Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 104

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 104
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 General against Genesis Global
Capital, its parent company Digital Currency Group, Inc., and former partner Gemini Trust Company have highlighted the perceived and actual
counterparty risk applicable to digital asset ownership and trading. Although these bankruptcies, closures and liquidations have not resulted
in any loss or misappropriation of our bitcoin, nor have such events adversely impacted our access to our bitcoin, legal precedent created
in these bankruptcy and other proceedings may increase the risk of future rulings adverse to our interests in the event one or more of
our custodians becomes a debtor in a bankruptcy case or is the subject of other liquidation, insolvency or similar proceedings.

While all of our custodians are subject to regulatory
regimes intended to protect customers in the event of a custodial bankruptcy, receivership or similar insolvency proceeding, no assurance
can be provided that our custodially-held bitcoin will not become part of the custodian’s insolvency estate if one or more of our
custodians enters bankruptcy, receivership or similar insolvency proceedings. Additionally, if we pursue any strategies to create income
streams or otherwise generate funds using our bitcoin holdings, we would become subject to additional counterparty risks. Any significant
non-performance by counterparties, including in particular the custodians with which we custody substantially all of our bitcoin, could
have a material adverse effect on our business, prospects, financial condition, and operating results.

Risks Related to Doing Business in China and Hong Kong

A downturn in the Hong Kong, China or global economy, and economic and political policies of China could materially and adversely affect our business and financial condition.

A part of our operations is
located in Hong Kong and mainland China. Accordingly, our business, prospects, financial condition and results of operations may
be influenced to a significant degree by political, economic and social conditions in Hong Kong and China generally and by continued
economic growth in Hong Kong and China as a whole. The Chinese economy differs from the economies of most developed countries in
many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation
of resources. While the Chinese economy has experienced significant growth over the past decades, growth has been uneven, both geographically
and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide
the allocation of resources. Some of these measures may benefit the overall Chinese economy, but may have a negative effect on us.

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