Company: DDC
Filing Date: 2025-10-24
Form Type: F-1
Source: 0001213900-25-102214
Chunk: 117

Company: DDC Enterprise Ltd
Filing Date: 2025-10-24
Form: F-1
Chunk 117
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 in which we operate; •announcements by us or our competitors of new products, acquisitions, strategic relations, joint ventures or capital commitments; •additions to or departures of our key executives and employees; •fluctuations of exchange rates; and •sales or perceived sales of additional shares of our Class A Ordinary Shares or Preferred Shares. In addition, in the past, when the market price of a stock has been volatile, holders of that stock have instituted securities class action litigation against the issuer that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit and divert the time and attention of our management, which could seriously harm our business. We intend to grant employee share options and other share-based awards in the future. We will recognize any share-based compensation expenses in our consolidated statements of operations and comprehensive loss. Any additional grant of employee share options and other share-based awards in the future may have a material adverse effect on our results of operation. We adopted an employee share option plan in 2023, or the 2023 ESOP, for the purpose of granting share -basedcompensation awards to our employees, directors and consultants to incentivize their performance and align their interests with ours. As of the date hereof, awards may be granted under the 2023 ESOP for up to 1,208,000 Class A Ordinary Shares. In addition, on January 1 of each year, additional shares will be added to the 2023 ESOP in an amount up to 10% of the Company’s issued and outstanding Class A Ordinary Shares as of December 31 of the prior year; provided that the total number of Class A Ordinary Shares which may be issued upon exercise of all options to be granted to all participants under the 2023 ESOP shall not in aggregate exceed 15% of the Company’s issued and outstanding Class A Ordinary Shares. As a result, we expect to continue to incur significant share -basedcompensation expenses in the future. The amount of these expenses is based on the fair value of the share -basedawards. We account for compensation costs for all share options using a fair -valuebased method and recognize expenses in our consolidated statements of profit or loss and other comprehensive income. The expenses associated with share -basedcompensation will decrease our profitability, perhaps materially, and the additional securities issued under share -based 64 compensation plans will dilute the ownership interests of our shareholders. However, if we limit the scope of our share -based