Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 271

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 271
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213,096  
  Intangible asset - Customer relationship                              339,470  
  Operating lease Right-of-use assets                                   482,413  
  Contract liabilities                                                  ( 4,927  
  Accrued expenses and other current liabilities                      ( 430,507  
  Current portion of operating lease liabilities                       ( 93,468  
  Operating lease liabilities                                         ( 388,945  
  Deferred tax liabilities                                             ( 91,173  
  Total identifiable assets acquired and liabilities assumed            623,856  
  Add: Fair value of equity held by non-controlling interest **       1,744,476  
  Goodwill                                                            3,399,342  

  The                                                                                                                              

  The                                                                                                                                     

F-70

16. BUSINESS COMBINATION(cont.)

Lishang

On May 1, 2022, Shanghai DayDayCook entered into
a purchase agreement with Ms. Chen Di and two other her nominee shareholders (“the Seller”) to acquire51% equity interest
of Shanghai Lishang Trading Limited (“ Lishang”). Lishang is principally engaged in sales of RTC and RTE product gift boxes.

Acquisition of Lishang shall diversify the Company’s
existing business portfolio and broaden the source of income of the Company.

The transaction was accounted for under the acquisition
method of accounting in accordance with ASC 805, Business Combinations. The acquisition was completed when the Company obtained control
over Lishang on May 1, 2022.

The total consideration payable by the Company
includes a fixed cash consideration of RMB2.9million to be paid in four installments.

In addition, the Company may be required to grant
share options to the Lishang Seller which was accounted for as share-based compensation (note 21).

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:

  Consideration - Cash payable                                          2,609,153  
  Less: Identifiable net assets acquired as of May 1, 2022                         
 ───────────────────────────────────────────────────────────────────────────────────
  Cash and cash equivalents acquired in the business combination        2,071,881  
  Inventories                                                             150,369  
  Prepayments and other current assets                                    846,544  
  Intangible asset - Customer relationship