Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 152

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 8
Chunk 152
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, inquiries of personnel, review of documents
and discovery of relevant facts. The Company and the third-party expert concluded that there are no facts or evidence to support the allegations.

On April 1, 2025, Plaintiff
Leland Copenhagen (“ Copenhagen”) filed a civil action before the United States District Court for the Southern District of
New York alleging a single claim for breach of contract against DDC Enterprise Limited, DDC US Inc., and Yai’s Thai, Inc. arising
from Copenhagen’s termination of a written “ Employment Agreement” with Yai’s Thai, Inc. Copenhagen seeks alleged
damages of approximately US$235,000 in allegedly unpaid wages, severance, and expense reimbursements. We believe the claims are without
merit and intend to move for the dismissal of the action and, should the case continue, defend the action. Separately, on March 14, 2025,
Copenhagen, for himself and similarly-situated shareholders of Yai’s Thai, Inc., sent DDC Enterprise Limited, DDC US Inc., and Norma
Chu a letter demanding indemnification pursuant to a written “ Merger Agreement” arising from the alleged failure to properly
fund working capital to Yai’s Thai, Inc. and to release the Indemnity Holdback Cash (as defined in the Merger Agreement). Copenhagen
claims that the foregoing events prevented the shareholders from attaining their Maximum Earnout Payments of US$2.1 million. We believe
the claims are without merit and intend to defend the action.

On July 4, 2024, Brinc Limited
(“ Claimant”) commenced arbitration proceedings against us at the Hong Kong International Arbitration Centre claiming, inter
alia, damages of at least US$500,000 with interest and costs based on alleged breaches of a written “ Convertible Loan Agreement.”
On September 11, 2024 DDC filed an Answer to the Notice of Arbitration in which it disputed the claim with a set off, counterclaim, and
cross claim. A sole arbitrator has been appointed in the arbitration proceeding. On March 14, 2025, the arbitrator directed the parties
to file a Statement of Claim, Statement of Defense, and Counterclaim (as appropriate and applicable), which has not been filed as of the
date of this annual report.

On June 18 2024, Tontec International
Limited (“ Tontec”) commenced court proceedings against us at the Court of First Instance in Hong