Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 292

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 292
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  Advertising expenses                                                             408,763                -                           -             
  Operating lease liabilities                                                    1,435,780                603,937                     513,936       
  Accrued expenses and other current liabilities                                 1,197,369                -                           -             
  Less: Valuation allowance                                                   ( 52,114,383                ( 49,257,980                ( 36,838,058  
  Total deferred tax assets, net                                                 4,857,215                -                           -             
  Deferred tax liabilities:                                                                                                                         
  Acquired intangible assets                                                   ( 4,321,616                ( 3,827,489                 ( 3,798,357   
  Unrealized Income                                                            ( 2,528,002                -                           -             
  Operating lease Right-of-use assets                                          ( 1,407,024                -                           -             
  Total deferred tax liabilities, net                                          ( 8,256,642                ( 3,827,489                 ( 3,798,357   
  Deferred tax liabilities, net                                                ( 3,399,427                ( 3,827,489                 ( 3,798,357   

As of December 31, 2022, 2023 and 2024, the Company
had net operating loss carry forwards of approximately RMB63.8million, RMB89.2million and RMB97.3million (US$13.3million), respectively,
attributable to the Hong Kong subsidiaries. The cumulative tax losses for entities in Hong Kong will not expire under the current tax
legislation.

F-91

23. INCOME TAX(cont.)

As of December 31, 2022, 2023 and 2024, the
Company had net operating loss carry forwards of approximately RMB173.5million, RMB135.7million and RMB81.1million (US$11.1million),
respectively, attributable to the PRC subsidiaries and the VIEs. The loss carried forward of the PRC companies will expire during the
following periods from 2024 to 2030.

             As of December 31,                                                                        
             2022                                     2023                       2024                  
             RMB                                      RMB                        RMB                   
  Total                              173,464,614                135,725,701                81,098,831  
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