Company: DDC
Filing Date: 2025-07-22
Form Type: F-3
Source: 0001213900-25-066342
Chunk: 113

Company: DDC Enterprise Ltd
Filing Date: 2025-07-22
Form: F-3
Chunk 113
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RC
individuals and PRC entities) to register with SAFE or its local branches in connection with their establishment or control of an offshore
entity established for the purpose of overseas investment or financing with such PRC residents’ legally owned assets or equity interests
in domestic enterprises or offshore assets or interests. SAFE Circular 37 is applicable to our shareholders who are PRC residents and
may be applicable to any offshore acquisitions that we make in the future.

Under SAFE Circular 37, PRC
residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose
vehicles (“SPV”), will be required to register such investments with the SAFE or its local branches. In addition, any PRC
resident who is a direct or indirect shareholder of an SPV, is required to update its filed registration with the local branch of SAFE
with respect to that SPV, to reflect any material change. If any PRC shareholder of such SPV fails to make the required registration or
to update the previously filed registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the
proceeds from any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional
capital contributions into its subsidiary in China. On February 13, 2015, the SAFE promulgated a Notice on Further Simplifying and
Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which became effective on June 1, 2015
and was further amended in December 2019. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign
direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be registered with
qualified banks instead of the SAFE. The qualified banks will directly examine the applications and accept registrations under the
supervision of the SAFE or its local branch. Pursuant to SAFE Circular 37, PRC residents who participate in share incentive plans in overseas
non-publicly-listed companies due to their position as director, senior management or employees of the PRC subsidiaries of the overseas
companies may submit applications to the SAFE or its local branches for the foreign exchange registration with respect to offshore special
purpose companies. Our directors, executive officers and other employees who are PRC residents and who were granted options may follow
SAFE Circular 37 to apply for the foreign exchange registration before our company became an overseas listed