Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 298

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 298
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 opening balance of contract liabilities                                ( 2,069,565                 ( 6,293,066                ( 13,773,974  
  Increase due to business acquisition                                                                      -                   2,678,134                           -  
  Increase due to cash received                                                                    35,789,984                  63,653,408                  57,294,497  
  Revenues recognized from cash received during the year                                         ( 29,496,918                ( 52,557,568                ( 44,917,326  
  Balance as of end of the year                                                                     6,293,066                  13,773,974                  12,377,171  

The contract liabilities will be recognized as
revenues when the Company fulfils its performance obligations to transfer the promised products or services to customers, which is expected
to occur within one year. Revenue recognized in the year of 2025 that were included in the contract liabilities at the beginning of the
year was RMB12,377,171.

The Company has elected the practical expedient
to not disclose the information about remaining performance obligations which are part of contracts that have an original expected duration
of one year or less.

F-97

26. COMMITMENTS AND CONTINGENCIES

Lease Commitments

As of December 31, 2024, the Company had total
future minimum lease payments under non-cancellable management fee with respect to the office are payable as follows:

                     Lease Commitment               
  Within 1 year                            191,613  

Litigation and contingencies

The Company and its operations from time to time
are, and in the future may be, parties to or targets of lawsuits, claims, investigations, and proceedings, including but not limited to
acts of non-compliance with respect to lease contracts, which are handled and defended in the ordinary course of business. The Company
may be unable to estimate the reasonably possible loss or a range of reasonably possible losses until developments in such matters have
provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from
plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, or the
progress of settlement negotiations. The Company accrues a liability for such matters when it is probable that a liability has been incurred
and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a
range,