Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 85

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 3
Chunk 85
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 of NYSE American. If we fail to comply with the applicable listing standards and
NYSE American delists our Class A Ordinary Shares, we and our shareholders could face significant material adverse consequences, including:

  a limited availability of market quotations for our Class A Ordinary Shares;  

  reduced liquidity for our Class A Ordinary Shares;  

  a determination that our Class A Ordinary Shares are “penny stock”, which would require brokers trading in our Class A Ordinary Shares to adhere to more stringent rules and possibly result in a...  

  a limited amount of news about us and analyst coverage of us; and  

  a decreased ability for us to issue additional equity securities or obtain additional equity or debt financing in the future.  
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On April 23, 2024, we received
notice from the NYSE American that we were not in compliance with the minimum stockholders’ equity requirement. The NYSE American
has accepted our plan to regain compliance by October 23, 2025 and is monitoring our progress under our plan. We believe that as of the
date of filing this Annual Report we in in compliance with the stockholders’ equity requirement. However, the NYSE American may
not agree and we may fail to meet this listing requirement in the future, for example, if our stockholders’ equity is reduced by
ongoing loses from operations or losses from other events such as impairment of good will, reduction in value of investments, etc. Failure
to maintain compliance would have a material adverse effect on our stock price.

The NYSE American continued
listing standards also require that our stock not trade below $1.00 per share for 30 consecutive days. Our stock has been trading below
$1.00 share for more that 30 consecutive days. If we fail to satisfy this requirement, our stock could be delisted which would have a
material adverse effect on our stock price.

Our 2023 Annual Report was
not filed with the SEC in a timely fashion. This and any other future filing delinquencies could cause our stock to be delisted from the
NYSE American which would have a material adverse effect on our stock price.

The National Securities Markets
Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities,
which are referred to as “covered securities.” Although our Class A Ordinary Shares are covered securities, and although the
states