Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 2

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 2
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,319  
  Impairment loss for equity investments accounted for using measurement alternative                           22,705,285         8,288,296         5,645,887          773,483  
  Impairment loss on goodwill                                                                                           —         6,592,220        67,932,627        9,306,732  
  Gain from deconsolidation of VIEs                                                                           (13,543,650          (134,665                 -                -  
  Other income                                                                                                 (1,599,746          (421,449        (1,912,396         (261,997  
  Other expenses, net                                                                                                   —        10,440,057                 -                -  
  Changes in fair value of financial instruments                                                                1,875,889       (17,101,260        (4,803,913         (658,133  
  Depreciation and amortization                                                                                 3,544,322         6,107,400         4,673,551          640,274  
  Share-based compensation and related expenses                                                                38,993,201        83,863,299        19,143,702        2,622,676  
  Adjusted EBITDA                                                                                             (37,466,773       (38,648,860       (25,362,122       (3,474,596  

3. A. [Reserved]

3. B. Capitalization and Indebtedness

Not applicable.

3. C. Reasons for the Offer and Use of Proceeds

Not applicable.

3. D. Risk Factors

Risks Related to Our Business and Industry

Our business and future growth prospects
rely on consumer demand for our products. Any shift in consumer demand, or any unexpected situation with a negative impact on consumer
demand may materially and adversely affect our business and results of operations.

Our business relies on consumer
demand for our products, which depends substantially on factors such as (i) economic growth and increasing disposable income; (ii) diversified
consumption scenarios and increasing consumption frequency; (iii) continuous product innovation and upgrade; and (iv) increasing
development and improvement of sales channels. Changes in any of the above at any time could result in decline in consumer demand for
our products. Our business development will depend partially on our ability to (i) anticipate, identify or adapt to such changes,
(ii) introduce new attractive products and marketing strategies in a timely