Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 130

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 130
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Fluctuations in exchange rates could adversely affect our business and the value of our securities.

Changes in the value of the
RMB against the U.S. dollar, Euro and other foreign currencies are affected by, among other things, changes in China’s political
and economic conditions. Any significant revaluation of the RMB may have a material adverse effect on our revenues and financial condition,
and the value of, and any dividends payable on our shares in U.S. dollar terms. For example, to the extent that we need to convert
U.S. dollars we receive from our securities offerings into RMB for our operations, appreciation of the RMB against the U.S. dollar
would have an adverse effect on RMB amount we would receive from the conversion. Conversely, if we decide to convert our RMB into U.S. dollars
for the purpose of paying dividends on our Class A Ordinary Shares or for other business purposes, appreciation of the U.S. dollar
against the RMB would have a negative effect on the U.S. dollar amount available to us. In addition, fluctuations of the RMB against
other currencies may increase or decrease the cost of imports and exports, and thus affect the price-competitiveness of our products against
products of foreign manufacturers or products relying on foreign inputs.

Since July 2005, the
RMB is no longer pegged to the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange
market to prevent significant short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly in value
against the U.S. dollar in the medium to long term. Moreover, it is possible that in the future PRC authorities may lift restrictions
on fluctuations in the RMB exchange rate and lessen intervention in the foreign exchange market.

Restrictions on currency exchange may limit our ability to utilize our revenues effectively.

Some of our cash are denominated
in Renminbi. The Renminbi is currently convertible under the “current account,” which includes dividends, trade and service-related
foreign exchange transactions, but not under the “capital account,” which includes foreign direct investment and loans, including
loans we may secure from our PRC subsidiaries. Currently, our Shanghai subsidiary may purchase foreign currency for settlement of “current
account transactions,” including payment of dividends to us, without the approval of SAFE by complying with certain procedural requirements.
However, the relevant PRC governmental authorities may limit