Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 101

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 101
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The increase in total revenue
was mainly due to the increase in offline consumer product sales of RMB258.3 million (US$35.4 million) compared to RMB173.8 million for
the year ended December 31, 2023, representing a 48.6% increase.

For the year ended December 31, 2024, we incurred net loss of RMB157.0
million (US$21.5 million) and net loss of RMB162.0 million for the year ended December 31, 2023. We also had negative cash flows from
operating activities of RMB112.9 million (US$15.5 million) and RMB89.4 million for the years ended December 31, 2024 and 2023 respectively.

Management uses the adjusted EBITDA, non-GAAP financial measures, in
evaluating our operating results and for financial and operational decision-making purposes. For the years ended December 31, 2024 and
2023, we incurred an adjusted EBITDA with loss of RMB25.4 million (US$3.5 million) and loss of RMB38.6 million respectively. For details,
please refer to section “ Non-GAAP Financial Measure”.

Key Factors Affecting Our Results of Operations

There are several macro and
microeconomic factors that contributed to the growth of our business, specifically the RTC, RTH, RTE and plant-based product and service
markets in China and the United States. These include (but are not limited to):

  China’s rapid economic growth and urbanization, which has resulted in an increase in per capita annual disposable income;  
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  China’s investments in its technological infrastructure and increase  
  in internet and mobile subscriber penetration rates;                  
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  Favorable domestic social, governmental, and economic reforms centered on promoting a healthier lifestyle and life-choices; and  

  Broader shift in consumer preferences, trends, and purchasing behavior to convenience without compromising on quality and/or nutritional value.  

Unfavorable changes in any
of the above factors could adversely affect demand for our products and/or services and impact our results of operations.

There are specific internal
and external factors that could impact our results of operations. These include (but are not limited to):

Sales Strategy - We
rely on both growing