Dear Shareholders:

2025 was a pivotal year for DDC.

For the first time in company history, we achieved profitability in the first half of 2025; we designated Bitcoin as the company's treasury reserve asset; we exited the U.S. market; and further focused our core food business on the strongest Asian markets.

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

We made these adjustments to make the company leaner and more efficient. Overall, these actions strengthened our balance sheet, clarified our strategic direction, and positioned DDC to create long-term value for shareholders in a more robust manner.

I am deeply proud of what the team has accomplished in a short time. Having laid a solid foundation, I would like to review the key developments of 2025 and share our thoughts on the next stage.

Review of 2025: Embracing "Resilience"

In 2025, our key word was simple: Resilience.

This meant enhancing liquidity, improving operational performance, and building a robust infrastructure and capabilities 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 was based on my long-term belief: Bitcoin is one of the most powerful long-term hedging tools against inflation and currency devaluation. Some still view Bitcoin as a speculative asset, while I prefer to see it as a reserve asset that can withstand cycles and be held for the 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 at $96,000 per BTC as of January 14, 2026; with an average holding cost of around $90,660 per BTC.

As market conditions shifted at year-end and liquidity tightened, capital deployment needed to be more cautious. We did not achieve the aggressive targets set earlier in the year, but we established a strong foundation—and did so in the right way.

Looking ahead, we will continue to expand our Bitcoin holdings prudently and steadily, maintaining a pace of accumulation based on capital costs and balance sheet resilience, focusing on sustainable accumulation.

Meanwhile, operational performance complemented the treasury strategy. In the first half of 2025, the company achieved its highest-ever gross margin of 33.4% and turned profitable for the first time, largely due to efficiency gains from economies of scale, supply chain optimization, cost controls, and raw material savings.

This is crucial.

A sustainable and profitable operational foundation enables DDC to continue growing steadily, weathering economic cycles without being disrupted by short-term fluctuations. We expect to disclose our full-year 2025 performance in April 2026. Leading up to this, the second half of 2025 continued the record-breaking momentum of the first half, maintaining strict operational discipline and steadily progressing with a profit-oriented approach.

In addition to operational performance, we have also enhanced the governance and risk management framework of our treasury strategy, establishing a specialized advisory committee covering macroeconomics, treasury governance, and strategic risk oversight. As a company focused on the long term, we believe that long-term strategy must be accompanied by long-term governance.

2026 Bitcoin Outlook: Repricing Scarcity

As of early 2026, the macro environment remains complex: the market is adjusting to higher real interest rates, cautious liquidity, and ongoing rising geopolitical risks.

But what I believe is most important: scarcity is being reassessed.

In 2025, gold rose by about 65%, silver by about 145%, while global liquidity metrics such as the money supply expanded once again. From historical experience, when liquidity rebounds and confidence in fiat currency weakens, scarce assets tend to be repriced.

Bitcoin is also gradually becoming part of this discussion—it is no longer just a "fad" but is evolving into an institutional-grade asset class.

The post-pandemic period has reshaped how institutions evaluate risk, scarcity, and resilience. Capital allocation is more cautious, favoring assets that can preserve value in the long term and to some extent operate outside the traditional monetary system. Bitcoin's fixed supply and transparent issuance mechanism make it strategically significant in this era.

At the same time, the participant structure is changing.

This trend is no longer confined to native crypto investors. Major global 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, Morgan Stanley, among others, are taking action—including regulatory engagement, institutional investment, and blockchain settlement/payment infrastructure development. 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 disclosure, reducing the historical uncertainties that have constrained industry development. Additionally, changes in policy and central bank leadership may reshape global liquidity and risk appetite, which we will continue to monitor closely.

The market structure is also maturing. Regulated custody providers, clearing platforms, and listed investment vehicles continue to improve, enhancing liquidity, increasing transparency, and lowering barriers to entry. As a result, Bitcoin is increasingly being seen as a "long-term reserve asset" rather than a short-term speculative target.

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

Volatility is an inevitable part of the institutionalization process. However, we also believe that volatility itself often creates opportunities for the prepared.

Core Objective for 2026: Bitcoin Treasury Expansion

Our core objective for 2026 is very clear:

To 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 that can operate stably across cycles.

We will expand the treasury through a structured accumulation plan, maintaining a balance between "consistent investment" and "opportunistic allocation." Each allocation is based on rigorous 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 program will help DDC flexibly deploy funds when capital conditions are optimal, minimize dilution to Class A common shareholders, and maintain operational liquidity. Through this arrangement, DDC can proactively execute its strategy without overextending its resources.

In addition to accumulation, we will prudently explore conservative, risk-adjusted Bitcoin yield opportunities. All initiatives are premised on clear risk boundaries, preferentially selecting robust trading counterparties, and prioritizing capital preservation as the highest principle. Yield is a strategic complement, not a substitute for sound management.

The core objective is not just growth in scale but strategic leadership. We aim to demonstrate how enterprises can continue to create long-term value through institutional governance, prudent capital allocation, and the integration of emerging financial infrastructure.

Looking Ahead

The foundation laid in 2025 has provided strong momentum for 2026. Today's DDC is more resilient, more agile, and more consistent. We lead with conviction in our strategy, safeguard with discipline in 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, to transform market volatility into compounding growth opportunities, and to drive DDC to the forefront of institutional Bitcoin treasury practices.

Thank you to all shareholders for your long-standing trust and support.

Sincerely,

Norma Chu

Founder, Chairwoman, and CEO

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