Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 286

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 286
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 underlying ordinary share      US$ 6.32 - US$ 13.04  
  Expected terms                               10 years              

As of December 31, 2023, the Company recognized
compensation expenses of RMB77,619,967in connection with the IPO completed, there were RMB32.0million of unrecognized compensation expenses
for non-vested options. The expense is expected to be recognized over a weighted average period of3.42years using the graded- vesting
attribution method. The Company did not capitalize any of the compensation expenses as part of the cost of any asset for the year ended
December 31, 2023.

As of December 31, 2024, the Company recognized
compensation expenses of RMB19,143,702. The expense was recognized using the graded-vesting attribution method. The Company did not capitalize
any of the compensation expenses as part of the cost of any asset for the year ended December 31, 2024.

F-85

21. FAIR VALUE MEASUREMENT

The following tables present the fair value hierarchy
for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2024:

                           As of December 31, 2023                                                Total Fair                  
                           Level 1                      Level 2      Level 3                      Value                       
                           RMB                          RMB          RMB                          RMB                         
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Liabilities                                                                                                                 
  Warrant liabilities                                                                 87,279                          87,279  
  Convertible loans                                                               14,336,844                      14,336,844  
  Total                                                                           14,424,123                      14,424,123  

                         As of December 31, 2024                                                Total Fair                  
                         Level 1                      Level 2      Level 3                      Value                       
                         RMB                          RMB          RMB                          RMB                         
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Liabilities                                                                                                               
  Convertible loans                                                             10,076,081                      10,076,081  
  Total                                                                         10,076,081                      10,076,081  

F-86

21. FAIR VALUE MEASUREMENT(cont.)

The table below reflects the reconciliation from
the opening balances to the closing balances for recurring fair