Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 271

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 271
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,367 | ) |     |        (299,374 | ) |
| Cash and cash equivalents at the beginning of the year                   |     |            — |     |      942,658 |   |     |         352,291 |   |
| Cash and cash equivalents at the end of the year                         |     |      942,658 |     |      352,291 |   |     |          52,917 |   |

Risks in relation to the VIE structure In the opinion of management, based on the legal opinion obtained from the Company’s local legal counsel, the ownership structures of the Company and its VIEs, do not and will not violate any applicable local laws, regulations, or rules currently in effect; the agreements among the Company, each of the VIEs and its nominee shareholders, governed by local laws, as described above, are valid, binding and enforceable in accordance with their terms and applicable local laws, rules, and regulations currently in effect, both currently and immediately after giving effect to the listing in capital market, and do not and will not violate any applicable local laws, regulations, or rules currently in effect. However, there are substantial uncertainties regarding the interpretation and application of current and future local laws and regulations. Accordingly, if the local government finds that the contractual arrangements do not comply with its restrictions on foreign ownership of businesses, or if the local government otherwise finds that the Company and the VIEs are in violation of local laws or regulations or lack the necessary permits or licenses to operate the Company’s business, the relevant regulatory authorities would have broad discretion in dealing with such violations, including: •revoking the business and operating licenses of the Company; •discontinuing or restricting the operations; •imposing fines or confiscating any of VIEs’ income that they deem to have been obtained through illegal operations; •imposing conditions or requirements with which the Company’s subsidiaries or the VIEs may not be able to comply; •requiring the Company to restructure the ownership structure or operations, including terminating the contractual arrangements with the VIEs; •restricting or prohibiting the Company’s use of the proceeds of overseas offering to finance the business and operations in these jurisdictions; or •taking other regulatory or enforcement actions that could be harmful to the business. In accordance with VIE Agreements, the Company has the power to direct the activities of the VIEs. Therefore, the Company considers that there are no assets in the VIEs that can be