Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 2

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 2
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005,303        1,550,065  
  Foreign currency exchange loss/(gain), net                                              147,413                                  (671,007            66,798            9,408  
  Impairment loss for equity investments accounted for using measurement alternative      —                                      22,705,285         8,288,296        1,167,382  
  Impairment loss on goodwill                                                             —                                               —         6,592,220          928,495  
  Gain from deconsolidation of VIEs                                                       —                                     (13,543,650          (134,665          (18,967  
  Other income                                                                            (5,581,534                             (1,599,746          (421,449          (59,360  
  Other expenses, net                                                                     266,083,985                                     —        10,440,057        1,470,451  
  Changes in fair value of financial instruments                                          60,764,404                              1,875,889       (17,101,260       (2,408,661  
  Depreciation and amortization                                                           5,110,730                               3,544,322         6,107,400          860,209  
  Share-based compensation and related expenses                                           —                                      38,993,201        83,863,299       11,811,899  
  Adjusted EBITDA                                                                         (108,509,260                          (37,466,773       (38,648,860       (5,443,579  

3. A. [Reserved]

3. B. Capitalization and Indebtedness

Not applicable.

3. C. Reasons for the Offer and Use of Proceeds

Not applicable.

3. D. Risk Factors

Risks Related to Our Business and Industry

Our business and future growth prospects
rely on consumer demand for our products. Any shift in consumer demand, or any unexpected situation with a negative impact on consumer
demand may materially and adversely affect our business and results of operations.

Our business relies on consumer
demand for our products, which depends substantially on factors such as (i) economic growth and increasing disposable income; (ii) diversified
consumption scenarios and increasing consumption frequency; (iii) continuous product innovation and upgrade; and (iv) increasing
development and improvement of sales channels. Changes in any of the above at any time could result in decline in consumer demand for
our products.