Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 243

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 243
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───────────────────────────────────────────────────────────────
  Current period provision                                           ( 4,324,627                ( 5,334,098                ( 3,481,333  
  Write-offs                                                         4,324,627                  5,334,098                    1,502,540  
  Balance at the end of the year                                     -                          -                            1,978,793  

As of report date, approximately93.5% of the
Company’s net accounts receivable balance at December 31, 2023 have been subsequently collected.

F-50

6. INVENTORIES, NET

Inventories consisted of the following:

                                     As of December 31,                                           
                                     2022                                   2023                  
 ──────────────────────────────────────────────────────────────────────────────────────────────────
                                     RMB                                    RMB                   
  Raw materials                                                      -                   182,882  
  Finished goods                                             6,297,052                10,478,683  
  Less: allowance for provision                              ( 181,499                 ( 677,465  
  Inventories, net                                           6,115,553                 9,984,100  

The movement of the allowance for inventory valuation
is as follows:

                                            For the Years Ended                                                                     
                                            December 31,                                                                            
                                            2021                                      2022                     2023                 
                                            RMB                                       RMB                      RMB                  
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Balance at the beginning of the year                                         -                 ( 59,960                ( 181,499  
  Current year provision                                             ( 1,259,972                ( 149,075                ( 802,807  
  Write-downs                                                          1,200,012                   27,536                  306,841  
  Balance at the end of the year                                        ( 59,960                ( 181,499                ( 677,465  

Write-downs of RMB1,200,012, RMB27,536and RMB306,841were made to the inventories and recorded in cost of revenues for the years ended December 31, 2021, 2022 and 2023, respectively.
Provisions of RMB1,259,972, RMB149,075, RMB802,807were made to the inventories for the year ended December 31, 2021,