Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 80

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 80
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 account. Any limitation on the ability of our applicable PRC subsidiaries
to pay dividends or make other kinds of payments to us could materially and adversely limit our ability to grow, make investments or acquisitions
that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

In addition, the Enterprise
Income Tax Law and its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by
Chinese companies to non-PRC-resident enterprises (having no institution or establishment within China or whose incomes have no actual
connection to its institution or establishment within China) unless otherwise exempted or reduced according to treaties or arrangements
between the PRC central government and governments of other countries or regions where the non-PRC-resident enterprises are incorporated.

PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from making loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

We are a Cayman Islands holding
company conducting a significant portion of our operations in China through our PRC subsidiaries. We may make loans to our PRC subsidiaries
subject to the approval or registration from governmental authorities and limitation of amount, or we may make additional capital contributions
to our wholly foreign-owned subsidiaries in China. Any loans to our subsidiaries in China are subject to foreign debt registrations. In
addition, the foreign exchange receipts under the capital account of a domestic institution shall be used pursuant to the principle of
authenticity and self-use within its business scope. The foreign exchange receipts under the capital account of a domestic institution
and the Renminbi funds obtained from foreign exchange settlement may be used by the domestic institution for expenditures under the current
account within its business scope or the expenditure under the capital account permitted by laws and regulations. Such receipts and funds
of the domestic institutions shall not be used for the following purposes: (i) directly or indirectly used for payment beyond the
business scope of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly used for
investment in securities or other investments than principal-secured products of banks unless otherwise provided by relevant laws and
regulations; (iii) directly or indirectly used for granting of loans to non-affiliated enterprises, with the exception that such
granting is expressly permitted in the business license; and (iv) used for construction or