Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 126

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 126
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 million) was primarily attributable to non-cash adjustment related to depreciation and amortization of RMB4.7 million
(US$0.6 million), share-based compensation of RMB19.1 million (US$2.6 million), allowance for accounts receivable of RMB3.1 million (US$0.4
million), allowance for other current assets of RMB4.0 million (US$0.6 million), provision for inventories of RMB4.9 million (US$0.7 million),
impairment loss for equity investments accounted for using Measurement Alternative of RMB5.6 million (US$0.8 million), impairment loss
for intangible assets of RMB18.7 million (US$2.6 million), impairment loss on goodwill of RMB67.9 million (US$9.3 million), a decrease
in deferred tax benefit of RMB5.2 million (US$0.7 million), an increase in accounts receivable of RMB4.5 million (US$0.6 million), a decrease
in inventories of RMB4.1 million (US$0.6 million), an increase in prepayments and other current assets of RMB70.2 million (US$9.6 million),
an increase in other non-current assets of RMB12.9 million (US$1.8 million), a decrease in accounts payable of RMB9.4 million (US$1.3
million), a decrease in contract liabilities of RMB1.4 million (US$0.2 million) and an increase in accrued expenses and other current
liabilities of RMB21.3 million (US$2.9 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 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