Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 75

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 75
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 in these cases becoming
of material importance to us. We are subject to several legal proceedings, which, in the opinion of our management, would not have a material
and/or adverse effect on our business, financial condition or results of operations. We may continue to subject to legal proceedings in
the future. We cannot assure you that the outcome of the legal proceedings in the future, if any, will be favorable to us. If any verdict
or award is rendered against us or if we decide to settle the disputes, we may be required to incur monetary damages or other liabilities.
Even if we can successfully defend ourselves, we may have to incur substantial costs and spend substantial time and efforts in these lawsuits.
Consequently, any future litigation, legal disputes, claims or administrative proceedings could materially and adversely affect our business,
financial condition and results of operations.

We have limited insurance to cover our potential losses and claims.

We maintained limited insurance,
which we believe is customary for businesses of our size and type and in line with the standard commercial practice in our industry. See
“Our Business — Insurance.” If we were held liable for uninsured losses, our business and results of
operations may be materially and adversely affected. In addition, we are not insured against product liability or business interruptions
resulting from natural disasters such as droughts, floods, earthquakes or severe weather conditions, any suspension or cessation in the
supply of utilities or other calamities. Any liability claims for damages relating to our products, interruption to our operations, and
the resulting losses or damages, could materially and adversely affect our business, results of operations and financial condition.

We may require additional financing to service debt and achieve our goals, and a failure to obtain this necessary capital when needed on acceptable terms, or at all, may force us to delay, limit, reduce or terminate our product manufacturing and development, and other operations.

We believe that we will continue
to expend substantial resources for the foreseeable future as we expand into additional markets that we may choose to pursue. These expenditures
are expected to include costs associated with research and development, the acquisition or expansion of manufacturing and supply capabilities,
as well as marketing and selling existing and new products. In addition, other unanticipated costs may arise.

Our operating plan may change
because of factors currently unknown to us, and we may need to seek additional funds sooner than planned, including through public equity
or debt financings or other sources, such as strategic collaborations. Such financing may result in dilution to shareholders, imposition
of debt coven