Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 283

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 283
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 of100% of its subscription price on each Redeemable Convertible Preferred
Shares, compounded with an interest rate of8% per annum, plus any and all declared but unpaid dividends.

Shareholders of Series B-1, Series B,
Series A-1 and Series A Redeemable Convertible Preferred Shares shall be entitled to receive, prior and in preference to any
distribution of any of the assets or funds of the Company to the holders of any previous Redeemable Convertible Preferred Shares, Series Seed
Convertible Preferred Shares and ordinary shares, the amount equal to the sum of100% of its subscription price on each Redeemable Convertible
Preferred Shares, compounded with an interest rate of12% per annum, plus any and all declared but unpaid dividends.

After unconditional and irrevocable distribution
or payment in full of amount to the preferred shareholders, all remaining assets and funds of the Company available for distribution to
the shareholders shall be distributed ratably among all the shareholders based on the number of shares held by such shareholders on a
fully diluted basis. If the value of the remaining assets of the Company is less than the aggregate liquidation preference amounts payable
to the holders of a particular series of preferred shares, then the remaining assets of the Company shall be distributed pro rata amongst
the holders of all outstanding preferred shares of that series.

Initial measurement and subsequent accounting
for Redeemable Convertible Preferred Shares

The Redeemable Convertible Preferred Shares are
initially classified as mezzanine equity in the consolidated balance sheets as these Redeemable Convertible Preferred Shares may be redeemed
at the options of the holders on or after an agreed upon date outside the sole control of the Company. The holders of the Redeemable Convertible
Preferred Shares have the ability to convert the instrument into the Company’s ordinary shares. The Redeemable Convertible Preferred
Shares are recognized at their respective fair value at the date of issuance, net of issuance costs of nil, except for those described
below.

The proceeds from the issuance of the Series B-1
Redeemable Convertible Preferred Shares were first allocated to the 2017 Option based on its fair value of RMB2.6million (US$0.4million).

F-79

17. REDEEMABLE CONVERTIBLE PREFERRED SHARES(cont.)

The 2021 Warrant, the HL Option and the PFI Warrant
are legally detachable and separately exercisable for underlying redeemable convertible preferred shares that are contingently redeem