Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 295

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 295
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891,043in current liabilities as
of December 31, 2022 and 2023, respectively, and the balances of RMB62,170,776and RMB56,928,815in non- current liabilities as of December
31, 2022 and 2023, respectively.

F-86

18. CONVERTIBLE LOANS AND SHAREHOLDER LOANS(cont.)

August 2021 Convertible Loan

In August 2021, the Company entered into
a convertible loan agreement with a new lender for a total principal amount of RMB12.0million (US$1.9million) (“the August 2021
Convertible Loan”). The repayment date falls on 12 months from the date of the August 2021 Convertible Loan agreement, provided,
that if a proposed financing has not occurred within 12 months from the date of the August 2021 Convertible Loan, the parties hereby agree
that the repayment date shall be extended by 3 months. Interest rate is0% per annum. Loan conversion shall take place automatically on
or immediately before the date of listing of the qualified IPO. The conversion price is US$19.84per share, or a price per share that
equals to US$300,000,000divided by the Company’s total number of shares immediately before Qualified IPO calculated on fully diluted
basis, whichever is lower.

In August 2022, the Company renewed the August
2021 Convertible Loan agreement and also revised certain terms. Based on the revised terms, the repayment date is August 30, 2023 or an
earlier date if agreed by both parties. Interest rate is0% per annum. Loan conversion shall take place automatically on or immediately
before the date of listing of the qualified IPO. The conversion price is US$11.68per share, or a price per share that equals to US$210million divided by the Company’s total number of shares immediately before Qualified IPO calculated on fully diluted basis, or a
price per share that equals to80% of the price per share of Qualified IPO, whichever is lower.

The Company assessed whether there were substantial
changes of terms of the August 2021 Convertible Loan. If the terms are substantially different, the modification is accounted for as a
debt extinguishment. Otherwise, it is accounted for as a modification. In order to determine whether the terms are substantially different
upon each modification, the Company compared whether the present value of the cash flows under the terms