Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 272

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 272
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 1,500,000  
  Operating lease Right-of-use assets                                   3,003,335  
  Accounts payable                                                      ( 159,500  
  Short-term bank borrowings                                          ( 3,050,000  
  Accrued expenses and other current liabilities                         ( 58,253  
  Current portion of operating lease liabilities                        ( 212,294  
  Operating lease liabilities                                         ( 2,791,041  
  Deferred tax assets                                                     100,809  
  Total identifiable assets acquired and liabilities assumed            1,401,850  
  Add: Fair value of equity held by non-controlling interest *          2,005,467  
  Goodwill                                                              3,212,770  

  The                                                                                                                                     

F-71

16. BUSINESS COMBINATION(cont.)

YJW and KeKe

On June 17, 2022 the
Company formed two entities, Quanzhou DDC and Quanzhou Weishi with the Company and Mr. Zheng Dongfang holding the respective60% and40%
equity interests, These entities were set up as the transferees of the YJW and the KeKe Target Assets.

The transaction was accounted for under the acquisition
method of accounting in accordance with Accounting Standards Codification (“ ASC”) 805, Business Combinations. The acquisition
was completed when Quanzhou DDC and Quanzhou Weishi obtained control over the Target Assets on June 17, 2022.

The Company made estimates and judgments in determining
the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar
assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is as follows:

  Considerations:                                                                                      
  Consideration - Cash payable                                                              1,500,000  
  Consideration - Share options                                                             9,809,039  
  Total considerations                                                                     11,309,039  
  Less: Identifiable net assets acquired of the YJW Target Assets as of June 17, 2022                  
  Inventories                                                                                 420,016  
  Prepayments and other current assets                                                     12,064,620  
  Intangible asset – Customer relationship                                                  2,300,000  
  Deferred tax liabilities                                                                  ( 575,000  
  Total identifiable assets acquired and liabilities assumed                               14,209,636  
  Add: Fair value of equity held by non-controlling interest *                              6,031,487