Company: DDC
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043916
Chunk: 93

Company: DDC Enterprise Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 93
---
 rules and regulations are expected to significantly increase our accounting,
legal and financial compliance costs and make some activities more time-consuming. We also expect these rules and regulations to make
it more expensive for us to obtain and maintain directors’ and officers’ liability insurance. As a result, it may be more
difficult for us to attract and retain qualified persons to serve on our board of directors or as executive officers. Accordingly, increases
in costs incurred as a result of becoming a publicly traded company may materially and adversely affect our business, financial condition
and results of operations.

Securities analysts may not publish favorable
research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to decline.

The trading market is influenced
to some extent by the research and reports that industry or financial analysts publish about us and our business. We do not control these
analysts. As a newly public company, we may be slow to attract research coverage and the analysts who publish information about our securities
will have had relatively little experience with us or our industry, which could affect their ability to accurately forecast our results
and could make it more likely that we fail to meet their estimates. In the event we obtain securities or industry analyst coverage, if
any of the analysts who cover us provide inaccurate or unfavorable research or issue an adverse opinion regarding our stock price, our
stock price could decline. If one or more of these analysts cease coverage of us or fail to publish reports covering us regularly, we
could lose visibility in the market, which in turn could cause our stock price or trading volume to decline and result in the loss of
all or a part of your investment in us.

Recently introduced economic substance legislation
of the Cayman Islands may impact us and our operations.

The Cayman Islands, together
with several other non-European Union jurisdictions, has recently introduced legislation aimed at addressing concerns raised by the Council
of the European Union as to offshore structures engaged in certain activities which attract profits without real economic activity. With
effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act (Revised), or the Substance Law, and issued
Regulations and Guidance Notes came into force in the Cayman Islands introducing certain economic substance requirements for “relevant
entities” which are engaged in certain “relevant activities,” which in the case of exempted companies incorporated before
January 1, 2019, will apply in respect of financial years commencing July 1,