Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 212

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 212
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 Total cash and cash equivalents held at online and mobile financial institutions                                  49,303                     5,174  
  Total cash and cash equivalent balances held at financial institutions                                        78,641,083                60,957,156  
  Total cash and cash equivalent balances                                                                       78,790,697                60,957,156  

F-29

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(i) Restricted Cash

Cash that is restricted for withdrawal or use
is reported separately on the face of the consolidated balance sheets. As of December 31, 2023 and 2024, due to certain closed and pending
legal proceedings, bank accounts with the balances of RMB497,108and nilwere frozen by the banks. Liabilities related to such legal proceedings
were recorded in “ Accrued expenses and other current liabilities” in the consolidated balance sheets as it is probable that
the liabilities have been incurred and the amount of loss can be reasonably estimated.

                                                  As of December 31,                         
                                                  2023                                 2024  
 ─────────────────────────────────────────────────────────────────────────────────────────────
                                                  RMB                                  RMB   
  Restricted Cash balances in:                                                               
  Financial institutions in Chinese mainland                                                 
  — Denominated in the RMB                                                497,108            
  Total Restricted Cash balances                                          497,108            

(j) Short-term Investment

Short-term investment represents the Company’s
investments in financial products managed by financial institutions which are redeemable at the option of the Company on any working day
or have the original maturities of less than twelve months. The Company measures the short-term investments at fair value using the quoted
prices or redemption prices provided by financial institutions at the end of each reporting period, with unrealized holding gains or losses,
net of the related tax effect, excluded from earnings and recorded as a separate component of accumulated other comprehensive loss until
realized. Realized gains or losses from the sale of short-term investments are determined on a specific identification basis and are recorded
as gain on short-term investments when earned in the consolidated statements of operations and comprehensive loss.

(k) Contract Balances

The timing of revenue recognition, billings and
cash collections result in accounts receivable, net and contract liabilities. A contract liability is recognized when the Company has
an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer, or for which
an amount of consideration is due from