Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 132

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 5
Chunk 132
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 or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative
contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our combined and consolidated
financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity
that serves as credit, liquidity or market risk support to such entity.

Contractual Obligations

The following table sets forth
our contractual obligations as of December 31, 2023:

                                  Payment Due by Period                                                                               
  Contractual Obligations         Total                                                                                               
                                  (in RMB)                                                                                            
  Operating lease payments                                    7,428,692       2,836,406      2,198,625      1,078,907      1,314,754  
  Finance lease payments                                        148,131         108,750         39,381      -              -          
  Short-term bank borrowings                                 19,500,000      19,500,000              -      -              -          
  Long-term bank borrowings                                   7,512,629       1,993,168      1,979,086      1,406,998      2,133,377  
  Total                                                      34,589,452      24,438,324      4,217,092      2,485,905      3,448,131  

The amount represents contractual
lease obligations entered into by the Group which will be due within the next 5 years and long-term bank borrowings entered by the
group due within the next 5 years.

Internal Control Over Financial Reporting

Prior to our IPO in November
2023, we had been a private company with limited accounting personnel and other resources with which we address our internal control over
financial reporting. We and our independent registered public accounting firm identified one material weakness in our internal control
over financial reporting as of December 31, 2023. As defined in the standards established by the PCAOB, a “material weakness”
is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

The material weakness that
has been identified relates to our lack of sufficient financial reporting and accounting personnel with appropriate understanding of accounting
principles generally accepted in the