Dear Shareholder:
2025 will be 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 we further focused our core food business on the Asian market, where demand is strongest.
These decisions were not easy, but they have proven to be the right choices.
We are making these adjustments to make the company more streamlined and efficient. Overall, these measures have strengthened the balance sheet, clarified the strategic direction, and enabled DDC to create long-term value for shareholders in a more solid and stable manner.
I am genuinely proud of the team's achievements in such a short period of time. After laying a solid foundation, I would like to review the key developments of 2025 and share our thoughts for the next phase.
Looking Back at 2025: Centered on "Resilience"
In 2025, our keyword will be just one: resilience.
This means enhancing liquidity, improving operational performance, and building a solid infrastructure and capability system to steadily advance the Bitcoin treasury strategy.
With this foundation in place, we officially launched our Bitcoin Treasury Strategy in May. This strategy is based on my long-term assessment: Bitcoin is one of the most powerful long-term hedges against inflation and currency devaluation. While some still view Bitcoin as a speculative asset, I prefer to see it as a reserve asset that can withstand economic cycles and be held for the long term.
In just three months, our Bitcoin reserves exceeded 1,000 BTC. As of the end of the year, the company's treasury held 1,183 BTC, valued at approximately $114 million as of January 14, 2026, with each Bitcoin priced at $96,000; the average cost per Bitcoin held was approximately $90,660.
With the changing market environment at year-end and tightening liquidity, capital deployment requires greater caution. We did not achieve the aggressive targets set at the beginning of the year, but we have laid a solid foundation—and we did it the right way.
Looking ahead, we will continue to expand our Bitcoin holdings in a prudent and stable manner, adhering to capital cost and balance sheet resilience as our primary principles in determining the pace of accumulation, with a focus on sustainable growth.
At the same time, operational performance complements the company's financial strategy. In the first half of 2025, the company achieved a historical high gross margin of 33.4% and realized profitability for the first time. This was primarily driven by efficiency improvements from scale effects, supply chain optimization, cost control, and material savings.
This is crucial.
A consistently profitable and steadily growing operating foundation enables DDC to sustain development through economic cycles without being disrupted by short-term fluctuations. We expect to disclose the full-year 2025 results in April 2026. In the meantime, the second half of 2025 continued the record momentum seen in the first half, with strict operational discipline maintained and profit-margin-focused execution progressing steadily.
In addition to our operational performance, we have also enhanced the governance and risk control framework of our treasury strategy. We have established a dedicated advisory committee to oversee macroeconomic factors, treasury governance, and strategic risk supervision. We build the company based on a long-term perspective, and we believe that long-term strategies must be supported by long-term governance.
Bitcoin Outlook for 2026: Scarcity is Being Repriced
At the beginning of 2026, the macroeconomic environment remains complex: markets are adjusting to higher real interest rates, cautious liquidity conditions, and persistently rising geopolitical risks.
But what I think is most important is: scarcity is being reevaluated.
In 2025, gold rises by about 65%, and silver increases by approximately 145%, while liquidity indicators such as global money supply expand again. Historically, when liquidity improves and confidence in fiat currencies weakens, scarce assets often experience repricing.
Bitcoin is also gradually becoming part of this discussion—it is no longer just a "trend," but rather an institutional-grade asset class that is taking shape.
The post-pandemic era has reshaped institutions' approaches to evaluating risk, scarcity, and resilience. Capital allocation has become more cautious, favoring assets that can preserve value over the long term and operate, to some extent, independently from traditional monetary systems. Bitcoin's fixed supply and transparent issuance mechanism make it particularly strategically significant in this new context.
At the same time, the participant structure is also changing.
This trend is no longer limited to crypto-native investors. Global major financial institutions are accelerating the development of digital asset infrastructure and preparing for a more digitized financial system. Institutions such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley are all taking action—including engaging in regulatory communication, institutional investment, and building blockchain-based settlement/payment systems. The signal is clear: the industry is moving from "discussion" to "actual execution."
The regulatory environment is also gradually becoming clearer. Legislation such as the CLARITY Act provides clearer standards for custody, taxation, and information disclosure, thereby reducing the historical uncertainties that have constrained industry development. At the same time, changes in policy and central bank leadership could reshape global liquidity and risk appetite, which we will continue to closely monitor.
The market structure is also maturing. Regulated custodians, clearing platforms, and listed investment instruments are continuously improving, resulting in enhanced liquidity, increased transparency, and lower entry barriers. As a result, Bitcoin is increasingly being viewed as a "long-term store of value" rather than a short-term speculative asset.
Against this backdrop, DDC will enter 2026 with a clearer strategic focus.
Volatility is an inevitable part of the early stages of institutionalization. However, we also believe that volatility itself often creates opportunities for the well-prepared.
Core objective for 2026: Expansion of the Bitcoin Treasury
Our core 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 a matter of "adding to the position," but rather about building a system that can operate stably across different cycles.
We will expand our financial reserves through a structured share repurchase program, maintaining a balance between "sustained investment" and "strategic allocation." Each allocation is based on rigorous risk management and prudent governance.
Equally important is the financial infrastructure.
This year, we will introduce a Preferred Share Issuance Program as an important financing tool for capital expansion. This program enables DDC to flexibly deploy capital when market conditions are most favorable, while minimizing dilution to Class A common shareholders and maintaining operational liquidity. Through this arrangement, DDC can proactively execute its strategy without overextending its resources.
Beyond share buybacks, we will prudently explore certain conservative, risk-adjusted opportunities for Bitcoin returns. All initiatives will be conducted within clearly defined risk boundaries, prioritizing stable and reliable counterparties, and adhering to capital preservation as the highest principle. Returns will serve as a strategic complement, not a substitute for sound risk management.
The core objective is not only growth in scale, but also strategic leadership. We aim to demonstrate how companies can continuously create long-term value by combining institutional governance, prudent capital allocation, and emerging financial infrastructure.
Looking to the future
The foundation for 2025 provides strong momentum for 2026. Today's DDC is more robust, more agile, and more consistent. We lead our strategy with conviction, ensure execution through discipline, and measure success by its long-term impact rather than short-term fluctuations.
In the new year, our mission remains clear: to combine sound capital management with strategic foresight, transforming market volatility into opportunities for compound growth, and to drive DDC to the forefront of institutional-grade Bitcoin treasury practices.
Thank you to all our shareholders for your long-term trust and support.
Best regards,
Respectfully yours,
Norma Chu
Founder, Chairman of the Board, and Chief Executive Officer
Click to learn about BlockBeats' job openings.
Welcome to join the official Lulin BlockBeats community:
Telegram Subscription Group:https://t.me/theblockbeats
Telegram discussion group:https://t.me/BlockBeats_App
Official Twitter account:https://twitter.com/BlockBeatsAsia