Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 254

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 254
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IE as the result of termination
of the Weishi VIE arrangement. Accordingly, this loan payable was derecognized in the Company’s consolidated balance sheet in 2022.

In November 2021, Farm Entities, one of the Company’s
VIEs entered into two one-year revolving credit facility agreements with Shanghai Rural Commercial Bank (“ SRCB”), which allows
the Farm Entities to draw borrowings up to RMB300,000and RMB800,000, respectively for general working capital purposes. The borrowings
drawn from these facilities as of March 31, 2022, amounted RMB1.1million and bore an interest rate of4.35% per annum, and was guaranteed
by the general manager of Farm, Mr. Cui Yixiong and his spouse Ms. Wang Yike. As described in note 1, the Company deconsolidated Farm
Entities due to termination of the Farm Entities VIE arrangement. Accordingly, these loan payables were derecognized in the Company’s
consolidated balance sheet in 2022.

F-59

13. BANK BORROWINGS(cont.)

In November 2021, the Company entered into a banking facility
with HSBC for a US$2,000,000and a US$4,000,000loan, to finance the Company’s listing expenses. The facility includes certain non-financial
covenants and also financial covenants for the Company to maintain average account balance not less than US$10.0 million in a HSBC Hong
Kong account. The facility is only available upon HSBC’s receipt of guarantees in HSBC’s standard form for US$6.0million
from Ms. Norma Ka Yin Chu and Mr. Samuel Derk Shuen Lim, spouse of the Founder. After HSBC’s receipt of the guarantees, US$2,000,000was drawn down by December 31, 2021 and would mature on June 16, 2023, repayable in 11 equal installments commencing 1 month after drawdown,
bearing an interest rate of LIBOR+3.5% per annum. This loan was fully repaid in July 2023. As of December 31, 2022, the outstanding loan
amounted to US$335,260(equivalent to RMB2,334,952). The unused credit limit under this facility was US$4.0million as of December 31,