Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 124

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 124
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 RMB                   
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash used in operating activities                                                                      (37,083,065       (89,350,546      (112,907,188      (15,468,224  
  Net cash used in investing activities                                                                         (444,627      (135,161,792       (10,857,028       (1,487,406  
  Net cash provided by financing activities                                                                   51,352,149       216,003,395       104,270,474       14,284,997  
  Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash               5,829,672        (9,107,882         1,163,093         (145,725  
  Net increase/(decrease) in cash, cash equivalents and restricted cash                                       19,654,129       (17,616,825       (18,330,649       (2,816,358  
  Cash, cash equivalents and restricted cash at the beginning of the year                                     77,250,501        96,904,630        79,287,805       11,167,454  
  Cash, cash equivalents and restricted cash at the end of the year                                           96,904,630        79,287,805        60,957,156        8,351,096  

Operating Activities

Net cash used in operating
activities consisted primarily of our net loss adjusted by non-cash adjustments, such as depreciation and amortization, and adjusted by
changes in operating assets and liabilities, such as accounts receivable and account payable.

Net cash used in operating
activities was RMB37.1 million for the year ended December 31, 2022. The difference between the net cash used in operating activities
and net loss of RMB122.2 million was primarily attributable to non-cash adjustment related to depreciation and amortization of RMB3.5
million, allowance of accounts receivable of RMB5.3 million, impairment loss for equity investments accounted for using Measurement Alternative
of RMB22.7 million, changes in fair value of financial instruments of RMB1.9 million, share-based compensation of RMB39.0 million, accretion
of interest expenses on loans at amortized cost of RMB18.8 million, allowance for other current assets