Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 340

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 340
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 estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s options. The risk -freeinterest rate was estimated based on the yield to maturity of U.S. treasury bonds denominated in US$ for a term consistent with the expected term of the Company’s options in effect at the option valuation date. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. The expected exercise multiple was estimated as the average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. Expected term is the contract life of the option. In 2022, the Company modified the share options for senior management members. Upon the modifications, service condition which originally ended on July 29, 2022 for 60,269 share options was removed. In addition, another 361,614 share options became fully vested as the performance condition of occurrence of a qualified IPO was removed. In June 2022 these two persons exercised their fully vested 361,614 share options. In connection with those share options that the performance condition was removed, the Company recognized compensation cost of RMB33,485,823 (US$5,141,560) on the dates based on the modification fair values of these awards.

F-73

DDC ENTERPRISE LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 20. SHARE-BASED COMPENSATION (cont.) The Company did not grant any options in 2024 and the fair values of the options granted in 2023 are estimated on the dates of grant or modification using the binomial option pricing model with the following assumptions used:

|                                         |     | For the Years Ended 
        December 31, |     |      |
|                                         |     |                2023 |     | 2024 |
| Risk-free rate of return                |     |       3.56% – 5.00% |     |    — |
| Volatility                              |     |      35.62 – 36.17% |     |    — |
| Expected dividend yield                 |     |                   — |     |    — |
| Exercise multiple                       |     |           2.2 – 2.8 |     |    — |
| Fair value of underlying ordinary share |     |  US$6.32 – US$13.04 |     |    — |
| Expected terms                          |     |            10