Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 60

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 60
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, we may not be successful
in executing our growth strategy, and our results of operations would suffer.

We have incurred net loss in the past, and we may not be able to achieve or maintain profitability in the future.

We incurred net loss of RMB122.2
million, RMB162.0 million and RMB157.0 million (US$21.5 million) in 2022, 2023 and 2024. We also had negative cash flows from operating
activities of RMB37.1 million, RMB89.4 million and RMB112.9 million (US$15.5 million) in the fiscal years ended December 31,
2022, 2023 and 2024 respectively. Management uses the adjusted EBITDA, non-GAAP financial measures, in evaluating our operating results
and for financial and operational decision-making purposes.

For the years ended December
31, 2022, 2023 and 2024, we incurred an adjusted EBITDA with loss of RMB37.5 million, RMB38.6 million and RMB25.4 million (US$3.5 million)
respectively. For details, please refer to section “Non-GAAP Financial Measure”.

We cannot assure you that
we will be able to generate net profits or positive cash flow from operating activities in the future. Our ability to achieve and maintain
profitability will depend in large part on our ability to maintain or increase our operating margin, either by growing our revenues at
a rate faster than our costs and operating expenses increase, or by reducing our costs and operating expenses as a percentage of our net
revenues. We also expect to continue to make significant future expenditures related to the continuous development and expansion of our
business, including:

| ● | acquisitions of new businesses and products and the ongoing working capital needs of those businesses and products; |

| ● | investments in our product development team and research and development team and in the development of new products; |

| ● | investments in sales and marketing, enlarging our customer base and promoting market awareness of our brands and products; |

| ● | investments in expansion of our online and offline distribution channels in a measured manner; |

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| ● | investment in enhancing data and information technology and improving operating efficiency, including improving the efficiency in supply chain management, warehouse management and inventory control; and |

| ● | incurring costs associated with general administration, including legal, accounting and