Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 193

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 193
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 the Financial Statements

We have audited the accompanying
consolidated balance sheets of DDC Enterprise Limited and its subsidiaries (the “ Company”) as of December 31, 2024 and 2023,
and the related consolidated statements of operations and comprehensive loss, changes in shareholders’ equity, and cash
flows for each of the years ended December 31, 2024, 2023 and 2022 and the related notes (collectively referred to as the “consolidated
financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the
years ended December 31, 2024, 2023 and 2022, in conformity with accounting principles generally accepted in the United States of America
(“ U. S. GAAP”).

Material Uncertainty Related to Going Concern

The accompanying consolidated
financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2(b) to the consolidated
financial statements, the Company incurred a net loss of RMB157 million, and net cash used in operating activities of RMB112.9 million.
As of December 31, 2024, the Company had an accumulated deficit of RMB1.81 billion, that raise substantial doubt about its ability to
continue as a going concern. Management’s plans in regard to these matters are also described in Note 2(b). The consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These consolidated financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s
consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (“ PCAOB”) and are required to be independent with respect to the Company’s in accordance with
the U. S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in
accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance
about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not
required to have, nor