Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 264

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 264
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622,630 | ) |
| Net cash and cash equivalents provided by financing activities |     |    1,331,000 |   |     |      488,498 |   |
| Net decrease in cash                                           |     |      (26,986 | ) |     |     (134,132 | ) |
| Cash and cash equivalents at the beginning of the year         |     |      166,654 |   |     |      139,668 |   |
| Cash and cash equivalents at the end of the termination date   |     |      139,668 |   |     |        5,536 |   |

The VIE arrangements with Farm Entities The Company acquired a business for planting fresh vegetables (“Farm”) in January 2019. The acquired Farm business was operated through Shanghai City Modern Agriculture Development Co., Ltd. (“City Modern”), a limited liability company controlled by Mr. Cui Yixiong and Shanghai City Vegetable Production and Distribution Co -op(“City Vegetable”), Shanghai Jiapin Vegetable Planting Co -op(“Jiapin Vegetable”) and Shanghai Jiapin Ecological Agriculture Co -op(“Jiapin Ecological”), incorporated in the PRC, collectively referred to as “Farm Entities” thereafter. Prior to the acquisition, the Farm Entities operate agricultural greenhouse facilities in the PRC, where it produces, markets, and sells premium -qualityvegetable products. City Vegetables, Jiapin Vegetables and Jiapin Ecological are farmers’ specialized cooperatives (together the “FSCs”) in China. Legal members of FSCs shall consist of no less than 80% qualified farmers. Mr. Cui Yixiong controlled these FSCs since their establishment, and the formal contractual agreements, including Exclusive Consultancy and Service Agreement and Exclusive Option Agreement (collectively, the “FSC VIE Agreements”), were entered into among City Modern, and the nominee equity holders, i.e. the qualified farmers of the FSCs in January 2019. The principal terms of the FSC VIE arrangements are as follows: 1) Exclusive Consultancy and Service Agreement City Modern shall provide management consulting, technical support, intellectual property licensing and other relevant services to the FSCs during the service period, which is 20 years and will be automatically renewed for 20 years upon each expiration. The FSCs shall pay to City Modern 100% of their net profit as service fees for the consultancy services provided by