Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 153

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 153
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 costs to obtain coverage. These rules and regulations could also make it more difficult for us to attract
and retain qualified members of our board of directors.

As a foreign private issuer, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from NYSE corporate governance listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards.

As a foreign private issuer,
we are permitted to take advantage of certain provisions in the NYSE rules that allow us to follow our home country law for certain governance
matters. Certain corporate governance practices in our home country, the Cayman Islands, may differ significantly from corporate governance
listing standards. For example, we have chosen to comply with the Cayman Island laws which do not require shareholder approval for issuances
of shares exceeding 20% of our outstanding shares, whereas the NYSE would otherwise require shareholder approval for such issuances. If
we choose to follow home country practices in the future, our shareholders may be afforded less protection than they would otherwise enjoy
under the NYSE corporate governance listing standards applicable to U.S. domestic issuers.

There can be no assurance that we will not be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. holders of our Class A Ordinary Shares.

We will be classified as a
passive foreign investment company, or PFIC, for any taxable year if either (a) 75% or more of our gross income for such year consists
of certain types of “passive” income or (b) 50% or more of the value of our assets (determined on the basis of a quarterly
average) during such year produce or are held for the production of passive income (the “asset test”). Based upon our current
and expected income and assets, including goodwill and projections as to the market price of our Class A Ordinary Shares we do not presently
expect to be classified as a PFIC for the current taxable year or the foreseeable future.

While we do not expect to
be treated as a PFIC, because the value of our assets for purposes of the asset test may be determined by reference to the market price
of our Class A Ordinary Shares, fluctuations in the market price of our Shares may cause us to become a PFIC for the current or subsequent
taxable years. The determination of whether we will