Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 115

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 115
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 other applicable laws and regulations or compel all such PRC residents to do so. The failure or inability of our PRC resident shareholders
to comply with the registration procedures set forth in such regulations may subject us to fines and legal sanctions, restrict our cross-border
investment activities, limit the ability of our wholly foreign-owned subsidiaries in China to distribute dividends and the proceeds from
any reduction in capital, share transfer or liquidation to us, and we may also be prohibited from injecting additional capital into these
subsidiaries. Moreover, failure to comply with the various foreign exchange registration requirements described above could result in
liability under PRC law for circumventing applicable foreign exchange restrictions. As a result, our business operations and prospects
and our ability to distribute profits to you could be materially and adversely affected.

We and certain of our directors,
executive officers and other employees of our PRC subsidiaries and who have been granted options are subject to the Notice on Issues Concerning
the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company,
issued by SAFE in February 2012, or SAFE Circular 7, according to which, among others, employees, directors, supervisors and other
management members of PRC companies participating in any stock incentive plan of an overseas publicly listed company who are domestic
individuals as defined therein are required to register and make regular periodic filings with SAFE through a domestic qualified agent,
which could be a PRC subsidiary of such overseas listed company, and complete certain other procedures. Failure to complete the SAFE registrations
or meet other requirements may subject relevant participants in our share incentive plans to fines and legal sanctions and may also limit
the ability to make payment under our share incentive plans or receive dividends or sales proceeds related thereto, or our ability to
contribute additional capital into our wholly-foreign owned enterprises in China and limit our wholly-foreign owned enterprises’
ability to distribute dividends to us. We also face regulatory uncertainties that could restrict our ability to adopt additional share
incentive plans for our directors and employees under PRC law.

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We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption law.

We are subject to the U.S. Foreign
Corrupt Practices Act (the “FCPA”), and other laws that prohibit improper payments or offers of payments to foreign governments
and their officials and political parties by U.S. persons and issuers as defined by the statute for the purpose of