Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 245

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 245
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8. LONG-TERM INVESTMENTS

Long-term investments consisted of the following:

                                               As of December 31,                                            
                                               2022                                    2023                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                               RMB                                     RMB                   
  Measurement alternative method                                                                             
  PFI Food Industries Limited                                          21,744,509                14,136,050  
  Good Food Technologies (Cayman) Limited                                 696,460                -           
  Long-term investments                                                22,440,969                14,136,050  

F-52

8. LONG-TERM INVESTMENTS(cont.)

On August 13, 2021, the Company entered into a
subscription agreement with Black River Food 2 Pte. Ltd. (“ Black River”) relating to Series C-1 redeemable convertible preferred
shares and warrants of the Company. The Company agreed to allot and issue to Black River364,592Series C-1 redeemable convertible preferred
shares and388,695warrants (“the PFI Warrant”), with each warrant entitling Black River to acquire one Series C-1 redeemable
convertible preferred shares at nominal consideration when exercised, exercisable within 3 months. The consideration shall be satisfied
by Black River transferring its5,072,000ordinary shares of PFI Food Industries Limited (“ PFI Foods”, a subsidiary of Black
River), representing approximately6.316% of the entire issued share capital of PFI Foods. PFI Foods focuses on providing RTE and RTC
plant-based meat products. The Company issued to Black River364,592Series C-1 redeemable convertible preferred shares and388,695PFI
Warrant on August 30, 2021 and Black River exercised the PFI Warrant into388,695number Series C-1 redeemable convertible preferred shares
on the same date. The equity interests in PFI Foods were transferred to the Company on December 22, 2021.

Prior to December 22, 2021, the Company determined
the equity interests in PFI Foods to be transferred as a non- derivative prepaid forward contract. The forward contract, the Series C-1
redeemable convertible preferred shares issued and PFI warrant was initially recorded at their fair value of RMB94,141,160, RMB45,564,461and RMB48,576,699, respectively. The forward contract was recorded as an