Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 284

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 284
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 is required
to continuously provide services to Lishang for no less than three years after the acquisition, and as the Company is obligated to deliver
cash unless an IPO takes place, these share-based arrangements are accounted for as liability-classified award and were amortized over
the service period of the Lishang Seller based on the cash amount to be paid the IPO does not occur. The compensation cost recognized
in connection with this liability-classified award for the years ended December 31, 2023 and 2024 amounted to RMB10,405,554respectively
and was recognised as non-current liabilities.

As the IPO occurred in November 2023, the Company
is not required to pay RMB3.5million or RMB12.4million any more. All share options will be settled in shares based on the actual performance
during the performance periods. As of December 31, 2024, the Company has issued271,549share options to the Lishang Seller.

A summary of the share-based compensation activities
for the years ended December 31, 2023 and 2024 is presented below:

                                                                                         Weighted                         Weighted                                                  
                                                                                         average                          average grant-                                            
                                                                                         exercise price                   date/modification                                         
                                                                                                                          date fair value                                           
                                                                                         US$                              US$                                                       
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Outstanding at January 1, 2023                                          1,140,920                           4.8016                             11.1808      7.04      12,756,547  
  Granted to employees, directors, consultants and senior management        759,605                           4.2971                              5.2321                            
  Forfeited                                                                ( 74,796                           5.1412                             15.5963                            
  Outstanding at December 31, 2023                                        1,825,729                           4.5778                              8.5249      7.61      15,564,202  
  Canceled                                                                ( 169,801                          11.6762                              5.6849                            
  Outstanding at December 31, 2024                                        1,655,928                           3.8499                              8.8161      7.02      14,598,906  
  Vested and expected to vest as of