Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 274

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 274
---
 as follows:

  Considerations:                                                                           
  Consideration - Cash payable                                                  13,713,780  
  Consideration - Payable settled in certain ordinary shares                     9,526,307  
  Consideration - Extinguishment debt settled in cash                              180,645  
  Consideration - Extinguishment debt settled in certain ordinary shares         2,514,578  
  Total considerations                                                          25,935,310  
  Less: Identifiable net assets acquired as of July 1, 2023                                 
  Cash and cash equivalents acquired in the business combination                 6,796,462  
  Accounts receivable                                                              981,979  
  Inventories                                                                    3,725,134  
  Prepayments and other current assets                                           2,895,627  
  Property, plant and equipment                                                    338,595  
  Intangible asset - Brand name                                                  3,612,900  
  Accounts payable                                                             ( 3,222,859  
  Short-term bank borrowings                                                     ( 181,250  
  Current portion of long-term bank borrowings                                   ( 302,838  
  Contract liabilities                                                            ( 38,088  
  Accrued expenses and other current liabilities                              ( 13,523,241  
  Current portion of finance lease liabilities                                   ( 108,626  
  Long-term bank borrowings                                                      ( 235,451  
  Finance lease liabilities                                                       ( 88,044  
  Deferred tax liabilities                                                     ( 1,083,870  
  Total identifiable assets acquired and liabilities assumed                     ( 433,570  
  Goodwill                                                                      26,368,880  

F-73

16. BUSINESS
COMBINATION(cont.)

Shanghai Yuli Development Limited (“ Yuli”)

On April 1, 2023, Shanghai DayDayCook entered
into a purchase agreement with Ms. Chen Di and two other shareholders (“the Yuli Seller”) to acquire51% equity interest of
Shanghai Yuli Development Limited (“ Yuli”). Yuli is principally engaged in sales of RTC and RTE gift product vouchers.

Acquisition of Yuli shall diversify the Company’s
existing business portfolio and broaden the source of income of the Company.

The transaction was accounted for under the acquisition
method of accounting in accordance with ASC 805, Business Combinations. The acquisition was completed when the Company obtained control
over Yuli on July 1, 2023.

The total consideration payable by the Company
is a fixed cash