Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 60

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 60
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| ● | investment in enhancing data and information technology and improving operating efficiency, including improving the efficiency in supply chain management, warehouse management and inventory control; and |

| ● | incurring costs associated with general administration, including legal, accounting and other expenses related to being a public company. |

As a result of these significant
expenses, we will have to generate sufficient revenue to remain profitable in future periods. We may not generate sufficient revenue for
a number of reasons, including potential lack of demand for our products, increasing competition, challenging macro-economic environment,
the ramifications of the COVID-19 pandemic, as well as other risks discussed elsewhere in this prospectus. If we fail to sustain or increase
profitability, our business and results of operations could be adversely affected.

Our historical financial conditions and results of operations are not representative of our future performance. We may be unable to effectively manage our future growth and expansion, and may not achieve growth in revenue and profit. If we are unable to manage our growth effectively, we may not be able to capitalize on new business opportunities and our business and financial results may be materially and adversely affected.

We have experienced growth
and plan to further expand in the future including through acquisitions. For the year ended December 31, 2024, we recorded RMB273.3 million
(or US$37.4 million) in total revenue compared to RMB205.5 million for the year ended December 31, 2023, representing a 33.0% increase.
Subsequent to December 31, 2024, we completed one acquisitions. Assuming the acquisition had taken place on 1 January 2024, the unaudited
pro forma revenue of the Company for the year ended December 31, 2024 would be RMB276.5 million (or US$111.2 million). For the year ended
December 31, 2024, our gross margin increased to 28.7% versus 25.0% for the year ended December 31, 2023.

Our ability to further increase
our research and development capabilities, selling and marketing capacity is critical to supporting our stable and continuous business
growth, which involves additional costs and uncertainties. In addition, to manage and support our growth, we must improve our existing
operational and administrative systems as well as our financial and management controls. Our continued success also depends on our ability
to recruit, train and retain qualified management personnel as well as other administrative and sales and marketing personnel, particularly