Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 128

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 128
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).

Net cash provided in financing activities was RMB104.3 million (US$14.3
million) for the year ended December 31, 2024, primarily due to proceeds from individual investors of RMB15.0 million (US$2.1), the net
proceeds from short-term bank borrowings of RMB31.0 million (US$4.2 million), net repayment of long-term bank borrowings of RMB2.4 million
(US$0.3 million), net proceeds from related parties’ loans of RMB17.5 million (US$2.4 million), issuance of convertible loans (net
of repayment) of RMB18.7 million (US$2.6 million), net proceeds from loans from employees and individuals of RMB24.4 million (US$3.3 million).

Capital Expenditures

For the years ended December 31, 2022, 2023 and 2024,
cash used in the purchase of property and equipment amounted to RMB0.2 million, RMB0.2 million and RMB0.4 million (US$0.05 million),
respectively.

Off-Balance Sheet Commitments and Arrangements

We have not entered into any
financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative
contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our combined and consolidated
financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity
that serves as credit, liquidity or market risk support to such entity.

Contractual Obligations

The following table sets forth
our contractual obligations as of December 31, 2023:

                                  Payment Due by Period                                                                               
  Contractual Obligations         Total                                                                                               
                                  (in RMB)                                                                                            
  Operating lease payments                                    6,040,800       2,223,594      1,958,338      968,228        890,640    
  Finance lease payments                                         30,068          30,068      -              -              -          
  Short-term bank borrowings                                 50,500,000      50,500,000      -              -              -          
  Long-term bank borrowings                                   5,256,098         792,548      1,249,468      1,100