Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 213

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 213
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 31,                     January 1,                  
                                                                                December 31,                                                    to                          
                                                                                                                                                August 19,                  
                                                                                2021                           2022                             2023                        
                                                                                RMB                            RMB                              RMB                         
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash and cash equivalents provided by/(used in) operating activities                        942,658                        ( 590,367                       ( 299,374  
  Net increase/(decrease) in cash                                                                 942,658                        ( 590,367                       ( 299,374  
  Cash and cash equivalents at the beginning of the year                                                -                          942,658                         352,291  
  Cash and cash equivalents at the end of the year                                                942,658                          352,291                          52,917  

Risks in relation to the VIE structure

In the opinion of management, based on the legal
opinion obtained from the Company’s local legal counsel, the ownership structures of the Company and its VIEs, do not and will not
violate any applicable local laws, regulations, or rules currently in effect; the agreements among the Company, each of the VIEs and its
nominee shareholders, governed by local laws, as described above, are valid, binding and enforceable in accordance with their terms and
applicable local laws, rules, and regulations currently in effect, both currently and immediately after giving effect to the listing in
capital market, and do not and will not violate any applicable local laws, regulations, or rules currently in effect. However, there are
substantial uncertainties regarding the interpretation and application of current and future local laws and regulations. Accordingly,
if the local government finds that the contractual arrangements do not comply with its restrictions on foreign ownership of businesses,
or if the local government otherwise finds that the Company and the VIEs are in violation of local laws or regulations or lack the necessary
permits or licenses to operate the Company’s business, the relevant regulatory authorities would have broad discretion in dealing
with such violations, including:

  revoking the business and operating licenses of the Company;  

F-27

1. DESCRIPTION
OF BUSINESS AND ORGANISATION(cont.)

  discontinuing or restricting the operations;  

  imposing fines or confiscating any of VIEs’ income that they deem to have been obtained through illegal operations;  

  imposing conditions or requirements with which the Company