Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 54

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 54
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 investigations launched by PRC regulators in the future. Any failure or delay in
the completion of the cybersecurity review procedures or any other non-compliance with the related laws and regulations may result in
rectification, fines or other penalties, including suspension of business, website closure, removal of our app from the relevant app stores,
and revocation of prerequisite licenses, as well as reputational damage or legal proceedings or actions against us, which may have material
adverse effect on our business, financial condition or results of operations.

On June 10, 2021, the
SCNPC promulgated the PRC Data Security Law, which took effect on September 1, 2021. The PRC Data Security Law imposes data security
and privacy obligations on entities and individuals carrying out data activities, and introduces a data classification and hierarchical
protection system based on the importance of data in economic and social development, as well as the degree of harm it will cause to national
security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed,
leaked, or illegally acquired or used. The PRC Data Security Law also provides for a national security review procedure for data activities
that may affect national security and imposes export restrictions on certain data and information. As uncertainties remain regarding the
interpretation and implementation of these laws and regulations, we cannot assure you that we will comply with such regulations in all
respects and we may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. We may also become
subject to fines and/or other sanctions which may have material adverse effect on our business, operations and financial condition.

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On August 20, 2021, the
SCNPC promulgated the PRC Personal Information Protection Law, or the PIPL, which took effect in November 2021. In addition to other
rules and principles of personal information processing, the PIPL specifically provides rules for processing sensitive personal information.
Sensitive personal information refers to personal information that, once leaked or illegally used, could easily lead to the infringement
of human dignity or harm to the personal or property safety of an individual, including biometric recognition, religious belief, specific
identity, medical and health, financial account, personal whereabouts and other information of an individual, as well as any personal
information of a minor under the age of 14. Only where there is a specific purpose and sufficient necessity, and under circumstances where