Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 258

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 258
---
  Property, plant and equipment, net                                    118,574  
  Intangible asset - Brand name                                         213,096  
  Intangible asset - Customer relationship                              339,470  
  Operating lease Right-of-use assets                                   482,413  
  Contract liabilities                                                  ( 4,927  
  Accrued expenses and other current liabilities                      ( 430,507  
  Current portion of operating lease liabilities                       ( 93,468  
  Operating lease liabilities                                         ( 388,945  
  Deferred tax liabilities                                             ( 91,173  
  Total identifiable assets acquired and liabilities assumed            623,856  
  Add: Fair value of equity held by non-controlling interest **       1,744,476  
  Goodwill                                                            3,399,342  

  The Company determined the fair value of the Company’s preferred shares with the assistance of an independent third-party valuation firm, utilizing the discounted cash flow method to determine ...  

  The fair value of the non-controlling interest in Lin’s was measured based on significant inputs that are not observable in the market and thus represents a Level 3 measurement. Key assumption ...  

F-65

16. BUSINESS COMBINATION(cont.)

Lishang

On May 1, 2022, Shanghai DayDayCook entered into
a purchase agreement with Ms. Chen Di and two other her nominee shareholders (“the Seller”) to acquire51% equity interest
of Shanghai Lishang Trading Limited (“ Lishang”). Lishang is principally engaged in sales of RTC and RTE product gift boxes.

Acquisition of Lishang shall diversify the Company’s
existing business portfolio and broaden the source of income of the Company.

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 Lishang on May 1, 2022.

The total consideration payable by the Company
includes a fixed cash consideration of RMB2.9million to be paid in four installments.

In addition, the Company may be required to grant
share options to the Lishang Seller which was accounted for as share-based compensation (note 20).

The Company made estimates and judgments in determining
the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar
assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is as follows:

  Consideration - Cash payable