Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 314

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 314
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31, 2022, the Company had granted 18,016 share options to Mr. Liao Xuefeng and 2,002 share options to Mr. Zheng Haohua, respectively, in connection with the achievements of the performance target. As the Selling Shareholders are continuously providing services to the Company under the Company’s instructions to operate the online stores and such contingent payments are linked to the achievement of performance target at the end of each service period, these share options will be accounted for as share -basedcompensation. 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:

|                                                                |     |       RMB |   |
| Considerations                                                 |     |           |   |
| Consideration – Cash payable                                   |     | 3,000,000 |   |
| Consideration – Contingent cash payable*                       |     | 3,331,019 |   |
| Total considerations                                           |     | 6,331,019 |   |
| Less: Identifiable net assets acquired as of January 12, 2021  |     |           |   |
| Cash and cash equivalents acquired in the business combination |     |   349,323 |   |
| Accounts receivable, net                                       |     | 2,648,789 |   |
| Prepayments and other current assets                           |     |    90,755 |   |
| Intangible asset – franchise agreement                         |     | 2,200,000 |   |
| Accrued expenses and other current liabilities                 |     |   (43,279 | ) |
| Deferred tax liabilities                                       |     |  (550,000 | ) |
| Total identifiable assets acquired and liabilities assumed     |     | 4,695,588 |   |
| Goodwill                                                       |     | 1,635,431 |   |

Goodwill recognized on the acquisition is attributable mainly to the skills and technical talent of the target Company’s work force. None of the goodwill is expected to be deductible for income tax purpose. ____________ *In December 2022, the Company and the sellers confirmed separately in writing that the performance target for the third performance period from October 2021 to December 2021 and the performance target for the fourth performance period from January 2022 to March 2022 were partially