Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 128

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 128
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                                                    2021             2022              2023                   
                                                                                                                     RMB              RMB               RMB                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash used in operating activities                                                                      (91,425,290      (37,083,065       (89,350,546      (12,584,764  
  Net cash used in investing activities                                                                       (8,357,262         (444,627      (135,161,792      (19,037,141  
  Net cash provided by financing activities                                                                  115,757,055       51,352,149       216,003,395       30,423,441  
  Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash               2,652,471        5,829,672        (9,107,882         (997,843  
  Net increase/(decrease) in cash, cash equivalents and restricted cash                                       18,626,974       19,654,129       (17,616,825       (2,196,306  
  Cash, cash equivalents and restricted cash at the beginning of the year                                     58,623,527       77,250,501        96,904,630       13,363,760  
  Cash, cash equivalents and restricted cash at the end of the year                                           77,250,501       96,904,630        79,287,805       11,167,454  

Operating Activities

Net cash used in operating
activities consisted primarily of our net loss adjusted by non-cash adjustments, such as depreciation and amortization, and adjusted by
changes in operating assets and liabilities, such as accounts receivable and account payable.

Net cash used in operating
activities was RMB91.4 million for the year ended December 31, 2021. The difference between the net cash used in operating activities
and net loss of RMB458.7 million was primarily attributable to non-cash adjustment related to depreciation and amortization of RMB5.1
million, allowance of accounts receivable of RMB4.3 million, extinguishment losses of RMB229.6 million, changes in fair value of financial
instruments of RMB60.8 million, expenses for excess of fair value of instruments issued to an investor over proceeds received of RMB36.5