Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 72

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 72
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 expenditure of significant financial and management
resources, injunctions against us or payment of damages. We may need to obtain licenses from third parties who allege that we have infringed
their rights, but such licenses may not be available on terms acceptable to us or at all. These risks have been amplified by the increase
in the number of third parties whose sole or primary business is to assert such claims.

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China has enacted laws and
regulations governing internet access and the distribution of products, services, news, information, audio-video programs and other content
through the internet. The PRC government has prohibited the distribution of information through the internet that it deems to be in violation
of PRC laws and regulations. If any of the information disseminated by us or our user communities were deemed by the PRC government to
violate any content restrictions, we would not be able to continue displaying such content and could become subject to penalties, including
confiscation of income, fines, suspension of business and revocation of required licenses, which could materially and adversely affect
our business, financial condition and results of operations.

The outcome of any claims,
investigations and proceedings is inherently uncertain, and in any event, defending against these claims could be both costly and time-consuming
and could significantly divert the efforts and resources of our management and other personnel. An adverse determination in any such litigation
or proceedings could cause us to pay damages, legal fees and other costs, as well as limit our ability to conduct business or require
us to change the manner in which we operate. Even if such assertions against us are unsuccessful, they may cause us to lose existing and
future business and incur reputational harm and substantial legal fees.

Failure to successfully operate our information systems and implement new technology effectively could disrupt our business or reduce our profitability.

We increasingly rely on information
technology systems to process, transmit and store information in relation to our operations. A portion of the communications between our
personnel and our suppliers, distributors and consumers depends on information technology. Our information technology systems may be vulnerable
to interruption due to a variety of events beyond our control, including but not limited to, natural disasters, telecommunications failures,
computer viruses, hackers and other security issues. Any such interruption to our information technology system could disrupt our operations
and negatively impact our production and ability to fulfill sales orders, which could have an adverse effect on our business, financial
condition and results of operations.

In addition, we may from time