DDC Completes Joint Venture to Scale Ready-Made Meal Business with USD 15M Profit Commitment
Strategic partnership targets booming ready-to-eat market, combining DDC's innovative brands with Hewen's production expertise
DDC Enterprise, Ltd. (NYSEAM:DDC) ("DayDayCook," "DDC," or the "Company"), a leading multi-brand Asian consumer food company, today announced the completion of a joint venture (JV) with Hewen Agricultural Technology Limited ("Hewen"), a premium prepared-meal producer, to scale delivery of ready-to-eat (RTE) solutions for major e-commerce platforms, restaurant chains, and direct-to-consumer (DTC) brands. Hewen has committed to generating USD 15 million in profits for the JV over the next five years, with annual dividends distributed to shareholders. The JV, in which DDC owns 51% will be consolidated under DDC's subsidiaries, is expected to expand production capacity and distribution reach across China's fast-growing RTE sector.
"This partnership accelerates our mission to redefine convenience in Asian cuisine," said Ms. Norma Chu, Chairwoman and CEO of DDC. "By combining DDC's innovation-driven brands with Hewen's localized production expertise, we're poised to capture the surging demand for high-quality, health-focused meal solutions across China's digital and offline ecosystem."
"Our collaboration with DDC marks a transformative step for China's prepared-food industry," added Mr. Wenbo Qin, CEO of Hewen. "With aligned priorities in quality and scalability, this JV will set new benchmarks for culinary excellence and operational efficiency."
Under the terms of the JV, DDC will issue 800,000 restricted shares to Hewen, which will be released annually upon the JV achieving its profit targets of over RMB 100 million (USD 15 million) in total from 2025 through 2029. Dividends will be distributed to shareholders proportionally after annual profit milestones are met. The shares will be issued within 10 business days of the JV's establishment and unlocked incrementally as Hewen fulfills its commitments.
Operational Highlights:
- The JV will leverage Hewen's production infrastructure and R&D capabilities to expand distribution to platforms like Douyin (TikTok), restaurant chains, and DTC brands.
- Hewen guarantees annual post-tax profits exceeding RMB 20 million (USD 3 million), totalling RMB 100 million (USD 15 million) over 5 years, reinforcing the partnership's financial viability.
- The collaboration strengthens DDC's foothold in China's RTE market, projected to grow at double-digit rates through 2030.
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.
ABOUT HEWEN
Hewen Agricultural Technology was founded in 2015, specializes in producing pre-made and convenience meal solutions providing catering services and RTE products, emphasizing health, convenience, and premium quality. Its customer base includes renowned brands like Haidilao, Xi Bei, and Dingdong Maicai, the company delivers standardized culinary solutions while maintaining a focus on innovation and market expansion. Committed to shaping healthier trends in Chinese cuisine, it continues to strengthen its industry leadership through advanced production know-how and customer-centric offerings.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements, including, for example, statements about completing definitive agreements with Hewen Agricultural Technology to form a joint venture to expand sales and distribution network in the Mainland China market, 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.
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