Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 108

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 108
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 that the current political situation will remain in effect for 50 years. Hong Kong has enjoyed the freedom to function
in a high degree of autonomy for its affairs, including currencies, immigration and custom, independent judiciary system and parliamentary
system. On July 14, 2020, the United States signed an executive order to end the special status enjoyed by Hong Kong post-1997.
As the autonomy currently enjoyed were compromised, it could potentially impact Hong Kong’s common law legal system and may
in turn bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and adversely
affect our business and operation. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not
be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the
Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof,
or the pre-emption of local regulations by national laws. These uncertainties could limit the legal protections available to us, including
our ability to enforce our agreements with our clients.

Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in laws and regulations in China could adversely affect us.

A part of our operations is
located in mainland China, and thus, our PRC subsidiaries are governed by PRC laws and regulations. PRC companies are generally subject
to laws and regulations applicable to foreign investments in China and, in particular, laws and regulations applicable to wholly foreign-owned
enterprises. The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions
may be cited for reference but have limited precedential value.

In 1979, the PRC government
began to promulgate a comprehensive system of laws, rules and regulations governing economic matters in general. The overall effect of
legislation over the past four decades has significantly enhanced the protections afforded to various forms of foreign investment in China.
However, China has not developed a fully integrated legal system, and recently enacted laws, rules and regulations may not sufficiently
cover all aspects of economic activities in China or may be subject to significant degrees of interpretation by PRC regulatory agencies.
In particular, because these laws, rules and regulations are relatively new, and because of the limited number of published decisions
and the nonbinding nature of such decisions, and because the laws, rules