Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066338
Chunk: 129

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 129
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 Kong- or PRC-based issuers could significantly limit or completely hinder our ability
to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless.

PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay us from using part of the proceeds from securities offerings to make loans or additional capital contributions to our PRC subsidiary, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

Any funds our Group transfers
to our PRC subsidiaries, either as a shareholder loan or as an increase in registered capital, are subject to approval by or registration
with relevant governmental authorities in China. According to the relevant PRC regulations on FIEs in China, capital contributions to
our PRC subsidiary are subject to registration with the SAMR (or its local branches) and filing with the Ministry of Commerce of the PRC,
or the MOFCOM, or its local branches and (if applicable) registration with other relevant governmental authorities in China. In addition,
(a) any foreign loan procured by our PRC subsidiary is required to be registered with SAFE or its local branches, and (b) our
PRC subsidiary may not procure loans which exceed the statutory amount as approved by the MOFCOM or its local branches. We may not complete
such registrations on a timely basis, with respect to future capital contributions or foreign loans by us to our PRC subsidiary. If we
fail to complete such registration, our ability to use part of the proceeds of our securities offering and to capitalize our PRC operations
may be negatively affected, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

In 2008, SAFE promulgated
the Circular on the Relevant Operating Issues Concerning the Improvement of the Administration of the Payment and Settlement of Foreign
Currency Capital of Foreign-Invested Enterprises, or SAFE Circular 142. SAFE Circular 142 regulated the conversion by foreign-invested
enterprises, or FIEs, of foreign currency into Renminbi by restricting the usage of converted Renminbi. SAFE Circular 142 provided that
any Renminbi capital converted from registered capitals in foreign currency of FIEs might only be used for purposes within the business
scopes approved by PRC governmental authority and such Renminbi capital might not be used for equity investments within China unless otherwise
permitted by PRC law. In addition, the SAFE strengthened