Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 294

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 294
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                                      2023                       2024                    
                                            RMB                                       RMB                        RMB                     
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Balance at the beginning of the year                                87,212,118                52,114,383                 49,257,980    
  Decreases                                                         ( 17,998,241                ( 2,856,403                ( 12,419,922  
  Disposal                                                          ( 17,092,747                -                          -             
  Expired during year                                                    ( 6,747                -                          -             
  Balance at the end of the year                                      52,114,383                49,257,980                 36,838,058    

c) Uncertain Tax Positions

The benefits of uncertain tax positions are recorded
in the Company’s consolidated financial statements only after determining a more-likely-than-not probability that the uncertain
tax positions will sustain, if examined by taxing authorities.

As of December 31, 2022, 2023 and 2024, the
amounts of unrecognized tax benefits were RMB3.4million, niland nilrespectively, which would affect the Company’s effective income
tax rate.

F-93

23. INCOME TAX(cont.)

A reconciliation of unrecognized tax benefits from continuing operations
is as follows:

                                                    As of December 31,                                                      
                                                    2022                                   2023                       2024  
                                                    RMB                                    RMB                        RMB   
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Unrecognized tax benefits, beginning of year                              -                        3,417,532              
  Increases                                                                 3,417,532                -                      
  Decrease                                                                  -                        ( 3,417,532            
  Unrecognized tax benefits, end of year                                    3,417,532                -                      

The Company classifies interest and penalties
related to uncertain tax benefits as interest expense and general and administrative expense, respectively.

The Company recognizes the benefit of positions
taken or expected to be taken in tax returns in the financial statements when it is more-likely-than-not that the position would be sustained
upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than50% likely
of being realized upon settlement.

Due to uncertainties under the tax law, positions
taken on tax returns may be challenged and ultimately