Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 200

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 200
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E, Weishi and the nominee
shareholder entered into an agreement to terminate the VIE arrangements with Weishi for nil consideration. Upon the termination, the Company
recognized a gain of RMB426,690, which is the difference between (i) net liabilities of RMB63,362,821of Weishi as of March 31, 2022,
and (ii) a net payable of RMB62,936,131due to the Company. after the Company waiving the net receivables due from Weishi. Historically,
the Company’s business was substantially conducted through its wholly owned subsidiaries established in China. Prior to the termination,
revenue generated through Weishi amounted to RMB nilfor the three months ended March 31, 2022. The Company’s management believes
that the termination of the Weishi VIE Agreements does not represent a strategic shift that has a major effect on the Company’s
operations and financial results and is not accounted as discontinued operations.

The following presents the balance sheet information
of Weishi as of March 31, 2022, and the operations and cash flows of Weishi for the three months ended March 31, 2022.

                                                                March 31,                   
                                                                RMB                         
  Cash and cash equivalents                                                          5,536  
  Amounts due from related parties *                  (ii)                      83,137,208  
  Prepayments and other current assets                                             732,305  
  Total current assets                                                          83,875,049  
  Property, plant and equipment, net                                               254,693  
  Other non-current assets                                                          10,000  
  Total non-current assets                                                         264,693  
  Total assets                                        (i)                       84,139,742  
  Short-term bank borrowings                                                       968,000  
  Amount due to related parties *                     (ii)                     146,073,339  
  Accrued expenses and other current liabilities                                   461,224  
  Total current liabilities                                                    147,502,563  
  Total liabilities                                   (i)                      147,502,563  

  As of March 31, 2022, amounts due from and due to related parties represent the receivables and payables that Weishi had with the Company’s consolidated subsidiaries, which would be eliminated ...  
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F-