Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 129

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 129
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million, an increase in inventories of RMB5.8 million, an increase in prepayments and other current assets of RMB4.4 million, and increase
in accrued expenses and other current liabilities of RMB25.7 million.

Net cash used in operating
activities was RMB37.1 million for the year ended December 31, 2022. The difference between the net cash used in operating activities
and net loss of RMB122.2 million was primarily attributable to non-cash adjustment related to depreciation and amortization of RMB3.5
million, allowance of accounts receivable of RMB5.3 million, impairment loss for equity investments accounted for using Measurement Alternative
of RMB22.7 million, changes in fair value of financial instruments of RMB1.9 million, share-based compensation of RMB39.0 million, accretion
of interest expenses on loans at amortized cost of RMB18.8 million, allowance for other current assets of RMB4.3 million, changes in assets
and liabilities, net of effects from business combination and deconsolidation of VIEs of RMB4.3 million, a decrease in gain from deconsolidation
of VIEs of RMB13.5 million, a decrease in unrealized foreign currency exchange loss/(gain), net of RMB0.7 million, and a decrease in deferred
tax benefit of RMB0.6 million.

Net cash used in operating activities was RMB89.4 million (US$12.6 million) for the year ended December 31, 2023. The difference between
the net cash used in operating activities and net loss of RMB162.0 million (US$22.8 million) was primarily attributable to non-cash adjustment
related to depreciation and amortization of RMB6.1 million (US$0.9 million), decrease in fair value of financial liabilities of RMB17.1
million (US$2.4 million), share-based compensation of RMB83.9 million (US$11.8 million), extinguishment loss of RMB10.4 million (US$1.5
million), termination of franchise agreement of RMB11.0 million (US$1.6 million), impairment loss for equity investments accounted for
using Measurement Alternative of RMB8.3 million (US$1.2 million), impairment loss on goodwill of RMB6.6 million (US$