Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 206

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 206
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 expenses                           ( 120,788           ( 53,295  
  Interest income                                   552                  -  
  Other income                                5,435,722            438,632  
  Loss before income tax expenses           ( 3,522,574        ( 1,055,203  
  Income tax expense                            ( 1,987                  -  
  Net loss                                  ( 3,524,561        ( 1,055,203  

                                                                         For the year      For the three  
                                                                                  RMB                RMB  
  Net cash and cash equivalents used in operating activities              ( 5,600,217          ( 699,318  
  Net cash and cash equivalents used in investing activities                 ( 96,601            ( 8,550  
  Net cash and cash equivalents provided by financing activities            5,664,537            796,488  
  Net (decrease)/increase in cash                                            ( 32,281             88,620  
  Cash and cash equivalents at the beginning of the year                       66,239             33,958  
  Cash and cash equivalents at the end of the year/termination date            33,958            122,578  

F-23

1. DESCRIPTION OF BUSINESS AND ORGANISATION(cont.)

The VIE arrangements with Mengwei Stores

The Company acquired a business engaging in the
online sales of self-heated hotpots through a number of online stores (“ Mengwei Stores”) in January 2021 (note 16).

The Company operates these online stores on E-commerce
platform in the PRC through Chongqing Meng Wei Technology Co., Ltd., Chongqing Yizhichan Leisure Food E-commerce Service Department and
Chongqing Wei Bang Internet Technology Co., Ltd. (“the Transferors”). The legal names of these stores are registered with
the E-commerce platforms under the Transferors as nominal holders. A series of contractual agreements including Purchase Agreement and
Store Operation Agreements (collectively, the “ Mengwei Stores VIE Agreements”), were entered among Shanghai DayDayCook, and
the Transferors.

Pursuant to these contractual agreements, the
Company is able to exercise effective control over, bear the risks of, and enjoy substantially all of the economic benefits of Mengwei
Stores and have the right to, including without limitation to, control such online stores with the assets within the stores. The Company’s
management concluded that Mengwei Stores is a VIE and Shanghai Day