Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 294

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 294
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2025, or an earlier date if agreed by both parties. Other terms remained the
same. It was determined that there was no substantial change of terms for this modification.

The Company elected to record the 2020 Convertible
Loan at fair value.

In November 2023, in connection with the completion
of the IPO, which is not the qualified IPO according to the original term of the 2020 Convertible Loan, remaining holders of the 2020
Convertible Loan with the principal amount plus accrued interest of US$0.8million, agreed with the Company to convert into215,669class
A ordinary shares at the conversion price of US$3.69per share. The Company applied the debt extinguishment guidance, recognized the fair
value of Class A ordinary shares and derecognized the carrying value of the 2020 Convertible Loan of US$0.8million prior to the conversion,
resulting in an extinguishment loss of RMB3.0million (note 23).

November 2020 Shareholder Loan

In November 2020, the Company borrowed US$ denominated loans of US$0.7million from one of the shareholders. The loans bear interest of8% per annum. Upon the closing of the Series C-1 round of the Company,
the lenders may at any time elect to request the Company for repayment of the loan and accrued interest. No payment was made before December
31, 2023, it was recorded as current liability at amortized cost and the balance as of December 31, 2022 and 2023 was RMB4,875,220and
RMB4,957,890, respectively.

February 2021 Shareholders Loan

In connection with the C-1 financing completed
in February 2021 (note 17), the Company issued certain shareholders’ loans to related investors. These loans bear a fixed interest
rate of8.0% per annum and are repayable within one year. In May 2022, the related investors except one investor, signed loan extension
agreements with the Company that the repayment date shall be extended to January 1, 2024.

In June 2023, the related investors except three
investors signed loan extension agreements with the Company that the repayment date shall be extended to January 1, 2025, The Company
recorded February 2021 Shareholders Loan at amortized cost with the balances of RMB584,922and RMB6,