Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 261

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 261
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3.

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 as follows:

  Considerations:                                                                           
  Consideration - Cash payable                                                  13,713,780  
  Consideration - Payable settled in certain ordinary shares                     9,526,307  
  Consideration - Extinguishment debt settled in cash                              180,645  
  Consideration - Extinguishment debt settled in certain ordinary shares         2,514,578  
  Total considerations                                                          25,935,310  
  Less: Identifiable net assets acquired as of July 1, 2023                                 
  Cash and cash equivalents acquired in the business combination                 6,796,462  
  Accounts receivable                                                              981,979  
  Inventories                                                                    3,725,134  
  Prepayments and other current assets                                           2,895,627  
  Property, plant and equipment                                                    338,595  
  Intangible asset - Brand name                                                  3,612,900  
  Accounts payable                                                             ( 3,222,859  
  Short-term bank borrowings                                                     ( 181,250  
  Current portion of long-term bank borrowings                                   ( 302,838  
  Contract liabilities                                                            ( 38,088  
  Accrued expenses and other current liabilities                              ( 13,523,241  
  Current portion of finance lease liabilities                                   ( 108,626  
  Long-term bank borrowings                                                      ( 235,451  
  Finance lease liabilities                                                       ( 88,044  
  Deferred tax liabilities                                                     ( 1,083,870  
  Total identifiable assets acquired and liabilities