Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 53

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 53
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 significant
burdens and costs on our operations or may require us to alter our business practices.

In addition, we may be a particularly
attractive target for computer hackers, foreign governments or cyber terrorists. Unauthorized access to our proprietary internal and customer
data may be obtained through break-ins, sabotage, breach of our secure network by an unauthorized party, computer viruses, computer denial-of-service
attacks, employee theft or misuse, breach of the security of the networks of our third-party service providers, or other misconduct. Because
the techniques used by computer programmers who may attempt to penetrate and sabotage our proprietary internal and customer data change
frequently and may not be recognized until launched against a target, we may be unable to anticipate these techniques. Unauthorized access
to our proprietary internal and customer data may also be obtained through inadequate use of security controls. We may incur significant
costs in protecting against cyberattacks, and if an actual or perceived breach of security occurs to our systems or a third party’s
systems, we could be required to expend significant resources to mitigate the breach of security and to address matters related to any
such breach, including notifying users or regulators. Any of such incidents may also harm our reputation and adversely affect our business
and results of operations. In addition, we may be subject to negative publicity about our security and privacy policies, systems, or measurements
from time to time.

Any failure to prevent or
mitigate security breaches, cyber-attacks or other unauthorized access to our systems or disclosure of our customers’ data, including
their personal information, could result in loss or misuse of such data, interruptions to our service system, diminished customer experience,
loss of customer confidence and trust, impairment of our technology infrastructure, and harm our reputation.

As of the date of the Annual Report, on the basis that there exists
no outstanding inquiry, notice, warning, or sanctions in relation to our data security and data protection, we believe we are in compliance
of PRC laws and regulations in material aspects in relation to data security and data protection.

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However, in anticipation of
the strengthened implementation of cybersecurity laws and regulations and the continued expansion of our business, we face potential risks
of being required to comply with higher cybersecurity standards. If we are not able to comply with the cybersecurity and data privacy
requirements in a timely manner, or at all, we may be subject to government enforcement actions and investigations, rectification, fines,
penalties, suspension of our non-compliant operations,