Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 282

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 282
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 price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies a performance obligation. Revenue is primarily derived from (i) online products sales to individual customers or small retailers through third -partyE -commerceplatforms (ii) offline products sales to various distributors, e.g. offline retail chains or supermarkets who then sell to end customers, (iii) advertising services to customers with well -knownbrand names in lifestyle -relatedindustries, (iv) cooking classes in the branded experience stores operated by the Company and (v) providing management services in collaborative arrangements. The Company evaluates whether it is appropriate to record the gross amount of products sales and, advertising services and related costs or the net amount earned as commissions. When the Company is a principal, that the Company obtains control of the specified goods or services before they are transferred to the customers, revenue should be recognized in the gross amount of consideration to which it expects to be entitled in exchange for the specified goods or services transferred. When the Company is an agent and its obligation is to facilitate third parties in fulfilling their performance obligation of specified goods or services, revenue should be recognized in the net amount for the amount of commission which the Company earns in exchange for arranging for the specified goods or services to be provided by the third parties. Product sales The Company develops and sells the following types of products: (a)Own -brandedready to cook (“RTC”) products that can be consumed within 15 -20minutes with additional cooking preparation required; (b)Own -brandedready to heat (“RTH”) products, typically pre -or - semi-cookedmeals, which require some preparation ahead of serving; F-30 DDC ENTERPRISE LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (c)Ready to eat & plant base products (“RTE & Plant Base”) — typically pre -cookedmeals that are ready to serve with minimal level of additional preparation, which includes the plant -basedmeal products; (d)Private label products with other third -partybrand; and (e)Fresh products including fresh and organic vegetables and fruit. The Company no longer had this category following the deconsolidation of Farm Entities since April 1, 2022. Each type of the products is distributed and promoted through omni channels (online and offline). 1) Online consumer product sales