Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 209

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 209
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ANT ACCOUNTING POLICIES

(a) Basis of Presentation

The accompanying consolidated financial statements
of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”)
assuming the Company will continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction
of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern
exists.

(b) Going concern

For the year ended December 31, 2024, the Company incurred a net loss
of RMB157.0million, and net cash used in operating activities of RMB112.9million. As of December 31, 2024, the Company had an accumulated
deficit of RMB1.81billion, and cash and cash equivalents of RMB61.0million. The Company will require additional liquidity to continue
its operations over the next 12 months.

The Company is evaluating strategies to obtain
the required additional funding for future operations. These strategies may include, but are not limited to, obtaining equity financing,
issuing debt or entering into other financing arrangements, obtaining agreements with the existing investors to extend the due dates for
outstanding debt and the redemption dates of redeemable equity securities. In addition, the Company plans to diversify revenue streams
and implement cost saving measures to grow revenues and decrease expenses. However, the Company may be unable to access further equity
or debt financing when needed. As such, there can be no assurance that the Company will be able to obtain additional liquidity when needed
or under acceptable terms, if at all.

The consolidated financial statements do not include
any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the
Company were unable to continue as a going concern.

(c) Principles of Consolidation

The consolidated financial statements include
the unaudited condensed financial statements of the Company and its subsidiaries, which include the Hong Kong-registered entities, and
PRC-registered entities directly or indirectly owned by the Company. All transactions and balances among the Company and its subsidiaries
have been eliminated upon consolidation. The results of subsidiaries acquired or disposed of are recorded in the unaudited condensed consolidated
(loss)/income statements from the effective date of acquisition or up to the effective date of disposal, as appropriate.

A subsidiary is an entity in which (i) the Company
directly or indirectly controls more than50%