Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 207

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 207
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 that may cause conflict with the agreement or negatively affect the interests under the agreement unless with the
prior written consent of City Modern.

The FSCs shall strictly follow the City Modern’s
decision to operate the business and should obtain the City Modern’s written approval before signing any significant contract, including
share transfer, financing, land leasing, operating, etc.

2) Exclusive Option Agreement

Pursuant to the three Exclusive Option Agreements
dated 2019 entered into by and between City Modern and the nominee equity holders of the FSCs (the “ FSCs Exclusive Option Agreements”),
the nominee equity holders of the FSCs irrevocably granted to City Modern an exclusive and unconditional option to purchase the FSCs’
equity and assets.

City Modern has the absolute right to determine
the specific time, method, frequency of exercising the above option, and has the right to request the nominee equity holders of the FSCs,
at any time, to transfer the entire equity of the FSCs to City Modern (or its designated representative), and has the right to request,
at any time, the FSCs to transfer to City Modern (or its designated representative) the FSCs’ assets. Except for City Modern and
its designated representative, no other person shall be entitled to purchase such equity and assets or other rights related to the equity
or assets in the FSCs.

The purchase price of equity shall be the lower
of the contribution by the nominee equity holders of the FSCs and the minimum price permitted by the applicable PRC laws. Pursuant to
the FSCs Exclusive Option Agreements, the nominee equity holders of the FSCs and/or the FSCs shall not terminate the FSCs Exclusive Option
Agreements unilaterally in any event unless otherwise required by applicable compulsory laws.

On January 10, 2019, the WFOE and City Modern
entered into a purchase agreement with Mr. Cui Yixiong, controlling shareholder of City Modern and his wife Ms. Wang Yike, to acquire
the business carried out by City Modern and its consolidated FSCs, for a total consideration of RMB1and360,144share options granted
to Mr. Cui Yixiong.

F-20

1. DESCRIPTION OF BUSINESS AND ORGANISATION(cont.)

The WFOE obtained control over City Modern and
its controlled FSCs through a number of contractual agreements, including Exclusive Consultancy and Service