Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 283

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 283
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 subsequent
adjustment of the carrying amount was required.

F-83

20. SHARE-BASED COMPENSATION

Share Incentive Plan

The Company’s shareholders and Board of
Directors approved of employee option plans from 2014 to 2024 in order to provide incentives and rewards to the Company’s employees,
directors, consultants and senior management (the “ Option Plans”). As of December 31, 2024, the Company authorized5,200,000share options under the Option Plan. Share options awarded under the Option Plan are typically vested based on the service conditions
up to four years agreed with each of the participants in their grant letters, with exercise prices ranging from nominal consideration
to US$9.06. In addition, the share options can only be exercised and converted into shares upon the completion of Company’s qualified
IPO and exercise event which is a public offering or other form of listing (“ Exercise Event”), whichever is earlier, except
for the modifications made in 2023 for two senior management members and14,586share options granted to one senior management member
in 2023. Each share option has a contractual life of10years.

In connection with the acquisition of the51%
equity interest of Lishang in May 2022, the Company may be required to grant share options to Ms. Chen Di and two other her nominee shareholders
(“the Lishang Seller”) at the end of each performance period, adjusted based on the achievement of Lishang’s revenue,
gross profit and net profit for each of the four performance periods during May 1, 2022 to December 31, 2024, over the target performance.
If the IPO does not occur by January 1, 2024, the Company is obliged to pay RMB3.5million cash corresponding to30,984share options
out of the total base number of43,936share options to be issued for the third performance period. If the IPO does not occur by January
1, 2025, the Company is obligated to deliver a fixed amount of RMB12.4million cash in addition to the previous payment of RMB3.5million,
with all previously issued share options, if any, cancelled. In August 2023, the Company issued16,972share options to the Lishang Seller,
based on the actual performances of Lishang for the first two performance periods up to December 31, 2022. As the Lishang Seller