Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 139

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 139
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. 26, 2022, the PCAOB
signed a Statement of Protocol with the CSRC and the Ministry of Finance of the PRC governing inspections and investigations of audit
firms based in China and Hong Kong, and stated the cooperation will be launched soon. The Statement scheduled several important issues
including the purpose, scope and form of the cooperation, use of information and specific data protection during the cooperation, etc.
In particular, Chinese authorities have committed to four critical items: First, in accordance with the Sarbanes-Oxley Act, the PCAOB
has independent discretion to select any issuer audits for inspection or investigation; Second, the PCAOB gets direct access to interview
or take testimony from all personnel of the audit firms whose issuer engagements are being inspected or investigated; Third, the PCAOB
has the unfettered ability to transfer information to the SEC, in accordance with the Sarbanes-Oxley Act; and Fourth, PCAOB inspectors
can see complete audit work papers without any redactions. On the last item, the PCAOB was able to establish view only procedures —
as it has done in the past with certain other jurisdictions — for targeted pieces of information (for example, personally identifiable
information). As uncertainties remain regarding the details of the cooperation and the implementation by the authorities of the two sides,
the risks we faced regarding the de-listing of our securities because of non-compliance to the laws and regulations adopted by the US
authorities will still exist.

On December 15, 2022, the
PCAOB Board determined that the PCAOB was able to secure complete access to inspect and investigate registered public accounting firms
headquartered in mainland China and Hong Kong and voted to vacate its previous determinations to the contrary. However, whether the PCAOB
will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland China
and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor’s control. The PCAOB continues
to demand complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023
and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated
that it will act immediately to consider the need to issue new determinations with the HFCAA if needed. If the PCAOB is unable to inspect
and investigate completely registered public accounting firms located in China and we