Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 1

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 1
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654,129                 (17,616,825       (2,196,306  
  Cash, cash equivalents and restricted cash at the beginning of the year                                                                    58,623,527                 77,250,501                  96,904,630       13,363,760  
  Cash, cash equivalents and restricted cash at the end of the year                                                                          77,250,501                 96,904,630                  79,287,805       11,167,454  

Non-GAAP Financial Measure

We use adjusted EBITDA, non-GAAP
financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted EBITDA represents
net loss excluding changes in income tax expense/(benefit), interest expenses, interest income, foreign currency exchange loss/(gain),
impairment loss for long-term assets, depreciation and amortization, losses arising from modification of financial instruments, share-based
compensation and other one-off expenses related to mergers and acquisitions.

We believe that the adjusted
EBITDA helps to identify underly trends in our business that could otherwise be distorted by the effect of certain expenses that we are
included in net loss. We believe that adjusted EBITDA provides useful information about our operating results, enhance the overall understanding
of our past performance and future prospect and allow for greater visibility with respect to key metrics used by our management uses in
its financial and operational decision making.

Reconciliation from net loss
to adjusted EBITDA

                                                                                          For the Years Ended December 31                                                       
                                                                                          2021                                         2022              2023                   
                                                                                          RMB                                           RMB               RMB                   
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net loss                                                                                (458,683,434                         (122,248,608      (161,975,688      (22,813,801  
  Add:                                                                                                                                                                          
  Income tax expense                                                                      816,868                                 3,115,753         5,004,766          704,907  
  Interest expenses                                                                       22,842,091                             30,826,950        12,178,668        1,715,329  
  Interest income                                                                         (9,783                                   (465,162        (2,562,605         (360,935  
  Termination of franchise agreement                                                      —                                               —        11,