Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 197

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 197
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, convenient ready-to-cook (“ RTC”), ready-to-heat (“ RTH”) and ready-to-eat (“ RTE”) meals while
promoting healthier lifestyle choices to its predominately Millennial and Generation Z (“ GenZ”) customer base. The Company’s
principal operations and geographic markets are mainly in the People’s Republic of China (“ PRC”).

On November 21, 2023, the Company completed its
initial public offering (“ IPO”) and issued3,900,000Class A ordinary shares for total amount of US$33.1million. The Company
received net amount of US$30.0million in total after deducting underwriting discounts, commissions and other offering expenses payable
for the amount of US$3.1million.

The VIE arrangements with Weishi

Prior to April 1, 2022, the Company operated its
internet-based business in the PRC through Shanghai Weishi Information Technology Co., Ltd. (“ Weishi”), a limited liability
company established under the laws of the PRC in February 2015. Weishi holds the necessary PRC operating licenses for the online
businesses. The equity interests of Weishi are legally held by Ms. Wang Xiaoxiao, (Co-founder and executive assistant of the CEO) who
acts as a nominee equity holder of Weishi on behalf of Shanghai DayDayCook Information Technology Co., Ltd. (“ Shanghai DayDayCook”
or “ WFOE”), the Company’s wholly-owned subsidiary. A series of contractual agreements, including Exclusive Consultancy
and Service Agreement, Exclusive Purchase Agreement, Proxy Agreement, Equity Pledge Agreement and Loan Agreement (collectively, the “ Weishi
VIE Agreements”), were entered among Shanghai DayDayCook, Weishi and its nominee equity holder and were effective until April 1,
2022, when the Company decided to terminate the VIE agreements.

Pursuant to these contractual agreements, the
Company is able to exercise effective control over, bear the risks of, and enjoy substantially all of the economic benefits of Weishi,
and has an exclusive option to purchase all of the equity interests in Weishi when and to the extent permitted by the PRC law at the lowest
price possible. The Company’s management concluded that Weishi is a VIE and WFOE is its primary beneficiary. As such, the financial
statements of Weishi are included in the consolidated financial statements of the Company.

The Weishi VIE agreements between WFOE and Weishi
have been updated with