Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 273

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 273
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the corporate transaction conversion date or listing of the qualified IPO. The conversion price is US$11.68per share, or a price per
share that equals to the product of X multiplied by90% (where “ X” equals US$210million divided by the Company’s total
number of shares immediately before Qualified IPO calculated on fully diluted basis), or a price per share that equals to90% of the price
per share of any Initial Public Offering that is not a Qualified IPO, or a price per share that equals to the implied price per share
of any corporate transaction (other than an Initial Public Offering that is not a Qualified IPO), whichever is lower.

The Company elected to record the August 2022
Convertible Loan at fair value. As of December 31, 2023, the August 2022 Convertible Loan was classified as current, as the Company’s
total revenue for the year ended December 31, 2023 was less than RMB900million.

In May 2024, the holder agreed with the Company
to convert the loan with the principal plus interest of RMB4.1million into111,704class A ordinary shares at the conversion price of
US$5.1per share.

F-76

17. CONVERTIBLE LOANS AND SHAREHOLDER LOANS(cont.)

December 2022 Convertible Loan

In December 2022, the Company entered into a convertible
loan agreement with a new lender for a total principal amount of RMB7.0million (US$1.0million) (“the December 2022 Convertible
Loan”). Interest rate is8% per annum of the December 2022 Convertible Loan and its maturity date is the first anniversary of the
issuance date. The Company may not prepay the Loan prior to the maturity date. The December 2022 Convertible Loan shall be repayable by
the lender within 3 business days of the date of written demand from the lender, if (1) the Company terminates the IPO process in the
US market (including but not limited to the Nasdaq Global Market System (“ Nasdaq”) or the New York Stock Exchange (“ NYSE”))
or (2) the Company engages any sponsors or underwriters for an IPO on Stock Exchange of Hong Kong Limited (“ SEHK”) on or prior
to the maturity date. In case the Qualified IPO has not completed before March 31, 2023, the lender shall have the right but not the obligation
to extend the