Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 130

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 130
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0.9 million), a decrease
in deferred tax benefit of RMB1.3 million (US$0.2 million), an increase in accounts receivable of RMB4.5 million (US$0.6 million), an
increase in prepayments and other current assets of RMB53.9 million (US$7.6 million), an increase in other non-current assets of RMB5.5
million (US$0.8 million), an increase in contract liabilities of RMB4.8 million (US$0.7 million) and an increase in accrued expenses and
other current liabilities of RMB22.4 million (US$3.2 million).

Investing Activities

Net cash used in investing
activities was primarily due to (a) purchases of property and equipment such as electronic equipment; (b) long-term investment,
and (c) loan to a supplier.

Net cash used in investing activities was RMB8.4 million for the year
ended December 31, 2021, primarily due to payment of consideration payable of RMB13.2 million, acquisition of short-term investments and
deposit for investment of RMB69.0 million and offsetting the proceeds from disposal of short-term investment of RMB63.6 million, collection
of an interest free loan from a supplier of RMB10.0 million for the year ended December 31, 2021.

Net cash used in investing
activities was RMB0.4 million for the year ended December 31, 2022, primarily due to a RMB2.0 million payment for acquisition considerations,
RMB0.3 million cash paid for acquiring a long-term investment, and RMB2.2 million of cash acquired from business combinations.

Net cash used in investing
activities was RMB135.2 million (US$19.0 million) for the year ended December 31, 2023, primarily due to acquisition of short-term investments
and deposit for investment of RMB121.8 million (US$17.2 million), prepayment of deposit for a potential acquisition of RMB4.0 million
(US$0.6 million), payment of consideration payable resulted from acquisition of Cook San Francisco, LLC. of RMB13.9 million (US$2.0 million),
payment of consideration payable resulted from acquisition of Lishang of RMB2.4 million (US$0.3 million), and RMB7.9 million (US