Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 274

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 274
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 maturity of the December 2022 Convertible Loan in increment of calendar day after the first anniversary of the maturity
date, for up to the number of days between the actual date of completion of the Qualified IPO and March 31, 2023.

Loan conversion shall take place on the date of
the corporate transaction conversion date or listing of the qualified IPO. The conversion price is US$11.68per share, or a price per
share that equals to the product of X multiplied by90% (where “ X” equals US$210.0million divided by the Company’s
total number of shares immediately before Qualified IPO calculated on fully diluted basis, or a price per share that equals to90% of
the price per share of any Initial Public Offering that is not a Qualified IPO, or a price per share that equals to the implied price
per share of any corporate transaction (other than an Initial Public Offering that is not a Qualified IPO), whichever is lower.

As of December 31, 2023, The Company elected to
record the December 2022 Convertible Loan at fair value with a balance of RMB6,354,057. As of December 31, 2024, the May 2022 Convertible
Loan has been reclassified to other payables due to maturity.

December 2022 Shareholder Loan

In October 2022, the Company entered into a loan
agreement of US$2.0million with one of the shareholders. The loans bear interest of8% per annum. The Company obtained the facility in
December 2022. The repayment date is the earlier of (1) the consummation of a Qualified IPO and (2) January 22, 2024. The Company shall
repay in full the loan, together with any amounts which may become due or outstanding hereunder on the repayment date. It was recorded
as non-current liability at amortized cost and the balance as of December 31, 2022 was RMB13,929,200.

In December 2023, the Company repaid the December
2022 Shareholder Loan.

May & June 2023 Convertible Loans

In May and June 2023, the Company entered into
a number of convertible loan agreements with its employees and certain individuals (“the Lenders”) for the aggregate principal
amount of RMB6.1million and HK$0.9million (equivalent to RMB0.8million) (“the 2023