Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 319

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 319
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 the Company completed IPO on November 17, 2023, RMB 24.50 million is not required to be paid by the Company. All share options will be settled in shares based on the actual performances during the performance periods. On December 1, 2023, the Company entered into a supplemental agreement with the Yuli Seller to adjust the cash consideration to RMB2.15 million due to the subsequent financial due diligence results of the historical financial information of Yuli. The Company adjusted the provisional amount at the acquisition date on July 1, 2023, because this adjustment results from new information about facts and circumstances that existed at the acquisition date and falls within the measurement period. In addition, the performance periods of the share options to be granted to the Yuli Seller were shortened to two performance periods during July 1, 2023 to December 31, 2024. And the target performances were also modified accordingly. As of December 31, 2023, the Company has not issued any share options to the Yuli Seller as the financial information of Yuli for the first performance periods up to December 31, 2023 was still under preparation and was subject to audit. The Company made estimates and judgments in determining the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is as follows:

| Consideration – Cash payable                                   
 Less: Identifiable net assets acquired as of July 1, 2023      |     |        RMB 
  1,892,830 |   |
|:---------------------------------------------------------------|:----|-----------:|:--|
| Cash and cash equivalents acquired in the business combination |     |  1,120,094 |   |
| Accounts receivable                                            |     |    635,396 |   |
| Prepayments and other current assets                           |     |  3,197,779 |   |
| Intangible asset – Customer relationship                       |     |  2,400,000 |   |
| Short-term borrowings                                          |     | (4,273,000 | ) |
| Contract liabilities                                           |     | (2,640,046 | ) |
| Accrued expenses and other current liabilities                 |     |   (161,263 | ) |
| Deferred tax liabilities                                       |     |   (572,955 | ) |
| Total identifiable assets acquired and liabilities assumed