Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 343

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 343
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 corresponding inputs in 2023:

|                                                               | As of           
 December 31,    
 2023            
 March 2019      
 B-2             
 Warrant         |
|:--------------------------------------------------------------|:----------------|
| Risk-free interest rate                                       | 3.92% – 4.12%   |
| Expected volatility                                           | 35.55% – 41.61% |
| Dividend yield                                                | 0.00%           |
| Remaining contractual life                                    | Permanent       |
| Fair value of the underlying preferred shares/ordinary shares | US$4.67         |

____________ (1)The risk -freeinterest rate within warrant liabilities was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for a term consistent with the expected term in effect at the valuation date. (2)The expected volatility was estimated based on the historical average volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s warrant liabilities. (3)The determination of the fair value of the Company’s preferred shares and ordinary shares requires complex and subjective judgments to be made regarding the cash flow forecasts and the weighted average cost of capital and the discount for lack of marketability applied to the projected cash flows. If different estimates and assumptions had been used, the fair values of the preferred shares and ordinary shares could be significantly different, and the fair value of the warrant liabilities and option liability may materially differ from the recognized amount. The fair value of the convertible loans measured at fair value was RMB14.3 million and RMB10.1 million (US$1.4 million) as of December 31, 2023 and 2024, respectively. The Company estimated the fair value of the convertible loans based on a probability -weightedanalysis which included the discounted cash flows from the convertible loans and the value of the conversion option as determined by the binomial option pricing model. The inputs used in the analysis were classified as Level 3 inputs within the fair value hierarchy due to the lack of observable market data and activity. If different estimates and assumptions had been used, the fair values of the preferred shares and ordinary shares could be significantly different, and the fair value of the convertible loans may materially differ from the recognized amount. Interest expense on the Company’s fixed- rate debt is displayed separately from other changes in its fair value. The amount presented as interest expense is determined each period by applying the interest method using the effective interest rate on the debt at its issuance. The Company did