Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 273

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 273
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  Goodwill                                                                                  3,130,890  

  The                                                                                                                                       

  Consideration - Share options                                                              8,683,415  
  Less: Identifiable net assets acquired of the KeKe Target Assets as of June 17, 2022                  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────
  Inventories                                                                                  544,261  
  Prepayments and other current assets                                                      10,178,171  
  Intangible asset – Customer relationship                                                   1,000,000  
  Deferred tax liabilities                                                                   ( 250,000  
  Total identifiable assets acquired and liabilities assumed                                11,472,432  
  Add: Fair value of equity held by non-controlling interest *                               4,631,154  
  Goodwill                                                                                   1,842,137  

  The                                                                                                                                       

F-72

16. BUSINESS
COMBINATION(cont.)

Cook SF

On May 26, 2023, the Company entered into a purchase
agreement with Ms. Nona Lim and other selling shareholders to acquire100% interest in Cook San Francisco, LLC. (“ Cook SF”).
Cook SF operates the brand “ Nona Lim”, an Asian food brand sells RTC product based in USA. This acquisition enables the Company
to expand its customer base into the US market.

The transaction was accounted for under the acquisition
method of accounting in accordance with ASC 805, Business Combinations. The acquisition was completed when the Company obtained control
over Cook SF on July 1, 2023.

The subscription consideration includes cash
consideration of US$1,977,516(equivalent to RMB13.71million), and payable consideration of US$1,318,374(equivalent to RMB9.53million) settled in certain ordinary shares. The Company also funded the extinguishment of the Cook SF’s debt of cash consideration
of US$ $25,000(equivalent to RMB0.18million), and payable consideration of $348,000(equivalent to RMB2.51million) settled in
certain ordinary shares.

As of December 31, 2023, the Company has paid
all the cash consideration and issued certain ordinary shares.

The Company made estimates and judgments in determining
the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar
assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is