Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 134

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 134
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 the Labor Contract Law sets forth additional restrictions and increases
the costs involved with dismissing employees. To the extent that we need to significantly reduce our workforce, the Labor Contract Law
could adversely affect our ability to do so in a timely and cost-effective manner, and our results of operations could be adversely affected.
In addition, for employees whose employment contracts include noncompetition terms, the Labor Contract Law requires us to pay monthly
compensation after such employment is terminated, which will increase our operating expenses.

We expect that our labor costs,
including wages and employee benefits, will continue to increase. Unless we are able to pass on these increased labor costs to our buyers
by increasing the prices of our products and services, our financial condition and results of operations would be materially and adversely
affected.

We are a Cayman Islands corporation and a significant portion of our business is conducted in the PRC. Moreover, all of our directors are located outside of the United States and except for Mr. Matthew Gene Mouw, are all nationals or residents of jurisdictions other than the United States, and all or a substantial portion of their assets are located outside of the United States. As a result, you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. Federal or state courts may be limited.

We are a company incorporated
under the laws of the Cayman Islands, we conduct most of our operations in China, and most of our assets, including our cash, cash equivalents
and short term investments, are located in China and Hongkong. All of our directors are located outside of the United States and
except for Mr. Matthew Gene Mouw, are all nationals or residents of jurisdictions other than the United States, and all or a
substantial portion of their assets are located outside of the United States. Ms. Norma Ka Yin Chu, our Chief Executive Officer and
Chairwoman, is a permanent resident of Hong Kong; and Samuel Chun Kong Shih, our independent director, is a permanent resident of
Canada.

As a result, it may be difficult
for investors to effect service of process within the United States upon us or these persons in the Cayman Islands or in China, or
to enforce judgments obtained in U.S. courts against us or them, including judgments predicated upon the civil liability provisions
of the securities laws of the United States or any state in the United States. A judgment of a United States court for
civil liabilities predicated upon the federal securities laws of the United States may