Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 142

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 142
---
 settle the dispute and avoid suspension
of their ability to practice before the SEC and audit U.S.-listed companies. The settlement required the firms to follow detailed procedures
and to seek to provide the SEC with access to Chinese firms’ audit documents via the CSRC. Under the terms of the settlement,
the underlying proceeding against the four China-based accounting firms was deemed dismissed with prejudice four years after entry
of the settlement. The four-year mark occurred on February 6, 2019.

While we cannot predict if
the SEC will further challenge the four China-based accounting firms’ compliance with U.S. law in connection with U.S. regulatory
requests for audit work papers or if the results of such a challenge would result in the SEC imposing penalties such as suspensions, if
the accounting firms are subject to additional remedial measures, our ability to file our financial statements in compliance with SEC
requirements could be impacted. A determination that we have not timely filed financial statements in compliance with the SEC requirements
could ultimately lead to the delisting of our securities from the NYSE American or the termination of the registration of our securities
under the Securities Exchange Act of 1934, or both, which would substantially reduce or effectively terminate the trading
of our in the United States.

<div align='center'>76</div>

Risks Related to Our Securities

An active trading market for our Class A Ordinary Shares may not be sustained.

Prior to our IPO in November
2023, there has been no public market for our Ordinary Shares, including our Class A Ordinary Shares. An active trading market for our
Class A Ordinary Shares may not be sustained. The lack of an active trading market may impair the value of your shares and your ability
to sell your shares at the time you wish to sell them. An inactive trading market may also impair our ability to raise capital by selling
our Class A Ordinary Shares and entering into strategic partnerships or acquiring other complementary products, technologies or businesses
by using our Class A Ordinary Shares as consideration.

In addition, if we fail to
satisfy exchange listing standards, we could be delisted, which would have a negative effect on the price of our securities. For example,
we are not currently compliant with NYSE American listing standards, including, for example, the requirement that we timely file reports
with the SEC and that our shares trade above $1.00 per share. If we fail to satisfy these and all other listing requirements our shares
will be delisted on the NYSE American.

We expect