Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 125

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 125
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 of RMB4.3 million, changes in assets
and liabilities, net of effects from business combination and deconsolidation of VIEs of RMB4.3 million, a decrease in gain from deconsolidation
of VIEs of RMB13.5 million, a decrease in unrealized foreign currency exchange loss/(gain), net of RMB0.7 million, and a decrease in deferred
tax benefit of RMB0.6 million.

Net cash used in operating activities was RMB89.4 million (US$12.6 million) for the year ended December 31, 2023.
The difference between the net cash used in operating activities and net loss of RMB162.0 million (US$22.8 million) was primarily attributable
to non-cash adjustment related to depreciation and amortization of RMB6.1 million (US$0.9 million), decrease in fair value of financial
liabilities of RMB17.1 million (US$2.4 million), share-based compensation of RMB83.9 million (US$11.8 million), extinguishment loss of
RMB10.4 million (US$1.5 million), termination of franchise agreement of RMB11.0 million (US$1.6 million), impairment loss for equity investments
accounted for using Measurement Alternative of RMB8.3 million (US$1.2 million), impairment loss on goodwill of RMB6.6 million (US$0.9
million), a decrease in deferred tax benefit of RMB1.3 million (US$0.2 million), an increase in accounts receivable of RMB4.5 million
(US$0.6 million), an increase in prepayments and other current assets of RMB53.9 million (US$7.6 million), an increase in other non-current
assets of RMB5.5 million (US$0.8 million), an increase in contract liabilities of RMB4.8 million (US$0.7 million) and an increase in accrued
expenses and other current liabilities of RMB22.4 million (US$3.2 million).

Net cash used in operating activities was RMB112.9 million (US$15.5
million) for the year ended December 31, 2024. The difference between the net cash used in operating activities and net loss of RMB157.0
million (US$21.5