Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 137

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 137
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 up to a maximum amount specified by the local government from time to time at locations
where we operate our businesses. Companies operating in China are also required to withhold individual income tax on employees’
salaries based on the actual salary of each employee upon payment. We may be subject to late fees and fines in relation to the underpaid
employee benefits and under-withheld individual income tax, our financial condition and results of operations may be adversely affected.

Our legal rights to lease certain properties could be challenged, which could prevent us from continuing to use these leased properties or increase the costs for relocating our business premises.

We leased our business premises
from third parties who either own the properties or lease the properties from the ultimate property owner. Some of our lessors were unable
to provide us with copies of title certificates or documents evidencing the authorization or consent of the owners of such properties.
Where the lessors do not have the proper legal right to lease the properties, the corresponding lease agreements may be deemed invalid.
Furthermore, some properties may not be designated for commercial use. If we are not adequately indemnified by the lessors for our related
losses, our business may be adversely affected. Some of the properties we lease from the third parties have been mortgaged by the owners
prior to leasing to us. We may not be able to continue using such properties if the mortgage is foreclosed. In addition, under the PRC
law, failure to register a lease agreement with the local housing bureau may result in the risk that we may not be able to continue to
occupy the relevant properties if the lease is challenged by third parties. Our lease agreements generally require the lessor to make
such registrations, however, as of the date of the Annual Report, the lease agreements relating to certain of our business premises had
not been duly registered by the relevant lessors. Accordingly, if these lessors do not have the appropriate titles to the properties or
necessary approvals from the ultimate owners or fail to make the requisite registrations, or if the mortgage over the leased properties
is foreclosed, we may be unable to continue to operate the affected properties or incur additional costs for relocating our business premises.

The recent enactment of the Holding Foreign Companies Accountable Act may result in de-listing of our securities.

Over the past decade, U.S. SEC
and PCAOB and the Chinese counterparts, namely, the China Securities Regulatory Commission, or the CSRC, and PRC Ministry of Finance have
been in an impasse over the