Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 58

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 58
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 not required for the listing and trading of our Class A Ordinary Shares on the NYSE American given that we
are an exempted company with limited liability incorporated under the laws of the Cayman Islands controlled by non-PRC citizens and we
do not fit into the definition of “overseas special purpose vehicle” under the M& A Rules. As such, we do not fit into
the definition of “overseas special purpose vehicle” under the M& A Regulations and we have never conducted any merger
or acquisitions of any PRC domestic companies with a related party relationship. MOFCOM’s approval under the M& A Rules is not
required as we have never conducted any merger or acquisitions of any PRC domestic companies with a related party relationship as prescribed
in the M& A Rules.

There remain some uncertainties
as to how the M& A Rules will be interpreted or implemented in the context of an overseas offering and its opinions summarized above
are subject to any new laws, rules and regulations or detailed implementations and interpretations in any form relating to the M& A
Rules. We cannot assure you that relevant PRC government agencies, including the CSRC, would reach the same conclusion as we do. If it
is determined that CSRC approval under the M& A Rules is required for an offering of our securities, we may face sanctions by the CSRC
or other PRC regulatory agencies for failure to seek CSRC approval. These sanctions may include fines and penalties on our operations
in the PRC, limitations on our operating privileges in the PRC, delays in or restrictions on the repatriation of the proceeds from our
initial public offering into the PRC, restrictions on or prohibition of the payments or remittance of dividends by our PRC subsidiary,
or other actions that could have a material and adverse effect on our business, financial condition, results of operations, reputation
and prospects, as well as the trading price of our securities. Furthermore, the CSRC or other PRC regulatory agencies may also take actions
requiring us, or making it advisable for us, to halt our future securities offering before the settlement and delivery of the securities
that we may offer in the future. Consequently, if you engage in market trading or other activities in anticipation of and prior to the
settlement and delivery of the securities we may offer in the future, you would be doing so at the risk that the settlement and delivery
may not occur.

Moreover, except for emphasizing
the need to strengthen the administration over