Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 265

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 265
---
 the dates of grant using the binomial option pricing model with the following assumptions used:

  Risk-free rate of return                     3.62       
  Volatility                                   36.48      
  Expected dividend yield                      —          
  Exercise multiple                            NA         
  Fair value of underlying ordinary share      US$ 13.12  
  Expected terms                               10 years   

The expected volatility was estimated
based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s
options. The risk-free interest rate was estimated based on the yield to maturity of U. S. treasury bonds denominated in US$ for a term
consistent with the expected term of the Company’s options in effect at the option valuation date. Expected dividend yield is zero
as the Company does not anticipate any dividend payments in the foreseeable future. The expected exercise multiple was estimated as the
average ratio of the stock price to the exercise price of when employees would decide to voluntarily exercise their vested options. Expected
term is the contract life of the option.

15. LEASES

The Company leases its offices, warehouses and
equipment under non-cancellable lease agreements that are classified as operating leases. The Company also has equipment that is leased
under non-cancelable finance lease. The following table presents balances reported in the consolidated balance sheet related to the Company’s
leases as of December 31, 2022 and 2023:

                                                 As of December 31,                                          
                                                 2022                                   2023                 
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────
                                                 RMB                                    RMB                  
  Operating lease Right-of-use assets                                    6,132,812                6,169,983  
  Operating lease liabilities – current                                  1,413,110                2,590,785  
  Operating lease liabilities – non-current                              4,824,198                4,045,089  
  Total operating lease liabilities                                      6,237,308                6,635,874  
  Finance lease assets                                                                                       
  Property, plant and equipment, at cost                                 -                          335,758  
  Accumulated depreciation                                               -                        ( 206,620  
  Property, plant and equipment, net                                     -                          129,138  
  Finance lease liabilities – current                                    -                          103,310  
  Finance lease liabilities – non-current                                -                           37,411  
  Total finance lease liabilities                                        -                          140,721