Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 133

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 133
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 of 51% equity interest
of Yuli was completed in the third quarter of 2023.

On April 30, 2023, SH DDC
entered into a purchase agreement with four entities controlled by Mr. Liao Xuefeng, (together as “the Sellers”) to acquire
100% interest in four online stores on Pinduoduo platform (“collectively referred to as PDD Stores”), for cash of approximately
RMB402,755, subject to adjustments during the subsequent performance periods. PDD Stores are principally engaged in online sales of self-heated
hotpots. This acquisition enables the Company to expand its custom traffic through a wide range of online channels and broadens the source
of income of the Company. As of 30 June 2023, the Company has completed the transaction. As of August 19, 2023, the Company terminated
the purchase agreement signed on April 30, 2023, to acquire 100% interest in PDD Stores. As a result of the termination of purchase agreement
with the PDD Stores, we expect to be able to focus our capital and efforts on selling our products through online e-commerce platforms
and offline distributors and retailers to overseas markets. We intend for the termination of business streams to reduce the company’s
overall net losses, and free up capital to be allocated into our other fast growing RTC, RTE and plant based product businesses.

On May 26, 2023, the Company
entered into a purchase agreement with Ms. Nona Lim and other selling shareholders to acquire 100% interest in Cook San Francisco, LLC.,
for cash of US$1,977,516, and shares of DDC equivalent to a value of approximately US$1,318,374. Cook San Francisco, LLC. operates the
brand “ Nona Lim”, an Asian food brand sells RTC product based in USA. This acquisition enables the Company to expand its customer
base into the US market.

On April 1, 2023, DDC Shanghai
entered into a purchase agreement with Ms. Chen Di and two other shareholders (“the Yuli Seller”) to acquire 51% equity interest
of Shanghai Yuli Development Limited (“ Yuli”). Yuli is principally engaged in sales of RTC and RTE gift product vouchers.
Acquisition of Yuli shall diversify the Company’s existing business portfolio and broaden the source of income of the Company. The
total consideration payable by the Company is a fixed cash consideration of RMB