Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 38

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 38
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. In addition, other unanticipated costs may arise. Moreover, we have approximately
RMB126.2 million (US$17.8 million) in debt which is due in the first quarter of 2025 and which will require significant cash resources
to service.

Our operating plan may change
because of factors currently unknown to us, and we may need to seek additional funds sooner than planned, including through public equity
or debt financings or other sources, such as strategic collaborations. Such financing may result in dilution to shareholders, imposition
of debt covenants and repayment obligations, or other restrictions that may adversely affect our business. In addition, we may seek additional
capital due to favorable market conditions or strategic considerations.

Our future capital requirements
depend on many factors, including:

  our ability to restructure our outstanding debt;  

  the number and characteristics of any additional products or manufacturing processes we develop or acquires to serve new or existing markets;  
  the expenses associated with our marketing initiatives;                                                                                        

  the costs required to fund domestic and international growth, including acquisitions;  

  the scope, progress, results and costs of researching and developing future products or improvements to existing products;  

  any lawsuits related to our products or commenced against us;  

  the expenses needed to attract and retain skilled personnel;  

  the costs associated with being a public company; and  

  the timing, receipt and amount of sales of future products.  

Additional funds may not be
available when we need them, on terms that are acceptable to us, or at all. If adequate funds are not available on a timely basis, we
may be required to:

  delay, limit, reduce or terminate our research and development activities or growth and expansion plans; and  

  delay, limit, reduce or terminate the expansion of sales and marketing capabilities or other activities that may be necessary to generate revenue and increase profitability.  
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Risks Relating to Our Corporate Structure

We may rely on dividends and other distributions
on equity paid by our PRC subsidiaries to fund cash and financing requirements we may have, and any limitation on the ability of our PRC
subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.

We are a Cayman Islands holding
company and we rely on dividends and other distributions on equity from our PRC subsidiaries for our cash and