Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 217

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 217
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 of RMB as certified for customs
purposes by the Federal Reserve Bank of New York on December 29, 2023. No representation is made that the RMB amounts could have been,
or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate.

The US$ convenience translation is not required
under U. S. GAAP and all US$ convenience translation amounts in the accompanying consolidated financial statements are unaudited.

F-29

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

(g) Commitments and Contingencies

In the normal course of business, the Company
is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters,
including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency
is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential
material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, together with an estimate of the range of possible loss if determinable and material, is disclosed.

(h) Cash and Cash Equivalents

The Company considers all highly liquid investments
with a maturity of three months or less, when purchased, to be cash equivalents. As of December 31, 2022 and 2023, cash and cash equivalents
consist of cash on hand, cash at bank, demand deposits placed with commercial banks that are readily convertible to known amounts of cash,
and certain amounts held in accounts managed by other financial institutions in connection with the provision of online and mobile commerce
and related services. The cash and cash equivalents are held with reputable bank and financial institution counterparties.

                                                                                        As of December 31,                                            
                                                                                        2022                                    2023                  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                                                        RMB                                     RMB                   
  Cash on hand                                                                                                       3,028                   149,614  
  Cash balances include deposits in:                                                                                                                  
  Financial institutions in Chinese mainland                                                                                                          
  — Denominated in the US$                                                                                             963                       903  
  — Denominated in the RMB                                                                                       2,782,933                 3,952,852