Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 236

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 236
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 considers specific credit loss provisions on a case-by-case basis for particular aged receivable balances

F-44

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(ah) Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating decisionmaker (“ CODM”). The CODM, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer (“ CEO”).
The Company’s CODM assesses performance and allocates resources based on two operating segments: merchandise sales and fresh agriculture
produce.

  Merchandise: Merchandise segment includes sales of RTC, RTH, RTE and Plant Base, Private label products, Advertising service and Experience stores to third parties and individual customers.  

  Fresh products: Fresh products segment includes fresh products sold to supermarkets and other third parties. This reporting segment was discontinued since April 1, 2022 due to the deconsolidati...  
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Since the deconsolidation of Farm Entities from
April 1, 2022, there is only one operating segment remaining.

The Company does not include intercompany transactions between segments
for management reporting purposes. In general, revenues, cost of revenues and operating expenses are directly attributable, or are allocated,
to each segment. The Company allocates costs and expenses that are not directly attributable to a specific segment, to different segments
mainly based on usage, depending on the nature of the relevant costs and expenses. The Company currently does not allocate the assets
to its segments, as its CODM does not use such information to allocate resources or evaluate the performance of the operating segments.
The Company currently does not allocate other long-lived assets to the geographic operations as most of the Company’s long-lived
assets are located in the PRC. In addition, most of the Company’s revenue is derived from within the PRC. Therefore, no geographical
information is presented.

The Company’s segment operating performance measure is segment
adjusted net loss, which represents net income or loss before (a) depreciation of property, plant and equipment and amortization of intangible
assets, and (b) interest income, interest expenses, other income, other expenses, net, and income tax expense. The following table presents
information about adjusted net loss and a reconciliation from the segment adjusted loss to total consolidated loss from operations