Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 41

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 41
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 the only ones that we face. Additional risks not presently known to us or
that we currently deem immaterial may also significantly impair our business operations and could result in a complete loss of your investment.

Risks Related to Our Food Business and Industry

Our business and future growth prospects rely on consumer demand for our products. Any shift in consumer demand, or any unexpected situation with a negative impact on consumer demand may materially and adversely affect our business and results of operations.

Our business relies on consumer
demand for our products, which depends substantially on factors such as (i) economic growth and increasing disposable income; (ii) diversified
consumption scenarios and increasing consumption frequency; (iii) continuous product innovation and upgrade; and (iv) increasing
development and improvement of sales channels. Changes in any of the above at any time could result in decline in consumer demand for
our products. Our business development will depend partially on our ability to (i) anticipate, identify or adapt to such changes,
(ii) introduce new attractive products and marketing strategies in a timely manner, and (iii) develop an effective sales network
accordingly.

Although we dedicate resources
to consumer-centric market research and data analysis to upgrade our existing products and to develop, design and launch new products,
in order to cater to consumer preferences, we cannot assure you that our product portfolio will continuously lead or capture the market
trends. Any changes in consumer preferences and tastes, or any of our failure to anticipate, identify or adapt to market trends, may impose
downward pressure on sales and pricing of our products or lead to increases in selling and distribution expenses, and therefore materially
and adversely affect our business and results of operations.

In order to promptly respond
to rapidly developing market trends and changing tastes, preferences and lifestyle of consumers, our sales and development teams regularly
observe the changing trends in our target markets and launch new products or different serving sizes and flavors from time to time. While
we have in the past successfully developed, promoted and achieved market acceptance of our products, we cannot assure you that we will
be able to continuously develop new products or our existing or new products in the future will continue to generate sufficient consumer
demand to be profitable.

If we fail to retain existing customers, derive revenue from existing customers consistent with historical performance or acquire new customers cost-effectively, our business could be adversely affected.

Our ability to increase revenues
depends in part on our ability to retain and keep existing customers engaged so that they continue to purchase products from us, and to
ac