Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 264

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 264
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  Payable for acquisition of Mengwei                           551,641                -  
  Loans from employees *                                     6,692,925       20,936,432  
  Loans from individuals *                                   1,826,684       19,752,448  
  Loans from 3rd parties                                             -        2,531,534  
  Deposits from suppliers                                      659,470          773,826  
  Tax payables                                              46,637,693       62,003,708  
  Interest payables                                         11,802,181       11,393,183  
  Professional service fees                                 20,049,510       27,720,955  
  Accrued utilities and other expenses                       9,441,051       12,970,800  
  Total                                                    107,356,680      168,952,161  

  Loans                                                                                                             

  In connection with acquisition of Lin’s in 2022, the purchase                                                                                                                                         
  consideration includes 11,938 Series C-1 redeemable convertible preferred shares to be issued by the Company. As of December 31, 2022,                                                                
  the Company has not issued any preferred shares to the founder of Lin’s and the fair value of preferred shares to be issued was                                                                       
  recorded as a liability. In April 2023, the Company and the founder agreed a modification that the 11,938 Series C-1 redeemable convertible                                                           
  preferred shares to be replaced by 11,938 number of share options granted to the founder of Lin’s with an exercise price of US$ 0.0016 per share. These share options shall be exercisable upon a...  
  of grantee’s engagement status with the Company in 10 years.                                                                                                                                          
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F-64

14. ACCRUED
EXPENSES AND OTHER CURRENT LIABILITIES(cont.)

The original liability for the Company to issue
the preference shares was extinguished upon the modification date and the fair value of the share option was recognised as an equity instrument.
The difference between the carrying amount of the liability extinguished and the fair value of the new instrument issued amounted to RMB289,457was recorded in “other income” in the consolidated statements of operations and comprehensive loss.

The fair values of share options granted
are estimated on