Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 286

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 286
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 one year or less. These costs are recorded within sales and marketing expenses. (v) Cost of Revenues Cost of revenues primarily consists of the purchase price of merchandise, lease costs, costs of publishing advertisement, personnel costs for cooking classes, and cost of fresh products. (w) Fulfilment Expenses Fulfilment expenses relate to product delivery and packaging. (x) Sales and Marketing Expenses Sales and marketing expenses mainly include app download promotion, social media platform and short video platform content marketing expenses, E -commerceplatform promotion and channel promotion, including the commission of key opinion leader (“KOL”), payroll and related expenses for personnel engaged in sales and marketing activities, depreciation expenses relating to facilities and equipment used by those employees, lease costs of stores and facilities. The amount of advertising expenses incurred were RMB2.9 million, RMB1.7 million and RMB1.2 million for the years ended December 31, 2022, 2023 and 2024, respectively. (y) Research and development expenses Research and development expenses are primarily of expenses for consulting work performed by third party involved in the development of new products innovation. Research and development expenses are expensed as incurred. (z) General and Administrative Expenses General and administrative expenses mainly consist of payroll and related costs for employees involved in general corporate functions, expenses associated with the use of facilities and equipment by these employees, such as operating lease and depreciation expenses, professional fees, information service fees, technical service fees, amortization expenses related to intangible assets acquired in business combinations, bank charges and other general corporate expenses. (aa) Government grants Government grants are received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. During the years ended December 31, 2022, 2023 and 2024, the Company received financial subsidies of RMB0.2 million, RMB0.1 million and RMB0.4 million, respectively, from various local PRC government authorities. There are no defined rules and regulations to govern the criteria necessary for companies to receive such benefits, and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Such amounts are recorded in other income when received as the amount of the subsidies and the timing of payment are determined solely at the discretion of the relevant government authorities and there is no assurance that the Company will continue to receive any or similar subsidies in the future. F-33 DDC ENTERPRISE LIMITED
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