Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 301

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 301
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2. The repayment date is the earlier of (1) the consummation of a Qualified IPO and (2) January 22, 2024. The Company shall
repay in full the loan, together with any amounts which may become due or outstanding hereunder on the repayment date. It was recorded
as non-current liability at amortized cost and the balance as of December 31, 2022 was RMB13,929,200.

In December 2023, the Company repaid the December
2022 Shareholder Loan.

May & June 2023 Convertible
Loans

In May and June 2023, the Company entered into
a number of convertible loan agreements with its employees and certain individuals (“the Lenders”) for the aggregate principal
amount of RMB6.1million and HK$0.9million (equivalent to RMB0.8million) (“the 2023 Convertible Loans”). Interest rates
range between12% - 17.29% per annum and maturity dates are either the first or the third anniversary from the issuance date. The
Company may not prepay the 2023 Convertible Loans prior to the maturity date.

Loan conversion shall take place on the date of
the corporate transaction or the qualified Initial Public Offering, which is a public offering to the general public of the ordinary shares
listed on a qualified exchange results in the pre-money market capitalization of the Company being no less than US$210,000,000(“ QIPO”).
In the event of a QIPO, the total outstanding principal balance of the convertible loan (plus accrued and unpaid interest) shall automatically
convert in whole without any further action by the Lenders into ordinary shares at the conversion price (the “ Qualified IPO Conversion”)
on or immediately before the date of listing of the Qualified IPO (the “ QIPO Conversion Date”). The conversion price is a
price per share that equals to60% of the price per share of any IPO that is not a QIPO, or a price per share that equals to the implied
price per share of any corporate transaction and a QIPO, whichever is lower.

F-90

18. CONVERTIBLE LOANS AND SHAREHOLDER LOANS(cont.)

The Company elected to record the May& June
2023 Convertible Loans at fair value.

As the IPO completed in November 2023 is not a
QIPO as defined by the original loan agreements, all Lenders except three converted