Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 315

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 315
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 2022 and 2023, respectively.

F-100

23. OTHER EXPENSES, NET

Other expenses, net for the year ended December
31, 2023 consisted of the following (for the years ended December 31, 2021 and 2022 and 2023: RMB
266.1
million and
nil
):

                                                                For the years ended                                                       
                                                                December 31                                                               
                                                                2021                                      2022      2023                  
                                                                RMB                                       RMB       RMB                   
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Extinguishment losses                                                                  230,308,163                          10,440,057  
  Extinguishment gain                                                                      ( 727,995                          -           
  Excess of fair value of instruments issued over proceeds                                36,503,817                          -           
  Total                                                                                  266,083,985                          10,440,057  

24. INCOME TAX

a) Income tax

Cayman Islands

Under the current laws of the Cayman Islands,
the Company is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments
of dividends to shareholders.

Hong Kong S. A. R.

Under the current Hong Kong S. A. R. Inland
Revenue Ordinance, the Company’s Hong Kong S. A. R. subsidiary is subject to Hong Kong S. A. R. profits tax at the rate of16.5% on its taxable income generated from the operations in Hong Kong S. A. R. The first HK$2.0million of assessable profits
earned by a company will be taxed at8.25% whilst the remaining profits will continue to be taxed at16.5%. There is an anti-fragmentation
measure where each Company will have to nominate only one company in the Company to benefit from the progressive rates. Payments of dividends
by the Hong Kong S. A. R. subsidiary to the Company is not subject to withholding tax in Hong Kong S. A. R.

The PRC

The Company’s PRC subsidiaries and the VIEs
are subject to the PRC Enterprise Income Tax Law (“ EIT Law”), which was effective since January 1, 2008. In accordance
with EIT Law, the statutory income tax rate of25%, unless a preferential EIT rate is otherwise stip