Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 197

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 197
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To
the Board of Directors and Shareholders of

DDC
Enterprise Limited

Opinion
on the Financial Statements

We have audited the accompanying
consolidated balance sheets of DDC Enterprise Limited and its subsidiaries (the “ Company”) as of December 31, 2023 and 2022,
and the related consolidated statements of operations and comprehensive loss, changes in shareholders’ equity/(deficit), and cash
flows for each of the years ended December 31, 2023, 2022 and 2021 and the related notes (collectively referred to as the “consolidated
financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated
financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the
years ended December 31, 2023, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America
(“ U. S. GAAP”).

Material
Uncertainty Related to Going Concern

The accompanying consolidated
financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2(b) to the
consolidated financial statements, the Company incurred a loss from operations of RMB146.2 million, and net cash used in operating activities
of RMB89.4 million. As of December 31, 2023, the Company had an accumulated deficit of RMB1.6 billion, that raise substantial doubt about
its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2(b). The
consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis
for Opinion

These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion
on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) (“ PCAOB”) and are required to be independent with respect to the Company’s in
accordance with the U. S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and
the PCAOB.

We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the