Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 15

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 15
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 and regulations, there is no guarantee that our current security measures
and those of our third-party service providers may always be adequate for the protection of our customer or company data. Any failure,
or perceived failure to maintain the security of our user data or to comply with applicable PRC or foreign privacy, data security and
personal information protection laws and obligations may result in civil or regulatory liability, including governmental or data protection
authority enforcement actions and investigations, fines, penalties, enforcement orders requiring us to cease operating in a certain way,
litigation, or adverse publicity, and may require us to expend significant resources in responding to and defending allegations and claims,
all of which may have material adverse effect on our business, operations and financial condition. In addition, compliance with applicable
laws on data privacy requires substantial expenditure and resources, including to continually evaluate our policies and processes and
adapt to new requirements that are or become applicable to us on a jurisdiction-by-jurisdiction basis, which would impose significant
burdens and costs on our operations or may require us to alter our business practices.

In addition, we may be a particularly
attractive target for computer hackers, foreign governments or cyber terrorists. Unauthorized access to our proprietary internal and customer
data may be obtained through break-ins, sabotage, breach of our secure network by an unauthorized party, computer viruses, computer denial-of-service
attacks, employee theft or misuse, breach of the security of the networks of our third-party service providers, or other misconduct. Because
the techniques used by computer programmers who may attempt to penetrate and sabotage our proprietary internal and customer data change
frequently and may not be recognized until launched against a target, we may be unable to anticipate these techniques. Unauthorized access
to our proprietary internal and customer data may also be obtained through inadequate use of security controls. We may incur significant
costs in protecting against cyberattacks, and if an actual or perceived breach of security occurs to our systems or a third party’s
systems, we could be required to expend significant resources to mitigate the breach of security and to address matters related to any
such breach, including notifying users or regulators. Any of such incidents may also harm our reputation and adversely affect our business
and results of operations. In addition, we may be subject to negative publicity about our security and privacy policies, systems, or measurements
from time to time.

Any failure to prevent or
mitigate security breaches, cyber-attacks or other unauthorized access to our systems or disclosure of our customers’ data, including
their personal information