Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 156

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 8
Chunk 156
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Item 8. Financial Information

8. A. Consolidated Statements and Other Financial Information

We have appended consolidated financial
statements filed as part of this annual report.

Legal Proceedings and Compliance

Several logos we have used
for years cannot be registered as trademarks in certain trademark categories in China because a company unaffiliated to us has pre-emptively registered
similar logos as trademarks in such categories. As a result, we have been and will not be able to use such logos in areas covered by such
trademark categories. Such company complained to the Market Supervision Bureau for the trademark infringement of SH DDC, and SH DDC has
already applied for the invalidations of these trademarks at the State Intellectual Property Office, the SIPO, as well as indicted a serious
of related administrative actions which have been already accepted by the court. As the trademarks under the legal proceeding are not
relevant to our main business and we have adopted timely steps to make enough adjustments to relevant business, including stopped using
them in any public place, the unavailability of these trademarks would not materially and adversely affect our business.

We are not currently party
to, and we are not aware of any pending or threatened legal, arbitral or administrative proceedings or claims, which, in the opinion of
our management, is likely to have a material and/or adverse effect on its business, financial condition or results of operations, except
as described below. We may from time to time become a party to various legal, arbitral or administrative proceedings or claims arising
in the normal course of business.

In September 2023, the Company
received a written demand from a shareholder that the Company redeem the following shares held by such shareholder for a payment to the
shareholder of US$3,679,323: 56,688 series B-1 preferred shares and 6,611 series C-1 preferred shares. The Company’s Amended
and Restated Memorandum and Articles of Association and its Amended and Restated Shareholders’ Agreement require consent of the
shareholders prior to any redemption. The shareholders have not consented to a redemption of shares. The Company therefore believes that
shares cannot be redeemed. No assurances can be given that the Company will prevail in this matter and payment of the redemption
would have a significantly negative impact on the Company’s financial position.

On January 9, 2024, we entered
into a share purchase agreement (the “ SPA”) to acquire 51% of the outstanding shares of GLI