Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 134

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 134
---
2.15 million. In addition, the Company may be required
to grant share options to the Yuli Seller at the end of each performance period, adjusted based on the achievement of Yuli’s revenue,
gross profit and net profit for each of the two performance periods during July 1, 2023 to December 31, 2024, over the target performance.

On December 26, 2023, the Company entered
into a purchase agreement with shareholders of Yai’s Thai, Inc. to acquire its 100% interest of shares. Yai’s Thai operates
the brand “ Yai’s Thai”, a Thai American food brand selling curry and sauce products based in USA. This acquisition enables
the Company to expand its customer base into the US market. The acquisition was completed when the Company obtained control over Yai’s
Tai on February 1, 2024. The subscription consideration includes cash consideration of US$1,674,461, and payable consideration of US$6,697,842
settled in certain ordinary shares.

5. C. Research and Development, Patent and
Licenses, etc.

We regard our trademarks, copyrights, domain names, know-how, patents,
and similar intellectual property as critical to our success, and we rely on a combination of intellectual property laws and contractual
arrangements, including confidentiality and non-compete agreements with our employees and others, to protect our proprietary rights As
of December 31, 2024, we had registered 279 trademarks, 1 copyright of works and 5 computer software copyrights in China, including three
registered trademarks in Hong Kong.

5. D. Trend Information

Other than as disclosed elsewhere in this annual report, we are not
aware of any trends, uncertainties, demands, commitments or events for the year ended December 31, 2024 that are reasonably likely to
have a material effect on our total net revenues, income, profitability, liquidity or capital reserves, or that caused the disclosed financial
information to be not necessarily indicative of future operating results or financial conditions.

5. E. Critical Accounting Estimates

Our consolidated financial
statements are prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”).
The preparation of consolidated financial statements in conformity with U. S. GAAP requires the Company to make certain estimates and assumptions
that affect the amounts reported and disclosed in the consolidated financial statements and related notes. Our significant accounting
policies are set forth in note