Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 253

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 253
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 standard form for unlimited amount from the Company’s subsidiaries, Grand Leader Technology
Limited, DDC OpenStudio Media Limited and DDC OpenStudio Limited, and guarantee in HSB’s standard form for US$10.0million from
Ms. Norma Ka Yin Chu and Mr. Samuel Derk Shuen Lim, spouse of the Founder. After HSB received these guarantees, US$5.0million was drawn
down under RLN1 in November 2021, bearing an interest rate of4.25%, repayable within 6 months from the first date of draw down and can
be rolled over as agreed by HSB. Conditions for drawdown of RLN2 were not met as of December 31, 2022 and 2023, respectively. The Company
is required to maintain an account with HSB for deposit of the amount not less than the total loan outstanding balance after the first
drawdown of this facility and may not withdraw the funds in the account except for repayment of this facility. The facilities include
certain non-financial covenants and also financial covenants for the Company to achieve certain financial targets at the end of 2022,
and cash and bank balances including restricted cash shown on the Company’s audited consolidated financial statement shall not be
less than US$10.0 million or equivalent on other currencies. These financial targets have not been achieved. In 2023, HSB agreed further
rollover until mid-September 2023 with the same terms. Principal of US$5.0million (equivalent to RMB35,222,500) including all related
interests were fully repaid in 2023. As of December 31, 2022 and 2023, the short-term bank borrowings balance was US$5.0million (equivalent
to RMB34,823,000) and nil, respectively.

In November 2021, Weishi, one of the Company’s
VIEs entered into three eleven-month loans agreements with Zhejiang E-Commerce Bank, with total principal amount of RMB1,452,000and bearing
an interest rate of9.6% per annum. The Company repaid RMB121,000and RMB363,000in 2021 and 2022, respectively. As of March 31, 2022,
the outstanding loans amounted to RMB986,000. As described in note 1, the Company deconsolidated this V