Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 215

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 215
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 be generated by the asset when the market prices are not readily
available. The adjusted carrying amount of the asset is the new cost basis and is depreciated over the asset’s remaining useful
life. Long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely
independent of the cash flows of other assets and liabilities.

Impairment of intangible assets recognized for the years ended December
31, 2022 2023 and 2024 was nil, niland RMB18,720,464respectively. (note 10)

F-32

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(q) Goodwill

Goodwill represents the excess purchase price
over the estimated fair value of net assets acquired in a business combination.

Goodwill is not amortized but is tested for impairment
annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Company first assesses qualitative
factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In the
qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance
of the reporting unit, and other specific information related to the operations. If the Company decides, as a result of its qualitative
assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the quantitative
impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of
the fair value of each reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, an
impairment loss equal to the difference will be recorded. Application of a goodwill impairment test requires significant management judgment,
including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting
units, and determining the fair value of each reporting unit. The judgment in estimating the fair value of reporting units includes estimating
future cash flows, determining appropriate discount rates and making other assumptions. Changes in these estimates and assumptions could
materially affect the determination of fair value for each reporting unit. The Company performs goodwill impairment testing at the reporting
unit level on December 31 annually and more frequently if indicators of impairment exist.

(r) Leases

On January 1, 2022, the Company adopted Accounting
Standards Codification Topic 842 (ASC