Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 322

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 322
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 the year of 2024 that were included
in the contract liabilities at the beginning of the year was RMB13,773,974.

The Company has elected the practical expedient
to not disclose the information about remaining performance obligations which are part of contracts that have an original expected duration
of one year or less.

F-109

27. COMMITMENTS AND CONTINGENCIES

Lease Commitments

As of December 31, 2023, the Company had total
future minimum lease payments under non-cancellable management fee with respect to the office are payable as follows:

                     Lease Commitment               
  Within 1 year                            144,954  
  Total                                    144,954  

Litigation and contingencies

The Company and its operations from time to time
are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to
acts of non-compliance with respect to lease contracts, which are handled and defended in the ordinary course of business. The Company
may be unable to estimate the reasonably possible loss or a range of reasonably possible losses until developments in such matters have
provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from
plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, or the
progress of settlement negotiations. The Company accrues a liability for such matters when it is probable that a liability has been incurred
and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a
range, the Company accrues the minimum amount. The Company expenses legal costs, including those expected to be incurred in connection
with a loss contingency, as incurred.

As of December 31, 2023, the Company was involved
in various claims and legal actions arising in the ordinary course of business.

The express service contract dispute between the
Company and Yiwu YuanCang Express Co., Ltd. (“ YuanCang”) had been mediated and concluded on July 17, 2024. According to the
mediation agreement, the Company was required to pay a total of RMB0.4million service fees to YuanCang.

The Company was involved in a loan contract dispute
case with an individual, Ms. Yin on June 13, 2024. Ms. Yin requested the Company to repay the loan principal of RMB1million and the