Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 316

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 316
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 and two other her nominee shareholders (“the Seller”) to acquire 51% equity interest of Shanghai Lishang Trading Limited (“Lishang”). Lishang is principally engaged in sales of RTC and RTE product gift boxes. Acquisition of Lishang shall diversify the Company’s existing business portfolio and broaden the source of income of the Company. The transaction was accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. The acquisition was completed when the Company obtained control over Lishang on May 1, 2022. The total consideration payable by the Company includes a fixed cash consideration of RMB2.9 million to be paid in four installments. In addition, the Company may be required to grant share options to the Lishang Seller which was accounted for as share -basedcompensation (note 20). The Company made estimates and judgments in determining the fair value of consideration transferred, acquired assets and liabilities assumed, based on management’s experiences with similar assets and liabilities with the assistance of an independent valuation firm. The allocation of the purchase price is as follows:

| Consideration – Cash payable                                   
 Less: Identifiable net assets acquired as of May 1, 2022       |     |        RMB 
  2,609,153 |   |
|:---------------------------------------------------------------|:----|-----------:|:--|
| Cash and cash equivalents acquired in the business combination |     |  2,071,881 |   |
| Inventories                                                    |     |    150,369 |   |
| Prepayments and other current assets                           |     |    846,544 |   |
| Intangible asset – Customer relationship                       |     |  1,500,000 |   |
| Operating lease Right-of-use assets                            |     |  3,003,335 |   |
| Accounts payable                                               |     |   (159,500 | ) |
| Short-term bank borrowings                                     |     | (3,050,000 | ) |
| Accrued expenses and other current liabilities                 |     |    (58,253 | ) |
| Current portion of operating lease liabilities                 |     |   (212,294 | ) |
| Operating lease liabilities                                    |     | (2,791,041 | ) |
| Deferred tax assets                                            |     |    100,809 |   |
| Total identifiable assets acquired and liabilities assumed     |     |  1,401,850 |   |
| Add: Fair value