Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 264

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 264
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 completed when the Company obtained control
over Yai’s Tai on February 1, 2024.

The subscription consideration includes cash consideration
of US$1,674,461(equivalent to RMB12.04million), and payable consideration of US$6,697,842(equivalent to RMB48.15million) settled in
certain ordinary shares.

As of December 31, 2024, the Company has paid
all the cash consideration and issued certain ordinary shares.

The Company made estimates and judgments in determining
the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar
assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is as follows:

  Considerations:                                                                   
  Consideration - Cash payable                                          12,036,695  
  Consideration - Payable settled in certain ordinary shares            48,146,767  
  Total considerations                                                  60,183,462  
  Less: Identifiable net assets acquired as of January 31, 2024                     
  Cash and cash equivalents acquired in the business combination         1,484,570  
  Accounts receivable                                                    2,245,419  
  Inventories                                                            3,764,364  
  Other current assets                                                     474,117  
  Property, plant and equipment                                             24,584  
  Intangible asset – Trade mark                                            884,173  
  Intangible asset – Customer relationship                              23,613,894  
  Non-operating assets                                                     247,324  
  Accounts payable                                                    ( 12,872,591  
  Other current liabilities                                            ( 8,701,997  
  Deferred tax liabilities                                             ( 5,144,594  
  Total identifiable assets acquired and liabilities assumed             6,019,263  
  Goodwill                                                              54,164,199  

The following unaudited pro forma financial information
presents the total revenue and net loss of the Company in the aggregate assuming all the above acquisitions occurred as of January 1,
2022, 2023 and 2024, respectively.

                2022                         2023                         2024                     
                RMB                          RMB                          RMB                      
 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue                   231,912,739                  222,220,917                  276,481,235  
  Net loss                ( 121,922,472