Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 131

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 131
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 abolished the dual
rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China. However, the unification of
the exchange rates does not imply the convertibility of RMB into USD or other foreign currencies. All foreign exchange transactions continue
to take place either through the People’s Bank of China or other banks authorized to buy and sell foreign currencies at the exchange
rates quoted by the People’s Bank of China. Approval of foreign currency payments by the People’s Bank of China or other institutions
requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts.

New Acquisitions

M& A is part of the company’s
growth strategy. In 2022, 2023 and 2024, the company completed several acquisitions which marked the beginning of its multi-brand strategy.
A multi-brand strategy puts the company is a good position to serve a wider spectrum of consumers across different pricing segmentations.
It also allows the company to provide a wider and more representative range of Asian Food products to global customers. The company’s
M& A strategy focuses on acquisition complimentary brands in the Asian Food category and also targets that can expand and strengthen
the company’s sales network globally. M& A is an important part of our strategy to establish our footprint and sales channel
internationally. We are actively looking at potential targets in the US, Europe, Australia, SE Asia, and Middle East. Historically, virtually
all of our sales on been in China. For example, our international sales were zero in 2022, 4.21% in 2023 and 10.14% of our total revenue
for the year ended December 31, 2024. There can be no assurances that we will be successful in generating revenues internationally. For
example, our M& A strategy may not identify M& A candidates and acquisitions that are completed may not be successfully integrated
into our operations and may not produce significant international revenues.

On February 1, 2022, the Company,
through its wholly owned subsidiary, entered into a purchase agreement with Mr. LIN Kai Hang, Mr. SIO Leng Kit and Mr. Tang Wai Cheung,
to acquire 51% shares of Lin’s Group Limited (“ Lin’s Group”). Lin’s Group have its own brand “ Deliverz”
and principally engaged in manufacturing and distribution of RTC products with its major online sales channel. This was an upstream integration
where Lin’s Group is the major supplier of RTC meal kits