Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 138

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 138
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. The M&A strategy will continue to evolve with our changing needs and requirements. M&A is an important part of our strategy to establish our footprint and sales channel internationally. We are actively looking at potential targets with revenues in the US, Europe, Australia, SE Asia, and Middle East. 79

Treasury Strategy —During the first half of the fiscal year, the Company adopted a Bitcoin accumulation strategy as part of its capital allocation framework. As of the reporting date, the Company held 1,083 Bitcoin. The strategy’s objective is to optimize long -termshareholder value while maintaining prudent liquidity and risk management. The Company views Bitcoin as a scarce digital commodity operating on a decentralized, peer -to-peernetwork without reliance on central monetary authorities. Bitcoin’s fixed supply of 21 million units and cryptographic transparency contribute to its characteristic as “digital gold.” Management believes that Bitcoin’s durability, divisibility, and portability provide advantages as a long -termstore of value compared to traditional reserve assets. However, the Company recognizes that Bitcoin remains an emerging asset subject to high volatility, evolving regulation, and technological risks that could materially affect its fair value and liquidity. In managing its treasury, the Company seeks a balanced approach to capital preservation, liquidity, and appreciation potential. The investment in Bitcoin is intended as both a diversification measure and a hedge against potential monetary debasement and inflationary pressures. The Company continuously reviews its digital -assetexposure, considering market dynamics, custodial infrastructure, cybersecurity standards, and the evolving policy environment. The Company uses institutional -gradecustodians employing multi -signaturecold -storagesolutions and maintains internal controls designed to mitigate operational, theft, and cybersecurity risks. Management periodically reviews compliance with these controls as part of its internal audit processes. Overall, management believes the Bitcoin treasury strategy represents a disciplined response to broader macroeconomic and structural changes in the global financial system. The approach is intended to preserve long -termcorporate value and financial flexibility while acknowledging the inherent risks and regulatory evolutions surrounding digital assets. The Company will continue to evaluate its treasury composition, risk controls, and disclosure practices to align with prevailing standards and investor expectations. The following table sets forth a summary of our consolidated statements of operations for the periods indicated.

|                                                                                    |     | For the Year Ended December 31, 
                            2022 |   |     |         2023 |   |     |         2024 |   |     |        2024 |   |
|:-----------------------------------------------------------------------------------|:----|--------------------------------: