Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 45

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 45
---
 be launched, which enables us
to price our products at a competitive rate. Nevertheless, we cannot ascertain that we will adopt a competitive pricing strategy for our
products at all times. If we price our products too low, our profit margin will suffer. If we price our products higher than consumers’
expected price, we may not achieve the sales volume we expect, in which case revenues from the corresponding products may be negatively
affected.

Even if we properly price
our products at their launch time, we may need to offer substantial discounts, especially during the major shopping festivals such as
“618,” “Singles’ Day” and “Double Twelve,” to promote our brand awareness and to drive sales
volume, or cut down the price as our products advance in their life cycles to maintain such products’ attractiveness to consumers.
We may also need to reduce the prices to sell excess inventory in the event that we fail to accurately forecast demands. Any such price
cuts may not lead to the sales volume we expect and may negatively impact the demand for our other newly launched or higher-end products,
in which case our revenues could be negatively impacted. Furthermore, some customers may purchase our products in bulk when we offer substantially
discounted or promotional prices and then re-sell them through their proprietary or third-party channels. The market and pricing for our
products may be interrupted by the secondary sale pricing strategies adopted by such resellers and the possible negative shopping experience
they provide to consumers, which may negatively impact our brand image and our business.

Our business and prospects depend on our ability to build our brands and reputation, which could be harmed by negative publicity with respect to us, our products and operations, our management, brand ambassadors, key opinion leaders (“KOLs”), or other business partners.

We believe that maintaining
and enhancing the reputation of our brands is of significant importance to the success of our business and that our financial success
is directly dependent on consumer perception of our brands. Well-recognized brands are important to enhancing our attractiveness to consumers.
Since we operate in a highly competitive market, brand maintenance and enhancement directly affect our ability to maintain our market
position. As a young company, our brand awareness among consumers may not be as strong as the more established food brands, and maintaining
and enhancing the recognition and reputation of our brand is critical to our business and future growth.

<div align='center'>25</div>

Our ability to maintain our
reputation and brands is affected by many factors, some of which are beyond our control. These factors