Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 102

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 102
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 raising transactions, including capital raising transactions using bitcoin as collateral, or otherwise generate funds using our
bitcoin holdings, or if we are forced to sell our bitcoin at a significant loss, in order to meet our working capital requirements, our
business and financial condition could be negatively impacted.

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If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our bitcoin, or if our private keys are lost or destroyed, or other similar circumstances or events occur, we may lose some or all of our bitcoin and our financial condition and results of operations could be materially adversely affected.

Substantially all of the bitcoin we own is held
in custody accounts at institutional-grade digital asset custodians. Security breaches and cyberattacks are of particular concern with
respect to our bitcoin. Bitcoin and other blockchain-based cryptocurrencies and the entities that provide services to participants in
the bitcoin ecosystem have been, and may in the future be, subject to security breaches, cyberattacks, or other malicious activities.
For example, in October 2021 it was reported that hackers exploited a flaw in the account recovery process and stole from the accounts
of at least 6,000 customers of the Coinbase exchange (our principal market for bitcoin), although the flaw was subsequently fixed and
Coinbase reimbursed affected customers. Similarly, in November 2022, hackers exploited weaknesses in the security architecture of the
FTX Trading digital asset exchange and reportedly stole over $400 million in digital assets from customers. A successful security breach
or cyberattack could result in:

| ● | a partial or total loss of our bitcoin in a manner that may                                                                 
 not be covered by insurance or the liability provisions of the custody agreements with the custodians who hold our bitcoin; |

| ● | harm to our reputation and brand; |

| ● | improper disclosure of data and violations of applicable data 
 privacy and other laws; or                                    |

| ● | significant regulatory scrutiny, investigations, fines, penalties, 
 and other legal, regulatory, contractual and financial exposure.   |

Further, any actual or perceived data security
breach or cybersecurity attack directed at other companies with digital assets or companies that operate digital asset networks, regardless
of whether we are directly impacted, could lead to a general loss of confidence in the broader Bitcoin blockchain ecosystem or in the
use of the Bitcoin network to conduct financial transactions, which could negatively impact us.

Attacks upon systems across a variety of industries,
including industries related to bitcoin, are