Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 201

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 201
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17

1. DESCRIPTION OF BUSINESS AND ORGANISATION(cont.)

                                           For the year ended      For the three  
                                                          RMB      RMB            
  Operating expenses                                                              
  Sales and marketing expenses                    ( 7,212,320      ( 430,388      
  Research and development expenses                 ( 233,663      -              
  General and administrative expenses             ( 4,673,618      ( 792,914      
  Loss from operations                           ( 12,119,601      ( 1,223,302    
  Interest expenses                                   ( 9,924      ( 29,146       
  Interest income                                         659      -              
  Other income                                            103      480            
  Loss before income tax expenses                ( 12,128,763      ( 1,251,968    
  Income tax expense                                        -      -              
  Net loss                                       ( 12,128,763      ( 1,251,968    

                                                                      For the year ended      For the three  
                                                                                     RMB                RMB  
  Net cash and cash equivalents used in operating activities                 ( 1,357,986          ( 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  

F-18

1. DESCRIPTION OF BUSINESS AND ORGANISATION(cont.)

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-quality vegetable products. City Vegetables,
Jiapin Vegetables