Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 120

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 120
---
 account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity
securities subject to contractual sale restrictions. The amendments in this update are effective for the Company beginning January 1,
2024 on a prospective basis. Early adoption is permitted for both interim and annual financial statements that have not yet been issued
or made available for issuance. The Company does not expect that the adoption of this guidance will have a material impact on its financial
position, results of operations and cash flows.

In November 2023, the FASB
issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to update reportable segment disclosure
requirements. The amendment is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning
after December 15, 2024, with early adoption permitted. The amendment should be applied retrospectively to all prior periods presented
in the financial statements. The Company is currently evaluating the impact that the adoption of this standard will have on its consolidated
financial statements and related disclosures.

In December 2023, the FASB
issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, amending existing income tax disclosure guidance,
primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. For public business entities,
the amendments in this ASU are effective for annual periods beginning after December 15, 2024. For entities other than public business
entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption permitted and can be applied
on either a prospective or retroactive basis. The Company is currently evaluating the impact that the adoption of this standard will have
on its consolidated financial statements and related disclosures.

5. B. Liquidity and Capital Resources

Cash Flows and Working Capital

Our sources of liquidity are
primarily from the cash earned from operating activities and cash by financing activities. Financial instruments that potentially subject
us to significant concentrations of credit risk are cash and cash equivalents. Our cash and cash equivalents consist of cash on-hand and
demand deposits placed with banks or other financial institutions which are unrestricted as to withdrawal and use and have original maturities
less than three months.

As of December 31, 2021,
2022 and December 31, 2023, RMB13.5 million, RMB26