DDC Enterprise Ltd. Financial Results
DDC Enterprise Ltd. (NYSEAM: DDC), a publicly traded entity based in China, has released impressive financial results for 2024, marking a significant 33% increase in revenue year-over-year, reaching $37.4 million. This surge can be attributed to strategic acquisitions in the U.S. and continued stability in its domestic Chinese market. The company’s gross profit margins also showed improvement, rising to 28.4% from 25% recorded in the previous year.
Furthermore, the company’s adjusted EBITDA loss decreased to $3.5 million, while shareholders’ equity saw a robust increase of 33%, amounting to $11.3 million, bolstered by conversions of debt and new equity injections.
Strategic Cryptocurrency Reserve Initiative
In a strategic move, DDC announced its intention to build a substantial reserve of cryptocurrency by acquiring 5,000 bitcoin (BTC) over the next three years. Their immediate plan involves the purchase of 100 BTC, with an ambitious target to accumulate 500 BTC in just six months. This initiative is part of the company’s broader corporate reserve strategy, underscoring the leadership’s belief in bitcoin as a vital asset for long-term value preservation.
“Bitcoin’s unique properties as a store of value and a hedge against macroeconomic uncertainty align perfectly with our vision to diversify reserves and enhance shareholder returns,” CEO and Chairwoman, Norma Chu, remarked.
To manage this cryptocurrency acquisition, DDC will establish a specialized treasury team along with advisors focused on digital assets. As of March 31, 2025, the company reported possessing $23.6 million in cash and short-term investments, although it did not disclose specific allocations for bitcoin purchases.
Future Objectives and Outlook
Looking to the future, DDC has outlined its 2025 objectives, which include launching a joint venture in China that is estimated to yield an annual net profit of $3 million, alongside their cryptocurrency reserve approach. Chu expressed her optimism for the transformative potential of blockchain technology, positioning DDC as a leader in the embrace of corporate digital assets.
As part of these forward-looking plans, DDC anticipates achieving positive adjusted EBITDA in 2025 by leveraging improvements in operational efficiency and strategic investments. In their communications with stakeholders, the company extended gratitude for their continued support as it seeks to “shape the future” of corporate finance.
