Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 304

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 304
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DC Enterprise Limited, DDC US Inc., and Yai’s Thai, Inc. arising from Copenhagen’s
termination of a written “ Employment Agreement” with Yai’s Thai, Inc. Copenhagen seeks alleged damages of approximately
US$235,000in allegedly unpaid wages, severance, and expense reimbursements. The Company believes the claims are without merit and intend
to move for the dismissal of the action and, should the case continue, defend the action. Separately, on March 14, 2025, Copenhagen, for
himself and similarly-situated shareholders of Yai’s Thai, Inc., sent DDC Enterprise Limited, DDC US Inc., and Norma Chu a letter
demanding indemnification pursuant to a written “ Merger Agreement” arising from the alleged failure to properly fund working
capital to Yai’s Thai, Inc. and to release the Indemnity Holdback Cash (as defined in the Merger Agreement). Copenhagen claims that
the foregoing events prevented the shareholders from attaining their Maximum Earnout Payments of US$2.1million. The Company believes
the claims are without merit and intend to defend the action.

On July 4, 2024, Brinc Limited (“ Claimant”)
commenced arbitration proceedings against the Company at the Hong Kong International Arbitration Centre claiming, inter alia, damages
of at least US$500,000with interest and costs based on alleged breaches of a written “ Convertible Loan Agreement.” On September
11, 2024 DDC filed an Answer to the Notice of Arbitration in which it disputed the claim with a set off, counterclaim, and cross claim.
A sole arbitrator has been appointed in the arbitration proceeding. On March 14, 2025, the arbitrator directed the parties to file a Statement
of Claim, Statement of Defense, and Counterclaim (as appropriate and applicable), which has not been filed as of the date of this annual
report.

On June 18 2024, Tontec International Limited
(“ Tontec”) commenced court proceedings against the Company at the Court of First Instance in Hong Kong, claiming, inter
alia, damages of at least US$584,361with interest and costs based on breaches of a written “ Shareholder’s Loan Agreement”
(as amended). On November 29, 2024, the Company filed and served a Form 16C in which it admitted the claim and applied for an order allowing
the Company to make payment by cash