Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 311

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 311
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485,823(US$5,141,560) on the dates based
on the modification fair values of these awards.

The fair values of the options granted are estimated
on the dates of grant or modification using the binomial option pricing model with the following assumptions used:

                                               For                                            
                                               the Years Ended                                
                                               December 31,                                   
                                               2022                     2023                  
 ──────────────────────────────────────────────────────────────────────────────────────────────
  Risk-free rate of return                     1.65%- 3.90%             3.56%- 5.00%          
  Volatility                                   36.92%- 39.48%           35.62 - 36.17%        
  Expected dividend yield                      -                        -                     
  Exercise multiple                            2.2 - 2.8                2.2 - 2.8             
  Fair value of underlying ordinary share      US$ 0.81 - US$ 0.94      US$ 6.32 - US$ 13.04  
  Expected terms                               10 years                 10 years              

In October 2022, the Company granted19,449share
options to one senior management member. 75% of these awards were vested by December 2022 and25% of these awards are vested upon the
occurrence of the Company’s qualified IPO. The Company recognized compensation costs of RMB1,345,156(US$190,067) in the consolidated
statements of operations and comprehensive loss based on the grant date fair value for those vested awards.

The Company has not recognized any share-based
compensation expenses for1,126,334share options granted and outstanding as at December 31, 2022, because the Company considers it is
not probable that the performance conditions will be satisfied until the event occurs. As a result, the share-based compensation expenses
for these options that are only exercisable upon the occurrence of the Company’s qualified IPO and will be recognized using the
graded-vesting method upon the consummation of the qualified IPO.

As of December 31, 2022, there were RMB84.34million
of unrecognized compensation expenses for non-vested options. Total unrecognized compensation cost may be adjusted for actual forfeitures
occurring in the future.

As of December 31, 2023, the Company recognized
compensation expensed of RMB77,619,967in connection with the IPO completed