Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 289

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 289
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 Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist principally of cash and cash equivalents, restricted cash, accounts receivable, net, other receivables, short -termand long -termdeposits, receivables of supplier rebates, prepayments and other receivables due from YJW and KeKe. The Company’s investment policy requires cash, cash equivalents and restricted cash to be placed with high quality financial institutions and to limit the amount of credit risk from any one institution. The Company regularly evaluates the credit standing of the counterparties or financial institutions. Accounts receivable, net, derived from product sales and provision of services on the Company’s E -commerceplatforms and retail stores, as well as other receivables, deposits and other current assets (note 7), are exposed to credit risk. The assessment of the counterparties’ creditworthiness is primarily based on past history of making payments when due and current ability to pay, taking into account information specific to the counterparties as well as pertaining to the economic environment in which the counterparties operate. Based on this analysis, the Company determines what credit terms, if any, to offer to each counter party individually. If the assessment indicates a likelihood of collection risk, the Company will not deliver the services or sell the products to or through the counterparties or require the counterparties to pay cash in time to secure payment. Concentration of customers and suppliers One customer individually represents greater than 10.0% of total revenues of the Company for the years ended December 31, 2024.

|            |     | For the Years Ended December 31, |     |                |   |     |                |   |
|            |     |                             2022 |     |           2023 |   |     |           2024 |   |
|            |     |                    proportion of 
                   total revenues |     |  proportion of 
 total revenues |   |     |  proportion of 
 total revenues |   |
| Customer A |     |                                * |     |           13.1 | % |     |           22.1 | % |

____________ *Less than 10.0% of the Company’s revenue in the respective years. Three customers represent greater than 10.0% of total accounts receivable, net balance of the Company as of December 31, 2023 and 2024, respectively. Accounts receivable, net balances from these customers are as follows:

|