Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 275

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 275
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 Convertible Loans”). Interest rates
range between12% - 17.29% per annum and maturity dates are either the first or the third anniversary from the issuance date. The
Company may not prepay the 2023 Convertible Loans prior to the maturity date.

Loan conversion shall take place on the date of
the corporate transaction or the qualified Initial Public Offering, which is a public offering to the general public of the ordinary shares
listed on a qualified exchange results in the pre-money market capitalization of the Company being no less than US$210,000,000(“ QIPO”).
In the event of a QIPO, the total outstanding principal balance of the convertible loan (plus accrued and unpaid interest) shall automatically
convert in whole without any further action by the Lenders into ordinary shares at the conversion price (the “ Qualified IPO Conversion”)
on or immediately before the date of listing of the Qualified IPO (the “ QIPO Conversion Date”). The conversion price is a
price per share that equals to60% of the price per share of any IPO that is not a QIPO, or a price per share that equals to the implied
price per share of any corporate transaction and a QIPO, whichever is lower.

F-77

17. CONVERTIBLE LOANS AND SHAREHOLDER LOANS(cont.)

The Company elected to record the May& June
2023 Convertible Loans at fair value.

As the IPO completed in November 2023 is not a
QIPO as defined by the original loan agreements, all Lenders except three converted their loans with the principal plus interest of RMB2.7million and HK$0.9million (equivalent to RMB0.8million) into148,520class A ordinary shares at the conversion price of US$3.4per share.
The Company applied the debt extinguishment guidance, recognized the fair value of Class A ordinary shares and derecognized the carrying
value of the May& June 2023 Convertible Loans of RMB6.0million (US$0.8million), which resulted in an extinguishment loss of RMB0.03million (US$0.005million) (note 22).

As of December 31, 2023, RMB2,453,738due to one
lender was recorded as current liability at fair value, and it has been reclassified to other payables due to maturity as of December
31, 2024.

As of