Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 293

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 293
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   2024                               44,132,171                          -                         -  
   2025                               60,945,797                 60,945,797                         -  
   2026                               37,302,210                 37,302,210                37,302,210  
   2027                               23,478,321                 23,478,321                23,478,321  
   2028                                7,606,115                  7,606,115                 7,606,115  
   2029                                        -                  6,393,258                 6,393,258  
   2030                                        -                          -                 6,318,927  

The Company offsets deferred tax assets and liabilities
pertaining to a particular tax-paying component of the Group within a particular jurisdiction.

                                                          As of December 31,                                          
                                                          2023                                   2024                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                          RMB                                    RMB                  
  Classification in the consolidated balance sheets:                                                                  
  Deferred tax assets, net                                                        -                        -          
  Deferred tax liabilities, net                                                   3,827,489                3,798,357  

A valuation allowance is provided against deferred
income tax assets when the Company determines that it is more likely than not that the deferred income tax assets will not be utilized
in the foreseeable future. In making such determination, the Company evaluates a variety of factors including the Company’s operating
history, accumulated deficit, existence of taxable temporary differences and reversal periods.

F-92

23. INCOME TAX(cont.)

As of December 31, 2022, 2023 and 2024, the
valuation allowances of RMB52,114,383, RMB49,257,980and RMB36,838,058(US$5.1million) were related to the deferred income tax assets
of the PRC entities which were in loss position. Since these entities have incurred accumulated net operating losses for income tax purposes
since their inception, all deferred tax assets of the Company are recognized and a valuation allowance is recognized to the extent that
it is more likely than not that the deferred tax assets will not be realized as of December 31, 2022, 2023 and 2024.

Changes in valuation allowance are as follows:

                                            As of December 31,                                                                           
                                            2022