Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 234

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 234
---
                               20.2                         *                            *     
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────
  Supplier B                               35.3                         15.8                         *     
  Supplier C                               14.2                         *                            *     
  Supplier D                               *                            14.9                         27.2  
  Supplier E                               *                            13.6                         19.9  
  Supplier F                               *                            *                            10.5  

  Less than 10.0% of the Company’s purchase amounts in the respective years.  

Although there is a limited number of providers
of products, management believes that other providers could provide similar products on comparable terms. A change in suppliers, however,
could cause negative impact on the business operation and a possible loss of sales, which would affect operating results adversely.

Interest rate risk

The Company’s borrowings bear interests
at fixed and floated rates. If the Company were to renew these borrowings, the Company might be subject to interest rate risk.

F-43

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Foreign currency exchange rate risk

In July 2005, the PRC government changed
its decades-old policy of pegging the value of the RMB to the US$. Since June 2010, the RMB has fluctuated against the US$, at times
significantly and unpredictably. It is difficult to predict how market forces or the government policy may impact the exchange rate between
the RMB and the US$ in the future.

(af) Loss per Share

Basic loss per share is computed by dividing net
loss attributable to Class A ordinary shareholders, considering the accretions to redemption value of the preferred shares, by the
weighted average number of ordinary shares outstanding during the year using the two-class method. Under the two-class method, net loss
is not allocated to other participating securities when the participating securities do not have contractual obligations to share losses.

Class B ordinary shares of the Company were
issued to the Founder, Ms. Norma Ka Yin Chu, which are not entitled to dividends and distributions of the Company, whereas any undistributed
net loss is not allocated to Class B ordinary shares. Therefore, Class B ordinary shares are not participating securities.

The Company’s preferred shares are not participating
securities as they do not participate in unallocated loss on an as-converted basis. The preferred shares do not have a contractual obligation
to fund or otherwise absorb the Company