DDC Enterprise Regains NYSE Listing Compliance

Rhea-AI Summary

DDC Enterprise (NYSE:DDC) has successfully regained compliance with NYSE continued listing standards, resolving the deficiency cited in Section 1003(a)(i) from April 23, 2024. The company has significantly improved its stockholder's equity through strategic debt conversions and capital raises.

According to unaudited first half 2024 results, DDC achieved notable financial improvements:

• Reduced debt by $5.6 million through debt-to-equity conversion
• Increased shareholder equity by 109% to $19.7 million compared to December 31, 2023
• Grew total revenue by 40% to $17.2 million year-over-year

Positive

• Regained NYSE listing compliance
• Revenue growth of 40% to $17.2M in H1 2024
• Shareholder equity increased 109% to $19.7M
• Debt reduction of $5.6M through equity conversion

Negative

• Previous listing compliance issues indicate past financial challenges

Insights

Financial Analyst

The restoration of NYSE listing compliance marks a pivotal transformation in DDC Enterprise's market position and financial structure. The successful conversion of $5.6 million in debt to equity not only strengthens the balance sheet but also signals management's ability to execute complex financial restructuring while maintaining operational growth.

The 109% increase in shareholder equity to $19.7 million is particularly significant as it addresses fundamental listing requirements while creating a more robust capital structure. This improvement in equity position enhances DDC's ability to attract institutional investors and potentially access more favorable financing terms in the future.

The 40% revenue growth to $17.2 million demonstrates strong market execution in the competitive Asian food sector. This growth, combined with the improved financial position, creates a stronger foundation for potential market expansion and strategic investments. The debt conversion strategy effectively balances growth financing needs with shareholder dilution concerns, while maintaining operational momentum in their core markets.

Maintaining NYSE listing status is important for market visibility and liquidity, particularly for companies in growth phases. This compliance not only preserves shareholder value but also provides DDC with enhanced credibility and access to capital markets, essential for executing their Asian food market expansion strategy. The combination of improved financial metrics and maintained listing status positions DDC more favorably for potential strategic partnerships or market consolidation opportunities in the evolving Asian food sector.

NEW YORK--(BUSINESS WIRE)-- DDC Enterprise, Ltd. (NYSEAM: DDC), (“DayDayCook,” “DDC,” or the “Company”), a leading multi-brand Asian consumer food company, today announced that it has regained compliance with the New York Stock Exchange (“NYSE”) continued listing standards set forth in Part 10 of the NYSE American Company Guide. The Company has resolved the continued listing deficiency with respect to Section 1003(a)(i) referenced in a NYSE letter dated April 23, 2024.

“We have made tremendous strides in improving our stockholder’s equity through debt conversions and capital raises and we are excited to regain compliance with continued listing standards on the NYSE-AM exchange,” said DDC’s chief executive officer Norma Chu. “The improvements are another step in creating stockholder value and building a leading Asian food company.”

On 31 December 2024, DDC released its unaudited first half 2024 results. DDC reduced USD 5.6 million in debt by converting debt into equity. Shareholder equity increased by 109% to US$19.7 million compared to the year ended 31 December 2023. Total revenue increased by 40% to USD 17.2 million versus the same period a year ago.

ABOUT DAYDAYCOOK

DayDayCook is on a mission to share the joy of Asian cooking culture with the world, offering a suite of accessible and healthy ready-to-eat, ready-to-cook, and ready-to-heat products that cater to the global palate. DayDayCook has evolved from a culinary content authority to a multi-brand powerhouse, curating a broad range of products that champion authenticity, nutrition, and convenience. The company's growing portfolio includes DayDayCook, Nona Lim, Yai’s Thai, Omsom, MengWei, and Yujia Weng. Follow the Company on LinkedIn.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements, including, for example, statements about NYSE and SEC compliance, estimated revenue, margins, cash and growth and expansion. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are also based on assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250214595116/en/

Investors:

Jeff Ervin

jeffervin@daydaycook.com

Media:

PR@daydaycook.com

Source: DDC Enterprise, Ltd.

FAQ

What were DDC's H1 2024 financial results?

DDC reported revenue growth of 40% to $17.2 million, increased shareholder equity by 109% to $19.7 million, and reduced debt by $5.6 million through equity conversion.

How did DDC resolve its NYSE listing compliance issues?

DDC regained compliance by improving stockholder's equity through debt conversions and capital raises, resolving the Section 1003(a)(i) deficiency cited in April 23, 2024.

What was DDC's debt reduction strategy in 2024?

DDC reduced $5.6 million in debt by converting it into equity, which helped improve the company's financial position and NYSE listing compliance.

How much did DDC's shareholder equity increase in H1 2024?

DDC's shareholder equity increased by 109% to $19.7 million compared to December 31, 2023.