Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 241

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 241
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) Limited (“ Good Food”) for a cash consideration of US$0.1million(equivalent to RMB0.7million), for1.43% equity interests. The Company does not have significant influence over Good Food and elected
to measure the equity investment without a readily determinable fair value at cost adjusted for changes resulting from impairments, if
any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer. As of December 31,
2022 and 2023, the Company made a qualitative assessment and considered there were impairment indicators that investment in Good Food
was impaired as of December 31, 2023, as it suffered significant loss and the net liabilities amounting to approximately RMB13.6million.
As a result, the investment in Good Food was written down to nilas of December 31, 2023.

F-51

9. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, as of December 31,
2023 and 2024 consisted of the following:

                                      As of December 31,                                               
                                      2023                                      2024                   
 ───────────────────────────────────────────────────────────────────────────────────────────────────────
                                      RMB                                       RMB                    
  Electronic equipment                                           3,403,193                   3105,645  
  Office equipment and other                                     4,241,801                  4,272,163  
  Operating equipment                                              335,758                    340,768  
  Leasehold improvement                                          2,695,298                  2,806,798  
  Property, plant and equipment                                 10,676,050                  10,525374  
  Less: Accumulated depreciation                              ( 10,073,015                ( 9,951,599  
  Total                                                            603,035                    573,775  

Depreciation
expenses on property, plant and equipment were allocated to the following expense items:

                                           For the Years Ended                                                             
                                           December 31,                                                                    
                                           2022                                  2023                   2024               
                                           RMB                                   RMB                    RMB                
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cost of revenues                                                  121,565                 67,992                      -  
  Sales and marketing expenses                                      192,728                 59,465                100,719  
  General and administrative expenses                               111,295