings.

This is crucial.

A consistently profitable and steadily growing operational foundation enables DDC to sustain development through economic cycles without being disrupted by short-term fluctuations. We expect to disclose full-year 2025 results in April 2026. Until then, the second half of 2025 continued the record-breaking momentum of the first half, with strict operational discipline and steady progress in profit margin-driven execution.

In addition to operational performance, we also improved governance and risk control frameworks for our treasury strategy, establishing a dedicated advisory committee overseeing macroeconomic conditions, treasury governance, and strategic risks. We build the company with a long-term perspective and believe that long-term strategies must be supported by long-term governance.

2026 Bitcoin Outlook: Scarcity Repricing

Early 2026, the macro environment remains complex: markets are adjusting to higher real interest rates, cautious liquidity, and ongoing geopolitical risks.

But I believe the most important development is: scarcity is being re-evaluated.

In 2025, gold rose about 65%, silver about 145%, while global money supply and liquidity indicators expanded again. Historically, when liquidity rebounds and confidence in fiat currencies weakens, scarcity assets tend to be re-priced.

Bitcoin is gradually becoming part of this discussion—it is no longer just a “trend,” but an emerging institutional asset class.

The post-pandemic cycle has reshaped institutional assessments of risk, scarcity, and resilience. Capital is becoming more cautious, favoring assets that can preserve value over the long term and operate to some extent outside traditional monetary systems. Bitcoin’s fixed supply and transparent issuance mechanism make it strategically more significant in this context.

At the same time, the participant structure is changing.

This trend is no longer limited to crypto-native investors. Major global financial institutions are accelerating the development of digital asset infrastructure and preparing for a more digitalized financial system. Firms like Goldman Sachs, JPMorgan Chase, and Morgan Stanley are taking action—including regulatory engagement, institutional investment, and blockchain settlement/payment infrastructure. The signals are clear: the industry is moving from “discussion” to “actual implementation.”

Regulatory environments are also gradually clarifying. Legislation such as the CLARITY Act provides clearer standards for custody, taxation, and disclosure, reducing historical uncertainties that have constrained industry development. Additionally, policy shifts and leadership changes at central banks may reshape global liquidity and risk appetite, which we will continue to monitor closely.

Market structure is also maturing. Regulated custody providers, clearing platforms, and listed investment vehicles are improving, increasing liquidity, transparency, and lowering barriers. As a result, Bitcoin is increasingly viewed as a “long-term reserve asset” rather than a short-term speculative instrument.

Against this backdrop, DDC will enter 2026 with a clearer strategic focus.

Volatility is an inevitable part of the early institutionalization process. But we also believe: volatility often creates opportunities for those prepared.

Core Goal for 2026: Expansion of the Bitcoin Treasury

Our primary goal for 2026 is very clear:

Continue building a world-class Bitcoin treasury system with strong governance and replicable execution capabilities.

This is not just about “increasing holdings,” but about establishing a system capable of stable operation across cycles.

We will expand the treasury through structured incremental plans, balancing “continuous investment” with “opportunistic allocation.” Every deployment will be based on strict risk management and prudent governance.

Equally important is the financial architecture.

This year, we will launch a Preferred Share Issuance Program as a key financing tool for treasury expansion. This plan allows DDC to deploy capital flexibly when conditions are optimal, while minimizing dilution to Class A common shareholders and maintaining operational liquidity. Through this arrangement, DDC can execute strategic initiatives proactively without overextending resources.

Beyond incremental increases, we will cautiously explore some conservative, risk-adjusted Bitcoin yield opportunities. All measures will be predicated on clear risk boundaries, prioritizing reliable counterparties and capital preservation. Returns are a strategic supplement, not a substitute for prudent management.

Our core goal is not just scale growth but strategic leadership. We aim to demonstrate how a company can continuously create long-term value through a combination of institutional governance, prudent capital allocation, and emerging financial infrastructure.

Looking Ahead

The foundation laid in 2025 provides strong momentum for 2026. Today’s DDC is more resilient, agile, and consistent. We lead with conviction, ensure disciplined execution, and measure success by long-term impact rather than short-term fluctuations.

In the new year, our mission remains clear: to combine prudent capital management with strategic foresight, turning market volatility into opportunities for compound growth, and positioning DDC at the forefront of institutional Bitcoin treasury practices.

Thank you all for your long-term trust and support.

Sincerely,

Norma Chu

Founder, Chairwoman of the Board, and CEO