Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 266

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 266
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F-65

15. LEASES(cont.)

The following table presents operating lease cost
reported in the consolidated statement of operations and comprehensive loss related to the Company’s leases for the years ended
December 31, 2022 and 2023:

                                      As of December 31,                                          
                                      2022                                   2023                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────
                                      RMB                                    RMB                  
  Operating lease expenses:                                                                       
  Operating lease expenses                                    3,585,998                2,706,804  
  Short-term lease expenses                                   527,470                    113,200  
  Total operating lease expenses                              4,113,468                2,820,004  
  Finance lease expenses:                                                                         
  Amortization expenses                                       -                           51,376  
  Interest expenses                                           -                            7,158  
  Total finance lease expenses                                -                           58,534  
  Total lease expenses                                        4,113,468                2,878,538  

Lease terms and discount rates are as follows:

                                                     As of December 31,                              
                                                     2022                             2023           
 ─────────────────────────────────────────────────────────────────────────────────────────────────────
                                                     RMB                              RMB            
  Weighted average remaining lease term (years)                                                      
  Operating leases                                                           5.7                4.8  
  Finance leases                                                             -                  1.3  
  Weighted average discount rate                                                                     
  Operating leases                                                           4.6                4.9  
  Finance leases                                                             -                  8.9  

F-66

15. LEASES(cont.)

The following table reconciles the undiscounted
cash flows of the Company’s leases as of December 31, 2023 to the present value of its operating lease payments, including rental
payments for lease renewal options the Company is reasonably certain to exercise:

  For the Years Ending December 31,       Finance      Operating  
                                          Lease            Lease  
 ──────────────────────────────────────────────────────────────────
                                          RMB                RMB  
  2024                                    118,505      2,836,406  
  2025                                    29,626       1,389,751  
  2026                                    -              808,874  
  2027                                    -              534,793  
  2028                                    -              544,114