Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 318

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 318
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 |  (3,222,859 | ) |
| Short-term bank borrowings                                             |     |    (181,250 | ) |
| Current portion of long-term bank borrowings                           |     |    (302,838 | ) |
| Contract liabilities                                                   |     |     (38,088 | ) |
| Accrued expenses and other current liabilities                         |     | (13,523,241 | ) |
| Current portion of finance lease liabilities                           |     |    (108,626 | ) |
| Long-term bank borrowings                                              |     |    (235,451 | ) |
| Finance lease liabilities                                              |     |     (88,044 | ) |
| Deferred tax liabilities                                               |     |  (1,083,870 | ) |
| Total identifiable assets acquired and liabilities assumed             |     |    (433,570 | ) |
| Goodwill                                                               |     |  26,368,880 |   |

Shanghai Yuli Development Limited (“Yuli”) On April 1, 2023, Shanghai DayDayCook entered into a purchase agreement with Ms. Chen Di and two other shareholders (“the Yuli Seller”) to acquire 51% equity interest of Shanghai Yuli Development Limited (“Yuli”). Yuli is principally engaged in sales of RTC and RTE gift product vouchers. Acquisition of Yuli shall diversify the Company’s existing business portfolio and broaden the source of income of the Company.

F-59

DDC ENTERPRISE LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 16. BUSINESS COMBINATION (cont.) The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. The acquisition was completed when the Company obtained control over Yuli on July 1, 2023. The total consideration payable by the Company is a fixed cash consideration of RMB4.14 million to be paid in four installments. In addition, the Company may be required to grant share options to the Yuli Seller at the end of each performance period, adjusted based on the achievement of Yuli’s revenue, gross profit and net profit for each of the four performance periods during July 1, 2023 to December 31, 2026, over the target performance. If the qualified IPO does not occur by March 31, 2026, the Company is obliged to deliver a fixed amount of RMB24.50 million cash, with all previously issued share options, if any, cancelled. As