Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 300

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 300
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2022 Convertible Loan

In December 2022, the Company entered into a convertible
loan agreement with a new lender for a total principal amount of RMB7.0million (US$1.0million) (“the December 2022 Convertible
Loan”). Interest rate is8% per annum of the December 2022 Convertible Loan and its maturity date is the first anniversary of the
issuance date. The Company may not prepay the Loan prior to the maturity date. The December 2022 Convertible Loan shall be repayable by
the lender within 3 business days of the date of written demand from the lender, if (1) the Company terminates the IPO process in the
US market (including but not limited to the Nasdaq Global Market System (“ Nasdaq”) or the New York Stock Exchange (“ NYSE”))
or (2) the Company engages any sponsors or underwriters for an IPO on Stock Exchange of Hong Kong Limited (“ SEHK”) on or prior
to the maturity date. In case the Qualified IPO has not completed before March 31, 2023, the lender shall have the right but not the obligation
to extend the maturity of the December 2022 Convertible Loan in increment of calendar day after the first anniversary of the maturity
date, for up to the number of days between the actual date of completion of the Qualified IPO and March 31, 2023.

Loan conversion shall take place on the date of
the corporate transaction conversion date or listing of the qualified IPO. The conversion price is US$11.68per share, or a price per
share that equals to the product of X multiplied by90% (where “ X” equals US$210.0million divided by the Company’s
total number of shares immediately before Qualified IPO calculated on fully diluted basis, or a price per share that equals to90% of
the price per share of any Initial Public Offering that is not a Qualified IPO, or a price per share that equals to the implied price
per share of any corporate transaction (other than an Initial Public Offering that is not a Qualified IPO), whichever is lower.

The Company elected to record the December 2022
Convertible Loan at fair value.

December 2022 Shareholder Loan

In October 2022, the Company entered into a loan
agreement of US$2.0million with one of the shareholders. The loans bear interest of8% per annum. The Company obtained the facility in
December 202