DDC Enterprise Limited Class A Ordinary Shares

Good morning, everyone, and welcome to DDC Enterprise Limited's first HAP 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. please be advised that today's conference is being recorded. I would now like to turn the conference over to Cody Fletcher and best relations for DDC. Please go ahead.

Thanks, Operator. Hi, everyone, and thank you for joining DDC Enterprises' full year 2025 earnings conference call. Joining me today are Norma Chu, DDC's founder, chairwoman, and CEO, and Kyuho Kim. DDC's Chief of Staff. Before we begin today's call, I'd like to remind everyone that today's call is being recorded and will be available on DDC's Investor Relations website. After management's prepared remarks, we will open the line for Q&A. A press release covering DDC's full-year 2025 results are also available on our IR website. Please note that during the course of this call, we may make forward-looking statements. These statements reflect our current views and expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our SEC filings for a more detailed discussion of these risk factors. And with that, I'll pass the call over to Norma. Norma?

Thanks, Cody. Hello, everyone, and thank you for joining us today. 2025 was a transformational year for DDC. We took decisive steps to reposition the business. We exited our U.S. operation in the first half and refocused our core food business in Asia, where we see the strongest demand. In parallel, we launched our Bitcoin treasury strategy as a core component of our long-term capital allocation framework. We made these changes to simplify the business, strengthen our foundation, and position DDC to build long-term value. Today, DDC operates on two complementary pillars, a growing consumer food platform and a long-term Bitcoin treasury strategy. Our food business provides revenue and income stability, while treasury strategy compounds value on the balance sheet over time. These two components work together. Our operating business generates a stable foundation That foundation allow us to allocate capital to Bitcoin with conviction, independent of market cycles. Turning to our operating performance. For 2025, our core consumer food business delivered record revenue of 39.2 million and positive adjusted EBITDA. These results reflected continued execution across our core markets and improvement in operating efficiency. In the second half, Revenue grew 17% euro over year to 23.6 million, and gross margins remained stable at 30.2%. Demand remained strong across our key markets. We expanded our offline distribution channels, growing our network of regional distributors, and deepening customer partnerships. These efforts drove consistent increases in offline sales volume and further penetrated into lower-tier cities. We see a continual shift to a value-oriented consumption and localized distribution across China market. This trend aligns directly with our focus on healthy, ready-to-eat products that support at-home consumption and convenience. In terms of our Bitcoin treasury strategy, from the beginning, we approached it with discipline. We focused on building the right foundation, strengthening our capital structure, and ensuring we could scale responsibly over time. Following the launch of our strategy in May, we scaled our capital markets effort, expanded our partnerships, and built the infrastructure required to support long-term accumulation. We accumulated 1,181 Bitcoin across multiple transactions in the second half of the year, demonstrating our long-term conviction in Bitcoin. In 2026, we continued we have continued to execute. Since year end, we have more than doubled our Bitcoin holdings, increasing from 1,181 Bitcoin at the end of 2025 to 2,383 Bitcoin as of today, which represents approximately 182 million of value based on current Bitcoin prices. This position's DDC amounts to the top 30 publicly traded corporate holders of Bitcoin globally. This reflects our long-term conviction. We view Bitcoin as a long-term reserve asset that complements our operating business and strengthens our capital allocation framework. In addition, today we introduce the DDC Treasury Intelligence Platform, an AI-driven system designed to enhance how we manage and evaluate our Bitcoin treasury. We believe we are amongst the first corporate treasury companies to take this approach. building dedicated infrastructure to bring greater discipline, transparency, and structure to Bitcoin capital allocation. This platform integrates internal data, market signals, and historical decisions into a unified framework, allowing us to evaluate trade-offs more consistently and with greater clarity over time. Our goal is not to automate decision making, but to strengthen the quality and consistency of how we allocate capital across different market environments. Over time, we believe this more structured approach to capital allocation can improve the efficiency of our decision-making and support stronger risk-adjusted outcomes across cycles. We see this as an important step towards building a more scalable and institutional approach to managing our treasury. Looking ahead, we remain focused on scaling both parts of the business with discipline. We will drive growth in higher margin markets on the operating side. We will continue to accumulate Bitcoin in a measured and strategic manner on the treasury side. We will improve cost structure and operating efficiency as the platform matures. We will also explore selective risk-managed opportunities to generate yield on our Bitcoin holdings. with a focus on capital preservation, high-quality counterparties, and disciplined risk management. Over time, we also expect to expand our capital allocation capabilities through structured opportunities that complement our treasury strategy and further differentiate our platform. Our goal remains clear, to build a company that compounds value over time across both the income statement and the balance sheet. With that, I'll pass the call to Q to talk about our financial performance in more detail.