Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 227

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 227
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 primarily
based on past history of making payments when due and current ability to pay, taking into account information specific to the counterparties
as well as pertaining to the economic environment in which the counterparties operate. Based on this analysis, the Company determines
what credit terms, if any, to offer to each counter party individually. If the assessment indicates a likelihood of collection risk, the
Company will not deliver the services or sell the products to or through the counterparties or require the counterparties to pay cash
in time to secure payment.

F-40

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont.)

Concentration of customers and suppliers

One customer individually represents greater than
10.0% of total revenues of the Company for the years ended December 31, 2024.

  For the Years Ended                                                            
  December 31,                                                                   
  2022                     2023                         2024                     
  proportion of            proportion of                proportion of            
  total                    total                        total                    
  revenues                 revenues                     revenues                 
 ─────────────────────────────────────────────────────────────────────────────────
  Customer A                                  13.1                         22.1  

  Less than 10.0% of the Company’s revenue in the respective years.  

Three customers represent greater than 10.0% of
total accounts receivable, net balance of the Company as of December 31, 2023 and 2024, respectively. Accounts receivable, net balances
from these customers are as follows:

                  As of December 31,                                           
                  2023                              2024                       
 ───────────────────────────────────────────────────────────────────────────────
                  proportion of                     proportion of              
  Customer A                              16.7                           *     
  Customer B                              15.5                           *     
  Customer C                              *                              24.3  
  Customer D                              12.3                           10.9  
  Customer E                              *                              14.6  

  Less than 10.0% of the Company’s accounts receivable, net in the respective years.  

The Company conducts credit evaluations on its
customers and generally does not require collateral or other security from such customers.

Three suppliers, three suppliers and three suppliers
represent greater than 10.0% of total purchases for the years ended December 31, 2022, 2023 and 2024, respectively. Purchase
amounts from each supplier for the years ended December 31,