Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 309

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 309
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 obligated to deliver a fixed amount of RMB12.4million cash in
addition to the previous payment of RMB3.5million, with all previously issued share options, if any, cancelled. In August 2023, the
Company issued16,972share options to the Lishang Seller, based on the actual performances of Lishang for the first two performance
periods up to December 31, 2022. As the Lishang Seller is required to continuously provide services to Lishang for no less than
three years after the acquisition, and as the Company is obligated to deliver cash unless an IPO takes place, these share-based
arrangements are accounted for as liability-classified award and were amortized over the service period of the Lishang Seller based
on the cash amount to be paid the IPO does not occur. The compensation cost recognized in connection with this liability-classified
award for the years ended December 31, 2022 and 2023 amounted to RMB4,162,222and RMB10,405,554respectively and was recognised as non- current liabilities.

As the IPO occurred in November 2023, the Company
is not required to pay RMB3.5million or RMB12.4million any more. All share options will be settled in shares based on the actual performance
during the performance periods. As of December 31, 2023, the Company has issued271,549share options to the Lishang Seller.

A summary of the share-based compensation activities
for the years ended December 31, 2022 and 2023 is presented below:

                                                                                         Weighted                         Weighted                                                  
                                                                                         average                          average grant-                                            
                                                                                         exercise price                   date/modification                                         
                                                                                                                          date fair value                                           
                                                                                         US$                              US$                                                       
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Outstanding at January 1, 2022                                          1,127,395                           4.8880                             11.4672      7.84      12,927,781  
  Granted to employees, directors, consultants and senior management        378,852                           0.1200                             13.2160                            
  Forfeited                                                                 ( 3,713                          20.6352                              9.9040                            
  Exercised                                                               ( 361