Asian food maker DayDayCook gains as it regains NYSE compliance

Quotes on ready-to-eat food producer DayDayCook (DDC) jumped more than 8% on Friday, February 14, after the company announced it had regained compliance with one of its exchange’s listing standards. Still, the New York Stock Exchange (NYSE) discovered at least three violations last year.

On Friday, Hong Kong-based DayDayCook spiked more than 8% on the NYSE to $0.18 per share before giving up 3% in after-hours trading.

Earlier in the day, DDC announced it had regained compliance with the NYSE listing standards that require loss-making companies to have shareholders' equity of at least $2 million. DDC had previously reported negative shareholders' equity and losses, which put it at risk of being delisted. On December 31, the company reduced its debt by $5.6 million by converting it into equity, which grew 109% to $19.7 million. Its liabilities, both short-term and long-term, stood at $61.7 million as of June 30.

DDC was founded in Hong Kong in 2012 by Norma Chu. In November 2023, it went public on the NYSE, but its IPO drew little interest from investors, pricing at $8.50 per share — 10% below the lower end of the indicated range in the prospectus. Since then, the stock has lost nearly all its value, having dropped more than 97%.

In April 2024, the NYSE notified DDC of noncompliance with listing standards due to a shareholders' equity deficit. A month later, it issued a second warning, as the company had failed to submit its 2023 report on time. In an attempt to remedy the situation, DDC appointed an auditor in August, but the arrangement fell through, as the company noted in its regulatory filings.

The auditor had learned of allegations from a former service provider, who suspected the company of undisclosed related-party transactions, among other things. The auditor requested additional time to investigate these claims. However, before the firm could do that, it was dismissed by DDC. In autumn 2024, DDC appointed a new auditor and, in December, released unaudited financial results for the first half of 2024, reporting a year-over-year revenue increase of about 40% to $17.2 million.

In January 2025, DDC published its long-awaited 2023 report, revealing 16.5% year-over-year growth in revenue to $28.9 million.

However, that’s not the end of its listing violations as the NYSE’s minimum listing requirement of $1.00 per share is more than five times DDC’s current share price. The company has voiced its intention to carry out a reverse stock split but has yet to do it.

In May 2024, the NYSE initially gave DDC six months to resolve all compliance issues before later pushing the deadline back to October 25, 2025, stipulating quarterly monitoring.