Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 148

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 6
Chunk 148
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 exercise of future discretion; (iv) duty not to put themselves in a position
in which there is a conflict between their duty to the company and their personal interests; and (v) duty to exercise independent
judgment. In addition to the above, directors also owe a duty to act with skill, care and diligence. It was previously considered that
a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of
his knowledge and experience. However, English and Commonwealth Courts have moved toward an objective standard with regard to the required
skill and care and these authorities are likely to be followed in the Cayman Islands.

Risk Management

One of the key functions of
our board of directors is informed oversight of our risk management process. Our board of directors does not have a standing risk management
committee, but rather administers this oversight function directly through our board of directors as a whole, as well as through various
standing committees of our board of directors that address risks inherent in their respective areas of oversight. In particular, our board
of directors is responsible for monitoring and assessing strategic and regulatory risk exposure, including monitoring the Company’s
compliance with cybersecurity and data protection rules and regulations, approving the Company’s budget after considering various
risks such as risks associated with supply chain, suppliers and key service provider, if any. Our board receives periodic reporting from
our chief executive officer on cybersecurity and any other business operational risks.

6. D. Employees

As of December 31, 2023 we
had 78 employees. The employees are based in China and the United States. The following table sets forth the number of employees by function
as of December 31, 2023:

  Function                                                     
 ───────────────────────────────────────────────────────────────
  Sales and Marketing                            31      39.7  
  Supply Chain Management                         5       6.4  
  Legal, Compliance, and Finance                 18      23.1  
  Technology & Product Design & Development       3       3.8  
  Operations                                     21      26.9  
  Total                                          78       100  

Our success depends on our
ability to attract, retain, and motivate employees. We offer employees competitive salaries, performance-based cash bonuses, equity-based
incentives, comprehensive training and development programs, and other fringe benefits and incentives. We have maintained a good working
relationship with its employees, and the Company