Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 278

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 278
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per share and any change of the fair value of the 2017 Option was recorded in “changes
in fair value of financial instruments” in the consolidated statements of operations and comprehensive loss.

In addition, upon the closing of the Series C
redeemable convertible preferred shares financing, the Company issued47,500Series C redeemable convertible preferred shares to holders
of March 2019 Convertible Loan who elected to convert all of their March 2019 Convertible Loan (note 18); the Company also agreed with
the holders of the March 2019 Shareholder Loan (note 18) to modify the settlement that the March 2019 Shareholder Loan were settled by
the Company issuing75,643Series C redeemable convertible preferred shares to the loan holders.

F-76

17. REDEEMABLE CONVERTIBLE PREFERRED SHARES(cont.)

In February 2021, the Company completed a C-1
round financing. The Company issued262,395Series C-1 redeemable convertible preferred shares to a new investor (“ HL”), at
US$38.08per share for a total cash consideration of US$10.0million, and concurrently issued582,819number of warrants (“the 2021
Warrant”) at a total consideration of US$1.0to HL. In addition, HL was granted an option (“the HL Option”) to subscribe
for additional C-1 redeemable convertible preferred shares at the lower of (i) a price being30% discount of the pre- money valuation
of the ordinary shares of the Company at the subsequent round of financing of the Company on a fully-diluted basis or (ii) the quotient
of (x) US$10.0million, and (y) the total number of subscription shares (262,395) and warrants (582,819), i. e., US$11.8320. The aggregate
option price shall not exceed US$5,000,000. The HL option has an exercise period of2years from the closing date of the C-1 financing
transaction.

Concurrently, the Company issued132,855Series
C-1 redeemable convertible preferred shares to certain existing investors (“ C-1 investors”) at US$38.08per share for a total
cash consideration of US$5.1million and issued shareholder loans of US$4.9million to these C-1 investors, which bear a fixed interest
rate of8.0% per annum and are repayable within