Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 319

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 319
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                      RMB                    
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Unrecognized tax benefits, beginning of year                                     -                        3,417,532    
  Increases                                                                        3,417,532                -            
  Decrease                                                                         -                        ( 3,417,532  
  Unrecognized tax benefits, end of year                                           3,417,532                -            

The Company classifies interest and penalties
related to uncertain tax benefits as interest expense and general and administrative expense, respectively.

The Company recognizes the benefit of positions
taken or expected to be taken in tax returns in the financial statements when it is more-likely-than-not that the position would be sustained
upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than50% likely
of being realized upon settlement.

Due to uncertainties under the tax law, positions
taken on tax returns may be challenged and ultimately disallowed by taxing authorities. Accordingly, it may not be appropriate to reflect
a position taken on the tax return when the outcome of that tax position is uncertain. For the year ended December 31, 2023, the Company
recorded the amounts of RMB2.9million, which are related to uncertainty of the Company’s subsidiaries in the Chinese mainland mainly
with regards to expense without valid vouchers. The unrecognized tax benefits balances, if recognized upon audit settlement or statute
expiration, would affect the effective tax rate. The Company is currently unable to provide an estimate of a range of total amount of
unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months.

According to the PRC Tax Administration and Collection
Law, the statute of limitation is threeyears if the underpayment of taxes is due to computational errors made by the taxpayer or
the withholding agent. The statute of limitation is extended to fiveyears under special circumstances where the underpayment of
taxes is more than RMB0.1million. In the case of transfer pricing issues, the statute of limitation is10years. There is no statute
of limitation in the case of tax evasion. The income tax returns of the Company’s PRC subsidiary and the VIEs for the years
from 2017 to 2023 are open to examination by the PRC tax authorities.

F-106

25. NET LOSS PER SHARE

The following table sets forth the basic and diluted
net income per ordinary share computation and provides a reconciliation of the numerator and