Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 146

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 146
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 in the industries 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.

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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-based compensation awards to our employees, directors and consultants
to incentivize their performance and align their interests with ours. As of the date of filing the Annual Report, awards may be granted
under the 2023 ESOP for up to 5,200,000 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 of this annual automatic increase, we expect that as of January 1, 2025, an additional 6.6 million shares will be
available for issuance under the 2023 ESOP As a result of these grants and potential future grants, we expect to continue to incur significant
share-based compensation expenses in the future. The amount of these expenses is based on the fair value of the share-based awards. We
account for compensation