Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 268

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 268
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 the revised cash flow under the term of the modified debt instrument.

For the fourth modification, it was determined
that there was substantial change of terms and extinguishment accounting was applied. The excess of the reacquisition price of debt, being
the fair value of the new debt instruments and the incremental fair value of RMB5.9million (US$0.9million) of the issuance
of Class A OS Warrant, over the net carrying amount of the extinguished debt and the derecognition of the B-2 & C Warrant was recognized
as losses upon the extinguishment in 2021.

In April 2022, the Company agreed with the
lender to extend the remaining unpaid principal of HK$15.7million to be expired on the earlier of (i) the consummation of a qualified
IPO; (ii) the date falling fourteen (14) business days after receiving a repayment notice. At any time after the Company has received
a new round of financing of not less than US$20.0million, the lender may elect to request the Company for repayment of the indebtedness;
and (iii) October 25, 2022. The interest of the outstanding amount of the loan remains at8% per annum (“the fifth modification”).

F-73

17. CONVERTIBLE LOANS AND SHAREHOLDER LOANS(cont.)

In October 2022, the Company agreed with
the lender to extend the remaining unpaid principal of HK$15.7million to be expired on the earlier of (i) the consummation of a qualified
IPO; (ii) the date falling fourteen (14) business days after receiving a repayment notice. At any time after the Company has received
a new round of financing of not less than US$20.0million, the lender may elect to request the Company for repayment of the indebtedness;
and (iii) October 25, 2023. The interest of the outstanding amount of the loan remains at8% per annum (“the sixth modification”).

It was determined that there was no substantial
change of terms in the fifth and sixth modifications and the new debt was accounted for at amortized cost using a new effective interest
rate determined based on the original debt’s net carrying amount and the revised cash flow under the term of the modified debt instrument.
The balance as of December 31, 2023 and 2024 was RMB14,227,340and RMB14,538,200,