Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 310

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 310
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,614                           0.0016                             14.2192                            
  Outstanding at December 31, 2022                                        1,140,920                           4.8016                             11.1808      7.04      12,756,547  
  Granted to employees, directors, consultants and senior management        759,605                           4.2971                              5.2321                            
  Forfeited                                                                ( 74,796                           5.1412                             15.5963                            
  Outstanding at December 31, 2023                                        1,825,729                           4.5778                              8.5249      7.61      15,564,202  
  Vested and expected to vest as of December 31, 2023                     1,825,729                           4.5778                              8.5249      7.61      15,564,202  
  Exercisable as of December 31, 2023                                     1,327,331                           3.8657                              8.2430      5.04      10,941,225  

F-96

21. SHARE-BASED COMPENSATION(cont.)

The expected volatility was estimated based on
the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s options.
The risk-free interest rate was estimated based on the yield to maturity of U. S. treasury bonds denominated in US$ for a term consistent
with the expected term of the Company’s options in effect at the option valuation date. Expected dividend yield is zero as the Company
does not anticipate any dividend payments in the foreseeable future. The expected exercise multiple was estimated as the average ratio
of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. Expected term is
the contract life of the option.

In 2022, the Company modified the share options
for senior management members. Upon the modifications, service condition which originally ended on July 29, 2022 for60,269share options
was removed. In addition, another361,614share options became fully vested as the performance condition of occurrence of a qualified
IPO was removed. In June 2022 these two persons exercised their fully vested361,614share options. In connection with those share options
that the performance condition was removed, the Company recognized compensation cost of RMB33,