Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 329

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 329
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                                                  RMB                                     RMB                   
  Amounts due to Mr. Samuel Derk Shuen Lim                                14,120,050                14,231,755  
  Amounts due to Ms. Norma Ka Yin Chu                                      5,096,559                 3,373,939  
  Amounts due to Ms. Katherine Shuk Kwan Lui                                 179,101                         -  
  Amounts due to related parties                                          19,395,710                17,605,694  

During the years ended December 31,
2022 and 2023, loans due to shareholders were described in note 18.

F-113

29. RESTRICTED NET ASSETS

The Company’s subsidiaries incorporated
in the PRC are required to annually appropriate10% of their after-tax profit calculated in accordance with GAAP of the People’s
Republic of China (“ PRC GAAP”) to a general reserve fund unless such funds have reached50% of their respective registered
capital. The Company’s VIEs incorporated in the PRC are also required to annually appropriate10% of their after-tax profit calculated
in accordance with PRC GAAP to a statutory surplus fund unless such funds have reached50% of their respective registered capital. In
addition, the Company’s subsidiaries, the VIEs can also, at their discretion, appropriate the enterprise expansion fund and discretionary
surplus fund, prior to payment of dividends. Furthermore, the Company’s subsidiaries, the VIEs cannot distribute dividends out of
their respective registered capital without the prior governmental approvals. Except for the registered capital and statutory reserve
requirements stated above, there is no other restriction on the net assets of the Company’s subsidiaries and the VIEs to satisfy
any obligations of the Company.

The Company performed a test on the restricted
net assets of consolidated subsidiaries and VIEs in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08
(e) (3), “ General Notes to Financial Statements”. The Company disclosed the parent-company-only condensed financial information
in Note 30.

30. CONDENSED FINANCIAL STATEMENTS OF THE COMPANY

  (a)      Condensed       

                                                                         As of December 31,                                                                             
                                                                         2022                                     2023                                                  
                                                                         RMB                                      RMB                        US$                        
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                                                                                             Note 2