Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 239

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 239
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MB                                     RMB                  
  Measurement alternative method                                                                   
  PFI Food Industries Limited                                 14,136,050                8,490,163  
  Long-term investments                                       14,136,050                8,490,163  

F-50

8. LONG-TERM INVESTMENTS(cont.)

On August 13, 2021, the Company entered into a
subscription agreement with Black River Food 2 Pte. Ltd. (“ Black River”) relating to Series C-1 redeemable convertible preferred
shares and warrants of the Company. The Company agreed to allot and issue to Black River364,592Series C-1 redeemable convertible preferred
shares and388,695warrants (“the PFI Warrant”), with each warrant entitling Black River to acquire one Series C-1 redeemable
convertible preferred shares at nominal consideration when exercised, exercisable within 3 months. The consideration shall be satisfied
by Black River transferring its5,072,000ordinary shares of PFI Food Industries Limited (“ PFI Foods”, a subsidiary of Black
River), representing approximately6.316% of the entire issued share capital of PFI Foods. PFI Foods focuses on providing RTE and RTC
plant-based meat products. The Company issued to Black River364,592Series C-1 redeemable convertible preferred shares and388,695PFI
Warrant on August 30, 2021 and Black River exercised the PFI Warrant into388,695number Series C-1 redeemable convertible preferred shares
on the same date. The equity interests in PFI Foods were transferred to the Company on December 22, 2021.

Prior to December 22, 2021, the Company determined
the equity interests in PFI Foods to be transferred as a non- derivative prepaid forward contract. The forward contract, the Series C-1
redeemable convertible preferred shares issued and PFI warrant was initially recorded at their fair value of RMB94,141,160, RMB45,564,461and RMB48,576,699, respectively. The forward contract was recorded as an investment on equity securities. The Company estimated the fair
values of Series C-1 redeemable convertible preferred shares for Black River and PFI warrant using the binomial model with the assistance
of an independent third-party valuation.

On December 22, 2021, the fair value of the forward
contract was RMB49,289,160, with a fair value loss of R