Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 123

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 123
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 Shuen Lim, spouse of the Founder. After HSB received these guarantees, US$5.0 million
was drawn down under RLN1 in November 2021, bearing an interest rate of 4.25%, 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$5.0 million (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$5.0 million
(equivalent to RMB34,823,000) and nil, respectively.

In November 2021, the Company
entered into a banking facility with HSBC for a US$2,000,000 and a US$4,000,000 loan, to finance the Company’s listing expenses.
The facility includes certain non-financial covenants and also financial covenants for the Company to maintain average account balance
not less than US$10.0 million in a HSBC Hong Kong account. The facility is only available upon HSBC’s receipt of guarantees in HSBC’s
standard form for US$6.0 million from Ms. Norma Ka Yin Chu and Mr. Samuel Derk Shuen Lim, spouse of the Founder. After HSBC’s receipt
of the guarantees, US$2,000,000 was drawn down by December 31, 2021, repayable in 11 equal installments commencing 1 month after drawdown,
bearing