Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 107

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 107
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) the experience store lease expenses.
Our total lease expenses for the year ended December 31, 2022, 2023 and 2024 were RMB0.6 million, nil and nil respectively.

Others:

“ Others” primarily includes depreciation and amortization
expenses for equipment directly related to revenue. For the year ended December 31, 2022, 2023 and 2024, other costs represented less
than 1% of total costs respectively.

Operating Expenses

Our operating expenses consists
of (i) fulfilment expenses, (ii) sales and marketing expenses, (iii) general and administrative expenses and (iv) share-based
compensation.

                                                                                         For the Year Ended                                                                                      
                                                                                         December 31,                                                                                            
                                                                                         2022                                    2023                      2024                                  
                                                                                         RMB                                     RMB                       RMB                                   
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Fulfilment expenses                                                                                            10,630,884                 7,315,978                 7,969,100       1,091,762  
  Sales and marketing expenses                                                                                   20,763,218                17,440,192                20,916,582       2,865,560  
  General and administrative expenses (including research and development expenses)                              53,543,862                82,460,706                99,124,765      13,580,037  
  Impairment loss on goodwill                                                                                             —                 6,592,220                67,932,627       9,306,732  
  Share-based compensation                                                                                       38,993,201                83,863,299                19,143,702       2,622,676  

Fulfilment expenses:

“ Fulfilment expenses”
mainly consists of (i) logistics and shipping costs for delivering the goods to the customers, and (ii) packaging costs for
the products sales.

Sales and marketing expenses:

“ Sales and marketing
expenses” mainly consists of (i) salaries and benefits for sales and marketing employees, and (ii) branding and advertisement
expenses paid to the online platform providers and third-party marketing partners.

General and administrative expenses:

“ General and administrative expenses” primarily consists
of (i) salaries and benefits for general and administrative staff, (ii) consulting fees, (iii) other